Neha Patil (Editor)

Electronic funds transfer

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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's are known by a number of names. In the United States, they may be referred to as electronic checks or e-checks.

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.

    • References

    Electronic funds transfer Wikipedia
    (Text) CC BY-SA