In a move that spells bad news for the postal service and paper checkbook manufacturers (but good for the earth), California-based Checkbook is launching its digital check service to the public.
Sending a check is easy. The user enters the recipient’s name, email address, and the amount to send. Next, the sender enters their own email address and online bank login credentials, and confirms the amount to send.
The payee receives an email with the check and has two options for depositing the money:
- Option 1: Print the check and deposit it like a normal paper check
- Option 2: Deposit the money digitally by entering their online banking login information
Individual users can send up to 50 checks per year for free on the Checkbook website. However, the service is more geared toward businesses, who can make requests to send or receive checks by integrating Checkbook’s API into their website using Sandbox, Production, or Python code. Businesses pay $1 per check, and in exchange benefit from advanced security and the ability to send and receive multiple checks at once.
The service is compliant with Check21 and does not store user’s bank account number or login credentials on its own server, but connects using a third party API.
Checkbook’s founder PJ Gupta presented the APIs at FinDEVr San Francisco 2015.