Although technology has afforded us many wonderful things, among them the ability to transact online instantly and effortlessly, it is not without its downsides. The one worry that many online users today share regarding technology and making payments digitally is the element of security. Is it safe to make payments online?
Even when you think you've secured yourself or your financial institutions are secure, here comes another cyber threat. Cyber thieves and hackers have shown how savvy they can be when it comes to digging into your personal information. So when eCheck payments are introduced, are they a safer or better option than going about it the traditional way?
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Isn't It Better to Use A Credit Card?
eChecks and credit cards may sound like the same thing, but there is a difference. The biggest difference is that eChecks use the Automated Clearing House (ACH) network to transfer their funds. Unlike credit cards that use card networks, processing fees with ACH networks are much lower. There is no interchange fee either, and with eChecks, merchants and businesses can accept large payments or regular recurring payments. You could still have your information stolen, even if you're using a credit card. The first level of security with eCheck payments is the authentication factor.
eChecks have a lot more protection factors in place than credit cards do. Unsplash
How Are eChecks Safer?
When you use an eCheck during the check-out process, several security components at work ensure your transactions are as safe as possible. This is essential when dealing with large sums of money, as eChecks would allow you to. The first level of security with eCheck payments is the authentication factor. The payment provider must verify the individual that is submitting the account information. This ensures that the business will be well and truly protected from those who hope to get away with fraudulent payments.
The next level of security is the encryption factor. All ACH networks utilize encryption. This masks your sensitive data, and this means that even if would-be thieves stole your information, it would be useless to them. Public key cryptography also adds an extra measure of security. This ciphers the data and protects it while it is being transmitted electronically.
The next level of security is the encryption factor. Unsplash
Of course, you still must sign for your eChecks digitally, and this makes it the next key point in the security factor. All digital signatures come with a time stamp, and this timestamp is part of the encryption process. Doing it this way ensures that your transactions are impossible to duplicate. It gives the merchant peace of mind knowing that they will not become a victim of fraud.
eChecks also have digital certificates like the SSL Certificate issued to them. This ensures that information is protected, communication is secure, and all transactions are encrypted. Moreover, eChecks and ACH networks have a system to employ a fraud detection strategy. This system will monitor checks for duplicate transactions and flag anything that looks suspicious.
eChecks have a lot more protection factors in place than credit cards do. Where large sums of money are involved, eChecks are the preferred payment method.
(Disclaimer: This is a sponsored article and includes some commercial links.)