Digitalization has increasingly been implemented into all sectors, and banking is no exception. From only receiving and issuing banknotes and coins, banks are now using all kinds of electronic instruments.
One of these electronic instruments that have been talked about the most lately is electronic checks. But, being electronic and relatively new for some, many are wondering how to cash them.
How to cash an electronic check?
The only difference between cashing an electronic and paper check is that you can cash the electronic check online without going to the bank. Although, several entities offer the latter option, even for paper checks.
Cashing an electronic check online
To cash an electronic check online, you only need to enter the platform designated for this type of cash. You may be asked for different data or processes depending on the platform.
Another online payment option is through a PayPal account. To make payments through this method, you only need to download an application called “Ingo Money.”
After downloading the application, you must request the electronic check collection, and the application will request an image of the electronic check. You will then make the deposit directly to your PayPal account.
Cashing an electronic check-in person
There are several ways to cash an electronic check in person. The most common is to go directly to a bank with the pre-printed check.
The check must have been printed just like any other copy of a document and must be handed to the cashier in charge of processing it. The cashier may ask you for some information to verify your identity.
After providing all your data and confirming the check deposit, you can cash the electronic check a few business days later. Because, even though it is electronic, it requires processing.
Can electronic checks be cashed?
There is one essential point to keep in mind when discussing electronic checks. Created these checks to transfer money from the sender’s account to the payee’s account.
Unlike physical checks, with an electronic check, you don’t even have to show up to cash it. The entire process is done digitally, from the check preparation to its processing and cashing.
Therefore, in exact terms, it is not possible to cash an electronic check. Since the entire process of issuing and receiving the check is done electronically, there is no breakpoint for cashing the check.
Even so, all is not lost. It is only necessary to resort to a little logic when faced with the impossibility of cashing electronic checks.
To cash a check for cash, you can only resort to the traditional way: wait for the value of the check to be deposited in your account to make the cash withdrawal just as you would with any other check.
What are the benefits of electronic checks?
One of the greatest benefits of electronic checks is the speed of processing. While traditional checks usually take 3 to 5 business days, e-checks are generally ready the next day.
The waiting time to receive the money from the electronic check may vary according to each entity. Although the company may offer a wait time of several days, the electronic check is usually deposited much faster.
In addition, the conditions for processing are much lower than the fees for cashing a debit or credit card. The fees for an electronic check are usually no more than a few cents.
Electronic checks are ideal for companies that handle large amounts in their transactions due to the lack of a limit for processing and cashing.
No matter how high the value of the electronic check to be cashed, you can always deposit it normally. The only problem with collecting high-value checks is insufficient funds in the sender’s account.