Electronic Check

A form of payment made via the internet that is designed to perform the same function as a conventional paper check. Because the check is in an electronic format, it can be processed in fewer steps and has more security features than a standard paper check. Security features provided by electronic checks include authentication, public key cryptography, digital signatures and encryption, among others.

Also referred to as an "echeck".

Electronic checks have been developed in response to the transactions that have arisen in the world of electronic commerce. Electronic checks can be used to make a payment for any transaction that a paper check can cover and are governed by the same laws that apply to paper checks.

This is the first form of internet-based payment that the U.S. Treasury uses for making large online payments.

Investment dictionary. . 2012.

Look at other dictionaries:

  • electronic check — E com a payment system in which fund transfers are made electronically from the buyer’s checking account to the seller’s bank account. U.K. term electronic cheque …   The ultimate business dictionary

  • Electronic Check Processing — (ECP) is an electronic payment process designed to accommodate the requirements of various consumer and corporate payment applications without the need for a paper check. For consumers, eCheck processing directly debits consumers bank accounts… …   Wikipedia

  • Electronic Check Council — The Electronic Check Council (ECC) is an organization that provides a forum for stakeholders of NACHA The Electronic Payments Association to design, propose, monitor, and promote solutions that enable the conversion of paper checks to electronic… …   Wikipedia

  • Electronic Check Presentment - ECP — A process that allows financial institutions to exchange digital images of checks instead of paper to increase the speed of of the check cashing process. The signing of the Check Clearing for the 21st Century Act by President Bush permitted the… …   Investment dictionary

  • electronic check-out scanner — noun → check out scanner. Also, electronic checkout scanner …   Australian English dictionary

  • Electronic Check Clearing House Organisation —   A US organisation formed in 1990 to provide a forum for organisations involved in electronic cheque presentation (ECP). Current (1992) membership stands at 60 medium and large US banks …   International financial encyclopaedia

  • Check Conversion — A reformatting service offered by banking merchants. Check conversion allows banks to convert paper checks into electronic ones and then send them to the appropriate receiving bank. The electronic check is forwarded on via the automated clearing… …   Investment dictionary

  • Electronic Payment Exchange — Headquartered in Wilmington, Delaware and with offices in Phoenix, Arizona, payment processor [http://www.epx.com/index.html Electronic Payment Exchange (EPX)] emerged as a division of a local bank headquartered in Wilmington, Delaware. The… …   Wikipedia

  • check-out scanner — /ˈtʃɛk aʊt skænə/ (say chek owt skanuh) noun a barcode reader at the check out of a supermarket or other store which records the prices of the items purchased. Also, checkout scanner, electronic check out scanner. –check out scanning, noun …   Australian English dictionary

  • Electronic Cheque Presentation —   Is the electronic transmission of MICR information. This technique greatly accelerates the processing of cheques in a clearing house. ECP relies on sophisticated imaging processing techniques to read the paper cheques and then EDI to transmit… …   International financial encyclopaedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.