What Is an Electronic Check (eCheck)?
5 Min Read | Published: May 23, 2025
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An electronic check (eCheck) is a digital alternative to a paper check. Learn how it works, how long it takes to process, and alternatives to consider.
At-A-Glance
- An eCheck serves the same purpose as a paper check but is created securely online.
- eChecks are sent between banks via the Automated Clearing House (ACH) network.
- eChecks are considered secure alternatives to paper checks but should be considered alongside other payment methods like credit cards, debit cards, and wire transfers.
While paper checks were heavily favored for paying bills in decades past, they’ve fallen out of popular use in recent years thanks to the introduction of other, more secure, often digital, payment methods. One of these methods is an electronic check, often called an eCheck, which is a digital alternative to paper checks that presents a secure and convenient electronic payment option.
You can think of an eCheck like a paper check 2.0. It uses the same information to process a payment but does so in a more secure way by moving the entire transaction online. Here’s what you need to know about eChecks, how they work, and alternative payment options to consider.
How Does an eCheck Work?
An eCheck is a type of electronic funds transfer (EFT). There are several steps to create an eCheck. But the first thing you’ll need to do is open a checking account. Once you have an established checking account with sufficient funds, then you can send your first eCheck.
- You Create the Check
When you create an eCheck online, you’ll begin by entering certain information, like your bank account and routing number, the amount you want to pay, and the person you’re paying. eChecks can be free to create but check with your institution to see if they assess a fee.1 - You Authorize the Transaction
Once the check is created, you’ll need to authorize the eCheck by accepting terms and conditions online, providing a digital signature, or contacting your bank. The authorization process can vary depending on the bank you use. - The Bank Processes the Check
Once your eCheck is sent, your bank will process the payment via the Automated Clearing House (ACH) network. These transactions are encrypted, giving the transfer even more security. - The Funds are Transferred to the Payee
Once the ACH transaction is completed, the person or business you’re paying receives the deposit in their account.
Since eChecks are not yet universally accepted the way other ACH transactions are, it’s important to confirm with your bank and the recipient’s bank that eChecks are accepted before you begin the process.
How Long Does an eCheck Take to Process?
An eCheck is sent instantly, but it can take up to several business days to process. Some banks may process them on the same day, but it can still take a day or two for funds to clear fully. Since eChecks are sent via the ACH network, they may take as long as a standard ACH transaction, like a direct deposit from an employer.2
Pros and Cons of eChecks
There are several positives and negatives to using eChecks, including the following:
Pros of eChecks
- Can be less expensive when compared with paper checks.
- May be less susceptible to fraud than physical checks or in-person payments.
- May be reversible on the same day the transaction takes place.
Cons of eChecks
- Must allow for processing time.
- Can be delayed if there are problems with the ACH network.
eChecks vs. Alternative Payment Options
There are some similarities between eChecks and other payment methods, but also some differences to be aware of as you choose the right method of paying your bills.
Here are several alternative payment options to consider:
Credit Card
A credit card is a cash substitute for purchases or bill payments. When you pay using your unique credit card number, your card issuer sends a payment to the merchant. In turn, they’ll bill you for the amount owed.
Debit Card
While a debit card is similar to a credit card in physical appearance, it works differently behind the scenes. Instead of adding your charge to a monthly statement, using a debit card means the money is immediately withdrawn from your account and transferred to the account you’re paying.
Cashier’s Check
While eChecks can be used for everyday transactions, a cashier’s check may be reserved for large one-time payments, like putting a down payment on a house. A cashier’s check is drawn from the funds of the bank after you transfer the money out of your own account. There are several safety features of cashier’s checks, which sometimes include signatures of bank employees, making them a secure option for sending large sums.
ACH Transfer
An ACH transfer refers to any payments that are processed through the Automated Clearing House network. These include direct deposits from employers to their employees or ACH debits like a recurring bill payment that automatically pulls from your checking account each month. Depending on the bank, ACH transfers can take a few days or as little as one business day to process.
Wire Transfer
A wire transfer is a way to send money domestically and internationally, and they’re can be considered a more secure method of processing payments as long as you know the recipient. It’s important to note that wire transfers often have associated fees, which may be higher for international wire transfers.
Are eChecks Safe?
An eCheck can be considered a safe way to pay and transfer money online. When compared to paper checks, eChecks remove the element of handling a physical document that could be misplaced or even forged.
The Takeaway
An eCheck is a secure, digital alternative to sending or receiving paper checks. They may make sense for people who want to manage their bill payments online instead of mailing a check to cover a utility or credit card bill each month. Before sending an eCheck, it’s wise to review other alternatives, including credit cards, debit cards, and wire transfers, to choose the most effective payment method.
1,2 “What Is an Electronic Check (eCheck) and How Does It Work?,” Experian
Brooke Joly is a writer on a mission to unravel the mysteries of personal finance and make them accessible to the everyday reader. When she’s not behind the keyboard, you can find her enjoying the outdoors in Charleston, SC.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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