Abstract: A secure and convenient electronic check transaction processing system that allows a customer and a merchant to agree on terms of a payment. A secure connection between the merchant and an independent entity such as a check acceptance service, preferably by a secure Internet connection, allows the customer and the merchant to set up a pre-approved schedule of payments by the customer to the merchant. The processing system provides a user-friendly interface that allows the user to easily set up the electronic payment schedule. The processing system also provides a back end process that carries out the scheduled payments and handles any returned payments.