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E-cheque

Definition

An electronic version or representation of a paper cheque. The account holder writes an e-check (or e-cheque) using a computer or other type of electronic device and transmits the e-cheque to the payee electronically. Like paper cheques, e-checks are signed by the payer and endorsed by the payee. Rather than handwritten or machine-stamped signatures, however, e-checks are affixed with digital signatures, using a combination of smart cards and digital certificates. The payee deposits the e-check, receives credit, and the payee's bank clears the e-check to the paying bank. The paying bank validates the e-check and then charges the cheque writer's account for the cheque.

Synonyms
e-check, electronic note

Alternate Spellings
Echeck, E-check, Echeque

Related Terms and Acronyms

Cheque (CK) — Acronym,
- A written order for payment of a certain amount of money.
➥ Bank account transaction code.
Electronic Cash — Definition,
- Also known as e-cash. A system used to transfer cash over the Internet to pay for goods and service.
Electronic Commerce — Definition,
- The purchase or sale of products and services through an electronic system such as the Internet.
Electronic Funds Transfer (EFT) — Acronym, Important,
- The transfer of money between accounts by consumer electronic systems such as automated teller machines (ATMs), and electronic payment of bills.
➥ Also known as e-Transfer.
Online Banking (OLB) — Acronym, Important,
- Access by personal computer or terminal to bank information, accounts and certain transactions via the financial institution's web site on the Internet. Also known as Internet banking.
Online Bill Payment — Definition,
- A service offered by online banks, usually for a small monthly fee, that relieves consumers from having to write cheques and lick stamps to pay their monthly bills. Online bill payment systems allow people to enter the names of their creditors and the numbers of their utility accounts and pay virtually all routine bills.
Online Debit Card — Definition,
- A method of payment in the form of a card that immediately deducts funds from a person's bank account when used. The card may have a VISA or MasterCard logo on it, or just the name of the bank that issued the card, similar to an ATM card.