E-cheques – The e-cheques consist five primary facts. They Are consumers, the merchant, consumer’s bank, the merchant’s bank and the e-mint and the clearing process. This cheaquring system uses the network services to issue and process payment that emulates real word Chaquing. The payer issue a digital cheaques to the payee and to the entire transactions are done through internet. Electronic version of cheaques are issued, received and processed. A typical electronic cheque transaction takes place in the following manner :

  1. The customer accesses the merchant server and the merchant server presents its goods to the customer.
  2. The customer selects the goods and purchases them by sending an E cheque to the merchant.
  3. The merchant validates the e-cheque with its bank for payment authorisation.
  4. The merchant’s  electronically forward the e-cheque to its bank.
  5. The merchant’s Bank forward the e-cheque to the clearing house for cashing.
  6. The clearing house jointly works with the customer’s bank clears the cheque and transfers the money to the merchant’s banks.
  7. The merchant’s bank updates the merchant’s account.
  8. The customer’s bank updates the customer’s account with the withdrawal information.

That e-chequing is a great boon to big corporate as well as a small retailers. Most major banks accept e-cheque. Thus this system offers secure means of collecting payments, transferring value and managing cash flows.

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