Although a Digital Check is not a concept unique to Checkbook, the properties of a Digital Check within the Checkbook system is as follows in the table below. A primary difference is that a Digital Check can be sent to somebody's email address.
An eCheck is an industry standard term that describes a payment method of sending checks in an electronic form.
|Digital Checks are digital representations of Paper Checks and can be settled using the Check21 or ACH network.
|eChecks have traditionally been a way to do ACH payments, by truncating the Routing Number and Account Number from a Paper Check.
|Designed to use Online Banking to instantly verify a Bank Account.
|Cannot verify a Bank Account instantly and must type in Account & Routing information for manual verification.
|To send a Digital Check, you just need the recipient's email. The recipient will verify their Bank Account themselves and this sensitive information will be encrypted.
|To send an eCheck, you must know the Routing and Account Number of the recipient. This involves storage of sensitive information and a payment cannot just be emailed.
|Digital Checks have the capability of verifying if the Sender has enough funds to cover the check amount.
|eChecks cannot verify this, thereby, making the Recipient more vulnerable to Bounced Checks.