E-check is based on the idea of electronic documents instead of paper, and passkey signatures in place of open handed wet signatures. For this reason, e-check will create a new payment instrument, along with legal regulations, where it will withdraw the paper without the need for regulatory and commercial changes to the new payment instrument. Even e-check borrowers are designed to be compatible with today’s check applications and systems with minimum impact on buyers, banks and financial system.
Figure 3: Basic Schematic of E-Check Source: Anderson, 1998: 2 Figure 3 shows the normal process flow of e-check. The Borrower shall prepare an e-check electronic document using the information that must be in paper form and sign it by electronic signature. The creditor takes the e-check with various methods, approves the authenticity of the electronic signature of the debtor, processes it for payment, signs the payment. The creditor’s bank approves the electronic signatures of the debtor and the creditor, writes the money to the creditor’s account and directs the check to the settlement and settlement system. The bank of the debtors approves the electronic signature of the debtor and withdraws the money from the debtor’s account. When the reality of hand signatures is seldom interrogated, electronic signatures are approved at every transaction. E-Check was created using FSML (Financial Services Markup Language), a method expressed using SGML (Standardized Generalized Markup Language) because it contains mandatory and optional mandatory and signed information. SGML is a standard language for identifying formatting languages. SGML is an international standard for describing the different contents and structures of electronic documents. The structure of the document and the data items for E-checks are restricted by similar formatting marks in HTML (Hyper Text Markup Language), another language defined using SGML.
Benefits of E-Check System
The e-check system is the way to pioneer ecommerce for businesses and consumers. E-check implementation is inevitable to succeed. Because e-check really meets the needs of the business world and has been developed as a system based on the paper check system. For this reason, e-check is a system that eliminates the disadvantages of the paper check application, which is a payment instrument in the payment system. With the e-check system, the debtor, the creditor, and the bank, which are parties to e-check, provide many benefits. This section explains how the e-check system works between the parties and will focus on the benefits provided by the e-check system. Before examining the benefits that are provided to the parties, it is possible to summarize the contributions made in the general sense in the following headings; ?? Increasing revenue, Increasing decision processes, Improving the quality of decisions, Reducing credit risk, Representing customer requests, Reducing transaction costs, Combining automatic credit decision and customer analysis, Reducing maintenance costs of systems, Increasing efficiency of transactions, To increase the safety and speed of communication. Borrower and creditor systems are used to write e-checks, verify e-signatures, turn over e-checks and prepare deposits to be transferred to the bank. It also provides network and directory interfaces for connections. In addition, it provides mechanical interfaces to accounting systems, enabling automatic processing of invoices, money orders and payment notices.