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How is an electronic check processed?

Updated: 8/20/2019
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11y ago

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Electronic checks are processed through the ACH network by the Federal Reserve Bank. The company who is scanning the paper check scans it though a machine which will basically capture a picture of the check. It is now stored digitally and is sent to the ACH which takes the funds from the customers account and into the account of who the check is written to. Once its approved, the check can be returned to the customer and marked as void.

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