What is Electronic Fund Transfer?

4 months ago
E-Commerce

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.

Rusma Khadka
Sep 21, 2022
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