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ACH eCheck
ACH eCheck is the electronic equivalent of a paper check. The check writer submits either a voided paper check or a set of checking account and routing numbers to their financial institution to be electronically converted and filed for use as eChecks. When an eCheck is "written", funds are simultaneously authorized and transferred between financial institutions through the Automated Clearing House (ACH) Network, and the funds appear in the payee’s account after the eCheck has cleared through the receiving bank.
Due to limitations of the original ACH network, eChecks became electronically possible in 1995 and remain a relatively new payment method. While increasing numbers of financial institutions begin to offer ACH eCheck each year, eChecking may not be available through every bank. eChecks are dependent on the ACH Network and its relationship to the US Treasury and other Government Agencies, and ACH eChecks are typically available only to holders of checking accounts based in the United States as a result.
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