Initiated Transactions

Check Systems and Electronic Checks

Electronic Check: The term "electronic check" is used to refer to several types of electronic transactions.
• ACH-based electronic check. A payment that begins as a paper check is converted into, or truncated to, an ACH debit entry. The paper check is not processed.
• Electronic network electronic check. A payment that begins as a paper check is converted into, or truncated to, an electronic network entry, using networks such as an ATM network or a credit card network. The paper check is not processed.
• Internet- or telephone-initiated payments. A transaction that is initiated over the Internet or via phone, with the debit carried out by an electronic debit, usually an ACH debit. Some users categorize payments initiated via Internet or telephone but that are effected by paper drafts as electronic checks, even though the debit is paper-based.
• A catch-all term used loosely to refer to any attempt to initiate payment through PCs, the Internet, and computer systems.

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