Final answer:
The server authenticates the customer and verifies with the bank that funds are adequate before the purchase.
Step-by-step explanation:
The statement is True. When making a payment using an electronic check, credit card, or debit card, the server authenticates the customer and verifies with the bank that funds are adequate before the purchase is completed. This is done to ensure that the customer has sufficient funds in their account to cover the cost of the purchase.
When making a payment using an electronic check (e-check), the process is similar to that of a traditional paper check, but it is conducted electronically. Here's a simplified overview of how the process works:
Authorization: The payer initiates the payment by providing their checking account information, including the account number and routing number.
Verification: The system verifies the payer's information and checks if the provided account has sufficient funds to cover the payment.
Transaction Processing: Once the account is verified and funds are confirmed, the electronic check is processed, and the amount is electronically debited from the payer's checking account.
Notification: The payer and payee may receive notifications of the transaction, and the payment details are recorded for both parties.
It's important to note that the specific details of the process can vary depending on the payment system or platform used. Additionally, electronic check transactions are subject to the same security measures and verification processes as other electronic payment methods to prevent fraud and ensure the legitimacy of the transaction.