Business and Personal Finance Dictionary

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