Virtual Checks

Accepting checks online in conjunction with credit cards can increase your business. Virtual checks, an online payment option rapidly growing in popularity, present some additional challenges. Because this is a non-face-to-face transaction, you can't ask for a driver's license to compare the signature. There is no signature—only the consumer's online agreement.

Despite the widely reported benefits of electronic checks, the banking industry as a whole has been relatively slow to adopt standards that would lead to widespread use of electronic data interchange for checks. 

Accepting a check on your website allows consumers who might not have a credit card to purchase your items.  This can increase your market by at least 10%.  Also by accepting a check online, you do not have to worry about chargebacks.  Once the check clears, the money is yours.  The downside to accepting a check online is that you still have to wait for the check to clear.  A virtual check is the same as accepting a paper check - it could come back marked insufficient funds or stopped payment.  If you do accept checks, give at least one week for the check to clear before sending your merchandise.  Also, make it clear on your website that using a virtual- or e-check will cause delay in shipping.

If you have a membership site, accepting checks is sometimes better than credit cards.  You are usually not out any money.  If a member stop payment on his / her account, you have only lost some bandwidth but no merchandise.  And studies have shown that members tend to keep their memberships even longer when using an online check system.