ELECTRONIC FUND TRANSFER
Electronic Funds Transfer (EFT) is the electronic transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, via computer-based systems, without the direct intervention of bank staff. EFT transactions are known by a number of names. In the United States, they may be referred to as electronic checks or e-checks.
Types of Electronic Fund Transfer
The term covers a number of different payment systems, for example:
Cardholder-initiated transactions, using a payment card such as a credit or debit card
Direct deposit payment initiated by the payer
Direct debit payments for which a business debits the consumer’s bank accounts for payment for goods or services
Wire transfer via an international banking network such as SWIFT
Electronic bill payment in online banking, which may be delivered by EFT or paper check
Transactions involving stored value of electronic money, possibly in a private currency.