Electronic Check
 |
Definition of '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 explains 'Electronic Check'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 Definitions
Articles Of Interest
-
The Beauty Of Budgeting
Make it to the end of the month, before you run out of money. -
Shopping Online: Convenience, Bargains And A Few Scams
Shopping from the comfort of your couch has major benefits - and some unpleasant side effects. -
What are the advantages and disadvantages to dealing with internet-only banks?
In recent years, large companies have set up internet-only banks as a means of diversifying into the financial sector and providing personal banking services. For a company, the greatest advantage ... -
The Money Market
If your investments in the stock market are keeping you from sleeping at night, it's time to learn about the safer alternatives in the money market. -
Retail Banking Vs. Corporate Banking
Retail banking refers to the division of a bank that deals directly with retail customers. Also known as consumer banking or personal banking, retail banking is the visible face of banking to ... -
Introduction To Commercial Paper
Commercial paper is a short-term instrument that can be a viable alternative for retail fixed-income investors looking for a better rate of return on their money. -
The Role of Commercial Banks in the Economy
We interact with commercial banks daily to carry out simple financial tasks. That said, the function and creation of a commercial bank is anything but simple. -
Banker's Acceptance 101
A banker's acceptance, a common way of financing international trade activity, provides a relatively safe, short-term vehicle for investors. An acceptance is a negotiable time draft that a bank ... -
Financial Career Options For Professionals
Find out if spreading your wings to try a new career will make you soar or fall flat. -
If I want to have some cash in a liquid account for unexpected emergencies, what is best? A savings account or another type?
It's always a good idea to keep some money set aside in a liquid form, but it's a double-edged sword, because the more liquid your money, the less it's earning. If you never have an emergency, ...
Free Annual Reports