Hypur uses Automated Clearing House (ACH) transactions as a payment solution. But when we say this, we’ve noticed that sometimes people interpret that to mean something different to what we actually do. So let’s clear up some confusion and highlight how an e-check works compared to Hypur Pay.
An e-check, also known as check truncation or check conversion, is an electronic version of a check. You might have first experienced this at a local retail chain. You could write a check and they would push the check through a scanner. That scanner would read the account and routing number and convert the check into an electronic transaction. The teller would then stamp the check as paid and give it back to the consumer.
Similarly, when you pay for some services online, you may be prompted to provide your bank account number and routing number. By doing so, you’ll authorize an e-check transaction.
Sometimes, people still get paper checks. When you deposit them electronically, that’s called Remote Deposit Capture. You’ll be prompted to sign the check and then scan or photograph the front and back of the check. This does not make it an e-check.
Hypur does direct account-to-account transfers. When a new user signs up, we capture all the person’s information so that merchants don’t have to. This means that we already have their checking account and routing numbers, and the transaction is handled behind the scenes. You do not have to worry about obtaining a check from your customer, or if they have given you the correct information. Hypur’s technology helps to ensure that the account information used it accurate.
The beauty of our system is the speed of transactions, and that the consumer can shop at any participating merchant without keying in their personal information. Hypur uses bank-level security and encryption to ensure that everyone’s information is kept safe. The merchant doesn’t need to obtain or store their banking details. The same goes for B2B payments, which are streamlined using Hypur.
What Is the Difference?
There is a range of ACH transactions. Even though all of them involve taking money out of one account and putting it in another, the ACH network uses specific codes to distinguish between the types of transactions. For example, if you’re doing a B2B payment, that ACH payment uses a commercial transaction code. Alternatively, if you are doing a retail dispensary transaction, the ACH payment will use a point of sale (POS) code. E-checks have a different type of code. Just because the payments occur on the same rail doesn’t mean the codes are the same.
You may notice that e-checks can sometimes take a while to reflect in your account, but using Hypur, your payments are processed much faster. Depending on your bank or credit union, you could get your funds within 24 hours.
The Hypur payment platform also makes it easy to track your payments. Whether you’re sending or receiving money, you can easily see transactions and predict your expected cash flow.