While ACH funds usually took 3-5 days in the past, the National Automated Clearinghouse Association (NACHA) National Automated Clearing House Association (NACHA) The National Automated Clearing House Association (NACHA) is in charge of administering, developing, and governing the ACH Network. Funds usually take around 3-5 business days to transfer once the ACH transaction is initiated. It happens automatically, and a payment receipt is also sent to the payer. Payment confirmation and fund transfer: The payment is withdrawn from the payer’s bank account and is deposited in the payee’s bank account.Finalizing the payment: Once all the relevant details are entered, the information is submitted, and it starts the ACH transaction process.Setting up the payment: Payment information is fed into the online payment processing software.Requesting authorization: The payee needs to get authorization from the payer to make the transaction.Listed below are the steps involved in processing an electronic check: As the process is carried out online, paper, as well as time, is saved while transacting using e-checks. The processing of electronic checks is similar to processing paper checks, but it is done faster. They use the Automated Clearing House (ACH) network to process payments.E-checks are considered more secure than paper checks as they use components such as authentication and encryption.It is processed in fewer steps and is more cost-efficient. E-check is a form of online payment that performs the same function as a paper check.

Components of a check