Electronic Check Presentment - ECP

AAA

DEFINITION of 'Electronic Check Presentment - ECP'

A process that allows financial institutions to exchange digital images of checks instead of paper to increase the speed of of the check cashing process. The signing of the Check Clearing for the 21st Century Act by President Bush permitted the use of electronic check presentment (ECP). Electronic check presentment saves financial institutions the cost of sending checks and the storage of those checks, in addition to better customer service.

INVESTOPEDIA EXPLAINS 'Electronic Check Presentment - ECP'

The main benefits of the electronic check presentment are faster check clearing and the potential to detect check fraud or insufficient funds at an earlier stage. Also, with digital images, security is a main concern and therefore digital images use strong digital signatures for authentication.



RELATED TERMS
  1. Bill Presentment

    The submission of a bill of exchange for payment. A bill, such ...
  2. Electronic Bill Payment & Presentment ...

    A process used by companies to collect payments via the internet, ...
  3. Automated Clearing House - ACH

    An electronic funds-transfer system run by the National Automated ...
  4. Electronic Check

    A form of payment made via the internet that is designed to perform ...
  5. Check Clearing For The 21st Century ...

    A federal law that took effect on October 28, 2004, and gives ...
  6. Float Time

    The amount of time between when an individual writes and submits ...
Related Articles
  1. Credit & Loans

    The Evolution Of Banking

  2. Insurance

    Your First Checking Account

  3. Options & Futures

    Choose To Beat The Bank

  4. Insurance

    Life After Bankruptcy

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center