A Web-based platform for businesses and individuals to send and receive electronic checks is being pitched as an alternative to typical online bank account transfers.
The technology was developed through a partnership with VerifyValid and Deluxe Corp. It reduces the costs associated with paper-based processes, while still allowing users to print paper when they need to, its developers explained during the Finovate conference ongoing this week in New York City.
The platform differs from online Automated Clearing House transactions because payment recipients do not have to provide senders with their account and routing numbers. Likewise, the e-check uses security and deposit features that validate the check payment without requiring senders to distribute paper checks printed with their account information.
The technology is targeted to small businesses and integrates with users' existing accounting software, says VerifyValid CEO Paul Doyle. Financial institutions can also offer the check writing service to their customers.
Recipients of the e-checks can deposit the checks electronically. The technology includes online tools to validate payments if a user chooses to print the check and deposit it at a bank branch.