What is an Electronic Check Transfer?

An Electronic Check Transfer occurs when a merchant or vendor uses the information on a customer’s personal check to immediately remove the payment from their checking account. It works the same as a debit card transaction when used with a PIN.

If making a purchase in a store, the check is processed, voided, and returned to the customer. If the customer has mailed the payment, the canceled or voided check is not returned. The transaction is recorded on the merchant’s monthly bank statement with the check amount, the check number, and name of the vendor or merchant.

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