An electronic cheque, also called an e-cheque, represents a form of payment created and submitted over the internet. If your business has an online point of sale system or e-commerce portal that accepts e-cheques, your clients simply need to enter their bank account number, transit number, and the amount they want to pay.
How Electronic Cheques Work
After your software processes the e-cheque, your computer program passes it on to your bank for further processing. Your bank contacts your customers’ bank, and the funds transfer from their account to yours. Both banks validate the funds electronically when the institutions add or subtract funds based on the payable amount.
The process of an e-cheque follows a similar one to writing and cashing a paper cheque except it all happens electronically. Like paper cheques, the payer authorises the e-cheque and your business endorses it. Rather than a printed cheque with handwritten signatures, e-cheques use digital signatures that operate via smart cards and digital certificates.
Safe and Secure Electronic Cheques
For e-cheques to work, your computer system and accounting software must meet security requirements so your customers can transmit information securely from their payment system to yours. That’s where secure online payments from QuickBooks Online come into play. When you send an invoice with an online payment option, customers know you can accept credit cards, debit cards, ACH transfers, and e-cheques as a fast, safe, and secure payment method.
Having a variety of payment options available to your online customers gives you multiple ways to close the sale. While the majority of people mainly use debit and credit cards for shopping online, some old-school consumers prefer to use cheques, so providing them with an e-cheque option makes them more likely to shop at your business. More than 4.3 million customers use QuickBooks. Join them today to help your business thrive for free.