What Is an eCheck? How eCheck Payments Work (2026)

An eCheck is a type of electronic payment in the US where money is transferred between bank accounts using the Automated Clearing House (ACH) network.

Americans made 47 monthly payments on average in 2025, according to The Federal Reserve, six of them via the ACH.

Accepting eChecks gives customers another way to pay a business directly from their bank accounts. In a 2026 survey from Baymard Institute, 9% of US online shoppers said they abandoned an order recently because the site didn’t offer enough payment methods.

What is an eCheck?

An eCheck—also written as “e check” and sometimes called a digital check—is an electronic payment that moves money from one bank account to another account through the ACH network.

It works similarly to a paper check. The payer authorizes the transaction through an online form, checkout page, or recurring payment agreement. A payment processor then submits the information, including bank account details, to the ACH network.

Common use cases include recurring bills, subscriptions, rent, and tuition. Businesses can also accept eChecks for sales invoices and high-value purchases like wholesale inventory orders and equipment purchases. 

How are eChecks processed?

An eCheck is a type of ACH debit. Banks and payment processors exchange eCheck instructions through the ACH network. No physical check has to be mailed or delivered to a bank.

Here are the four stages of eCheck processing in ecommerce:

1. Authorization

The customer gives the retailer permission to debit their bank account. Customers can authorize a payment through an online checkout, signed form, or recorded phone agreement. 

To make recurring payments, customer authorization may cover later debits made under the agreed schedule and terms.

2. Capture

The retailer or payment processor collects the customer’s bank account number, routing number, payment amount, and authorization record.

An online checkout or invoice portal sends these details to the payment processor after the customer submits them. For recurring payments, the processor also records the payment schedule.

3. Verification

The payment processor checks the routing and account information and applies fraud controls. For online ACH debits, Nacha requires account validation. A processor can validate an account through ACH prenotification entries, microdeposits, or third-party validation services.

Verification does not confirm that the account has enough money to cover the payment. An eCheck can still be returned after submission because of insufficient funds, a closed account, or a blocked debit.

4. Clearing and funding

The ACH facilitates the transfer of funds. Once payment is approved, the customer’s bank account is debited, and the transaction is made.

Nacha, the organization that manages the ACH, estimates 80% of network volume is settled in one banking day or less. Businesses often cite a two-to-three-business-day window to cover processing and funding timelines.

For example, Shopify ACH Direct Debit payments for B2B orders can take up to four business days to process. After settlement, the funds follow the shop owner’s Shopify Payments payout schedule.

How safe are eChecks?

eChecks are generally safe when a reputable payment provider processes them. Electronic processing reduces the risk of a paper check being lost, stolen, or altered. eChecks are not guaranteed payments, so merchants still face fraud and return risks.

The 2026 Global eCommerce Payments & Fraud Report, created by the Merchant Risk Council and Visa, found that 3.5% of accepted ecommerce orders were fraudulent, up from 3% in 2025.

Five measures protect eCheck payments:

• Authorization. The customer gives the merchant permission to debit their account. The merchant keeps a record of that authorization.
• Account validation. The payment processor checks the routing and account information. Nacha requires fraud detection and account validation for online ACH debits.
• Encryption and access controls. Reputable payment processors encrypt sensitive bank information and restrict access to it. Nacha requires ACH participants to protect payment data throughout its life cycle.
• Fraud screening. Payment processors can flag duplicate transactions and unusual payment activity. Nacha’s 2026 rules require risk-based procedures for identifying suspicious ACH entries.
• Return and dispute rights. A customer’s bank can return an entry that it cannot process. Consumers also have rights under Regulation E when an unauthorized electronic debit appears on their account.

An eCheck can bounce if the account doesn’t have enough money. eChecks may also be denied for incorrect account information, closed accounts, stop-payment orders, or disputed authorization.

It may be wise to treat a pending eCheck as unpaid until the processor confirms it.

Legal disclaimer: This information is for general educational purposes only. It is not legal or financial advice. Consult a qualified attorney and your payment provider for guidance on Nacha rules, Regulation E, and state law.

eChecks pros and cons

Paper checks create work before a bank processes the payment. The merchant has to receive the check, record it, and deposit it. 

An eCheck sends the payment information to a payment processor electronically. Merchants still face delays, returned payments, and fees.

The table below shows the pros and cons of eChecks. 

Should you accept eCheck payments?

Accept eChecks when customers regularly ask to pay from a bank account. Review processing time, return risk, and fees before accepting them. Keep in mind, eChecks are non-guaranteed payments. An eCheck adds a payment option for customers who do not want to use a card.

Best practices for accepting eChecks

• Explain the processing time before checkout.
• Keep the order pending until payment clears.
• Record the customer’s payment authorization.
• Publish your return and refund policies.
• Review processing, return, and dispute fees.
• Monitor returned payments and unusual account activity.

How to accept ACH payments with Shopify

Shopify Payments offers ACH Direct Debit for eligible B2B orders. The store must be based in the US and accept USD. It also needs more than 100 fulfilled orders, an active paid plan, and completed identity verification. 

The customer needs a US bank account. ACH Direct Debit is not available for in-person sales through Shopify POS.

To activate it:

1. Go to Settings > Payments.
2. Find Shopify Payments and select Manage.
3. Select Manage payment methods.
4. Under Local payment methods, activate ACH Direct Debit.

Orders are marked as Pending until the payment is fully processed, which can take up to four business days. Shopify pays the funds according to your payout schedule after settlement.