What is an Electronically Created Item (ECI)?

An Electronically Created Item (ECI) refers specifically to a check that is generated electronically and not in paper form. It represents a digital version of a traditional check, enabling the transaction to occur without any physical documentation. This procedure aligns with modern payment systems that prioritize efficiency and streamline the payment process, reducing the reliance on paper and the associated handling costs.

In the context of payments, an ECI maintains the essential characteristics of a check—namely, it is a draft drawn on a bank account designed to be processed through electronic channels. This is a significant evolution in check processing where businesses can create checks directly from their accounting systems and submit them electronically, which enhances speed and security in transactions. Overall, this definition emphasizes the transition from traditional paper checks to electronic alternatives, reflecting advancements in financial technology.