Electronic Check
A form of payment made via the internet that is designed to perform the same function as a conventional paper check. Because the check is in an electronic format, it can be processed in fewer steps and has more security features than a standard paper check. Security features provided by electronic checks include authentication, public key cryptography, digital signatures and encryption, among others.
Also referred to as an "echeck". Investopedia Says:
Electronic checks have been developed in response to the transactions that have arisen in the world of electronic commerce. Electronic checks can be used to make a payment for any transaction that a paper check can cover and are governed by the same laws that apply to paper checks.
This is the first form of internet-based payment that the U.S. Treasury uses for making large online payments. Related Terms:
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Certified Check
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Substitute Check
Traveler's Check |