Define "E-check" in relation to the ACH network.

An E-check refers to an electronic version of a paper check. In the context of the ACH network, E-checks are processed electronically, allowing funds to be transferred from one bank account to another without the need for paper checks to be written, signed, or physically deposited. This electronic method leverages the infrastructure of the ACH system, making transactions faster and more efficient compared to traditional check processing.

E-checks offer several advantages, such as lower costs associated with processing and a reduced risk of fraud since they do not require physical handling. Additionally, they help streamline the payment process, allowing for quicker access to funds for both the payer and the payee. By converting paper checks into electronic transactions, E-checks contribute to the overall modernization and efficiency of payment systems.