What are PayPal eChecks?

A PayPal eCheck is a payment instrument that is directly made from a bank account. The echecks payment system is quite secure, fast and it has the all the processing facilities of the electronic transactions.

It also has all the facilities of the developed legal infrastructure and business processes which is associated with paper checks. This has made it very popular for major transactions.

How is an eCheck different from a Paper Check?

The working of an eCheck is quite similar to that of a paper check. The small differences are mentioned below:

• The account holder writes the eCheck using any of the electronic means and gives it to the payee electronically.
• The payee receiving the echeck deposits the check in his account and the amount is credited. The payee’s bank will clear the check to the paying bank.
• The paying bank (the account holder’s bank) is charged based on the amount of the echeck.

Advantages of an eCheck

For the buyer:

1. Giving an eCheck means that the money is left in his account for some more time. This gives him chance to earn an extra interest without the debt of a credit or a debit card.
2. No other paypal fees for sending echecks.

For the seller:

1. He receives an email notification about the payment.
2. The seller is assured of his payment without any doubts about fraud or cheating from the buyer.
3. The seller can view his transaction on the paypal account and till he receives his payment, he need not ship the item to the buyer.

Limitations of an eCheck

The main and only disadvantage is with an echeck is the time factor. The seller receives his payment only after 3 or 4 days.

Salient Features of an eCheck

1. It contains the same information as that of paper checks.
2. It is based on the same rich legal structure as that of the paper checks.
3. It can be linked with unlimited informations and exchanged directly between the parties.
4. It can replace the paper checks in remote places also.
5. It enhances the features and functions provided by the bank checking account.
6. It increases the usefulness of paper checks by providing value added information.

How to Send an eCheck?

When a person wants to make a payment with an echeck, he has to first link his bank account to the PayPal account. There is a format to be filled and submitted, this creates the pay pal echeck which is then sent to the seller.

Is an eCheck safe?

An eCheck combines the best paper and electronic law and regulations. The features which assure the user of its safety are

1. eChecks are based on check law and follow the characteristics of paper check. This can be included in the account agreement itself.
2. eChecks provides the consumer with protection and rights from the regulation, which limits liability and maintain timeframes.
3. eChecks reduce the risk of loss for both the bank and their clients as they follow the security technology.

The following security technology is followed in the back end so that the echeck cashing process is absolutely safe:

• Public key cryptography
• Digital signatures
• Certificate authorities
• Authentication
• Duplicate detection
• Encryption

Why PayPal eChecks?

eChecks meet the real business requirements and it is based on the paper checks. It has all the features for providing, controlling and evolving a payment mechanism only through banks. Hence it has the potential to lead the electronics commerce environment for business.

Thus paying by eCheck is easy to use and process, easy to understand, and it is entirely safe.