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.

The security feature required: authentication, public key cryptography, digital signatures and encryption.

The appear of electronic commerce is encourage to have an electronic check. Electronic checks can be used to make a payment for any transaction since it covers the same law as paper money. It allows business to route payment more quickly. Also, we have first to make sure that enough money is in our checking account before we write the check.

Electronic Check Problems:

Mistake happen. So you need to contact your bank immediately if you find an error because of electronic transaction.