An emailed check (digital check) is a digital version of a regular check sent and received through email. Emailed checks offer faster processing times and enhanced security, making them a better option for many entrepreneurs.
An emailed check can be deposited at your local bank or uploaded remotely through online banking. While digital checks have numerous benefits, they also rely on technology that comes with a few security concerns that users should know.
Learn the pros and cons of emailed checks and how to deposit them so you can bring your business into the digital era.
Accepting emailed checks offers you several benefits, including fast, reliable, secure, and easy-to-reissue payments. Emailed checks are more environmentally friendly than paper checks.
Fast and Reliable
Emailed checks allow you to receive your money almost instantly. For businesses, this improves cash flow and accounting. It also allows you to pay your expenses, such as inventory, rent, or wages, without waiting for paper checks to clear another company’s banking institution.
Easily Reissued
Although you can accidentally delete the email containing your digital check, the reissue process is much more straightforward than paper checks. You can simply reach out to the payer to request a new digital item.
Secure
Emailed checks go through steps of authentication and encryption to conceal your sensitive data, so even if a third party intercepted your check, they would be unable to decrypt the information it contains.
Additionally, checks sent electronically are time-stamped with a digital signature, so there is a record of when and where the payer sent the original check.
Although the advancement of technology has led to more convenient payment processing, it has also introduced new security concerns. While it is generally safe to send and receive emailed checks, the process is not risk-free.
Security Breach or Cyberattack
With modern technology, there is always the risk of a cyberattack or information leak. If your computer or smartphone gets stolen or compromised, a third party could theoretically access your finances or banking details and use that information against you.
However, strong encryption and advanced security measures significantly reduce the chances that a third party would be able to access your banking information.
Fake Check
As with paper checks, emailed checks can be counterfeit. Look for the following signs of a fake check:
- Very high-quality image. Fabricated checks are created using image processing software, giving the check a crisp, high-quality look.
- The check number in the top right corner is not the same as either the first or third number on the magnetic ink character recognition (MICR) line.
- There is no bank logo or bank name on the top left.
- The MICR line does not contain the routing and account numbers.
When receiving an emailed check, you may wonder if your bank accepts emailed checks. The answer is yes. Most banks accept emailed checks. Checks sent through email can be printed and deposited just like paper checks, either at your bank or through an online banking app.
How to Print Checks From Email
You’ll need access to a printer to print out emailed checks. You can use regular printer paper, but you might consider buying specialty check stock paper if you plan to have recurring digital payments.
You must use magnetic ink if you plan to deposit the check at your local bank or ATM. Bank devices and ATMs read the magnetic ink to obtain the payer’s account number. Without this ink, the bank cannot process the check.
The quality of the check image affects whether or not the bank accepts your check. The institution may not accept the check if any lines are blurred or smudged. For a bank to consider a check valid, it must contain:
- Routing number
- Account number
- Payee’s name
- Written payment amount
- Date with signature
When you print your check, ensure all the words and numbers are easy to read so you don’t have to go back and reprint it.
How to Deposit Checks From Email
Once you have the printed check, you can deposit it using an online banking app or at the bank itself. You can take the check to your bank and deposit it with a teller or the ATM like a normal paper check.
Most major banks also offer an app that allows you to instantly deposit scanned checks by taking a picture of them. You can use this app to deposit your printed check or the digital version. Some services allow you to instantly deposit emailed checks by entering your banking information into a secure online form.
There will always be a security risk when sending or receiving a check over email, but the benefits generally outweigh the drawbacks. Keep the following tips in mind when accepting an emailed check.
When you print out your check, print an extra copy for your files in case you need to refer to it later. If you keep track of your finances using a banking app or spreadsheet, record the check amount and date of deposit. These actions help you understand how long the process takes.
If you use mobile deposit, log into your banking consistently to verify that the money from your check is in your bank account. Call your local bank if the funds do not show up in a day or two.
