What does the term 'E-Check' refer to?

The term 'E-Check' refers specifically to the digital equivalent of a paper check. It is a form of electronic payment that allows individuals and businesses to send and receive money using bank accounts, similar to how traditional checks operate but through electronic means.

With E-Checks, the payer authorizes the electronic transfer of funds directly from their bank account to the payee's account, streamlining the process and often speeding up the transaction when compared to traditional check processing. This method retains the check's fundamental characteristics but enhances convenience and efficiency through digitization.

The other options do not accurately capture the essence of what an E-Check is. An online platform for money transfers might encompass a broader range of electronic payment systems, which would include services beyond the specific mechanism of an E-Check. A method of exchanging currency digitally could refer to various forms of digital currency transactions, not limited to check-like transactions. Similarly, an electronic system for tracking checks overlooks the fundamental aspect of E-Checks as a payment method.