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By now, you already understand what an e-check is and how it works. Aside from using an e-check as a mode of payment, more merchants and companies are also using electronic check conversion. An electronic check conversion uses your check to gather information such as your check and account number that identifies your bank. This information is then used to make an electronic payment from your account. Let me give you a brief example. You are in a store and you found an item that you would like to purchase. You decide on paying by check. You hand the check to the cashier. The cashier clerk then runs the check through a machine and hands you a receipt that you need to sign. Afterwards, a record of that copy is given to you. The check will be processed and returned to you marked as void so that it can't be used again. Before your check is used for conversion, you will first be notified that the information from your check can be used to make an electronic payment from your account. Notification can be done in different ways. Electronic Check conversions are processed faster than a normal check. There are also different consumer rights involved in echeck conversion transactions. However, electronic check conversion can only be done once as it is a one-time electronic payment. Using it more than once will only lead to problems because the same check number would appear on your statement. According to the FTC or the Federal Trade Commission, there are a few things that you need to do when dealing with echeck conversions. It is imperative that you keep track of everything that you do: deposits, withdrawals, Electronic Fund Transfer deposits, and so on. This will keep you updated on every kind of transaction that you do. Always balance your account when your statement arrives. Review your entire bank statement. Make sure the amounts are correct and that there is no error. Be careful with any kind of transaction that you make, may it be a phone or online transaction. Make sure that your checks were only processed once. You wouldn't want to end up paying for a transaction twice, would you? Be extra cautious when sharing your bank and checking account numbers. These are very personal information and you wouldn't want to be a part of any scam or fraud. Electronic Check conversions are used mostly by retailers that accepts personal checks as payment for any kind of purchase. Before deciding on using an echeck conversion on your next purchase, do your own research about how it works or go ask your local bank for assistance. Elizabeth Murrow currently works for a payment processing solution company. Being in the business for quite a long time now, she has been continuously sharing her knowledge through various lectures and blogging, including http://allaboutecheck.wordpress.com and http://www.echeckprocessing.biz Born and raised in California, Elizabeth now lives in Australia with her husband and two kids. She likes to travel during her free time. This site provides general guidance and information. It is not intended as, nor should it be taken to be, legal, financial or other professional advice. Please consult with your attorney, financial advisor or trained professional in the area of concern to discuss any legal or financial issues involved with any credit related decisions. We are not responsible for 3rd party site content. |