Technological changes introduced new methods for sending money online. The process of sending money online is called as EFT (electronic funds transfer). EFT payment allows people to transfer funds from their bank account to another bank account. This transaction will be done only one secure internet lines. Banks use secure medium for transferring online funds, so that there won’t be any fraud transactions. EFT is protected by the Law of electronic fund transfer systems. This system provides proper guidelines and tips for customers, having online bank accounts.
Signing a check and giving it to other person is simple but that person takes time in withdrawing money from your bank account. This is because check processing is not an easy task. In order to solve this problem government of USA invented special network for e-checks processing. Digital processing allows you to send online e-check to other person. Later that person can use ACH processing technique and withdraw funds from your bank account. Automated clearing house is network of USA. It allows people to directly deposit and withdraw funds from bank accounts.
People generally prefer echecks because they reduce operating costs. For processing of echecks banks charge only few dollars. In e-check processing, a person collects check details on paper and later withdraws that amount from customer bank account.