choosingpeace
15:38
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
e-check
Read a random definition: retail installment sale
A quick definition of e-check:
An e-check is a type of payment that works like a regular check, but it's done electronically. Instead of writing on paper, you give your bank information to the person you're paying, and they use it to transfer money from your account to theirs. It's a quick and easy way to pay for things without having to use cash or a credit card.
A more thorough explanation:
Definition: An electronic version of a paper check that is supplied by a consumer to a payee (usually a merchant) who uses the check to make an electronic funds transfer. The payee electronically scans the check's magnetic-ink character-recognition coding to obtain the bank-routing, account, and serial numbers, then enters the amount of the check. This is usually, but not always, done at a point-of-sale terminal.
Example: A customer goes to a store and wants to pay for their purchase with a check. Instead of writing a paper check, the customer hands the merchant an e-check. The merchant scans the check's information and processes the payment electronically.
Explanation: An e-check is a digital version of a paper check that allows for electronic processing of payments. The customer provides the necessary information on the check, and the merchant can process the payment without having to physically deposit the check at a bank. This method is faster and more convenient for both parties involved.