Electronic check conversion

Also found in: Acronyms.

Electronic Check Conversion

A form of payment in which the payer writes the payee a check, but in which the actual funds are debited/credited electronically. The U.S. Treasury has used electronic check conversion to make large payments online.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Electronic check conversion.

Electronic check conversion is a payment process in which you give a payee a check, but the actual payment is processed as an electronic funds transfer.

The payment is automatically debited from your account using the account, routing information, and bank ID information on your check, which is either voided and returned to you or destroyed.

A business must notify you before it uses electronic check conversion to process your payment. Keep in mind that an electronic funds transfer will be completed much more quickly than a check, so it's important to have the funds available in your account before you authorize an electronic check conversion.

As with any other type of electronic funds transfer, you have the right to ask your bank to investigate any errors or misuses.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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RDM has pioneered electronic check conversion systems and web based image and transaction management services for banks, retailers, payment processors and government agencies as well as print quality control and image quality systems for a variety of global customers.
Electronic Fund Transfers, Credit Card Acceptance, Online Bill Pay, Check Guarantee and Electronic Check Conversion are all transactions that can be usually be handled easily by a single service.
Some are front end" products and services that consumers opt for, such as ATM cards and computer banking; others are "back end" technologies used by financial institutions, merchants, and other service providers to process transactions, such as electronic check conversion. Some are tied to a consumer bank account; others are unrelated to a bank account but instead store monetary value in a database or directly on a card.
Our account managers and sales teams can introduce your members to additional products that reduce their operating costs and increase profits, such as interest-bearing accounts, debit card processing, American Express and Discover Card processing, online reporting, check guarantee and verification, electronic check conversion, and secure Internet commerce solutions.
Price Chopper Supermarkets uses electronic check conversion to reduce the costs associated with processing checks.
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It can support electronic check conversion with digital imaging, EBT and credit card processing using Hypercom's Visual HDT (VHDT) C++-based developer's software platform.
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