electronic funds transfer

Banking Terms -> electronic funds transfer

• The term electronic funds transfer refers to electronic transfer or exchange of funds between accounts, across different institutions or within a single one. Electronic funds transfers are made via computer based systems. On the other hand, this term may refer to a number of concepts, including direct debit payments to clients’ bank accounts by businesses. Electronic funds transfers are also made in the form of cardholder-initiated transactions with which bank clients use payment cards. Electronic benefit transfers, wire transfers, and direct deposit payroll payments are also types of electronic funds transfers.
  
  Wire transfers may be done through international banking networks, and funds are transferred from one entity or person to another. Electronic Benefit Transfer refers to a US electronic system through which state governments are able to provide material and financial benefits through a debit card. Benefits provided through this system are of two types – cash and food benefits. Cash benefits can be subdivided into Temporary Aid for Needy Families, State General Assistance, and refugee benefits. Food benefits, on the other hand, are covered under the Supplemental Nutrition Assistance Program.
  
  With electronic funds transfers, money are transferred directly, meaning that money is not changing hands. Direct deposit is among the most commonly used transfer types, through which payroll is directly deposited into the bank accounts of employees. In general, electronic funds transfer may refer to any transfer, which is made using an electronic terminal. This can be an ATM, a credit card, a point of sale, Fedwire, etc. Electronic transfers can be used for debit transfers, for example, mortgage payments, as well as for payroll payments and other credit transfers.
  
  The processing of transactions takes place via the Automatic Clearing House network. This is a system for secure transfers of money, connecting all financial institutions in the United States. Money is transferred to the financial institution of billing companies electronically.
  
  Electronic funds transfers have become increasingly popular, leaving paper checks, envelopes, and stamps in the past. EFTs have many benefits, among which simplified bookkeeping, better efficiency, reduced administrative expenses, and greater security. At the same time, the number of business entities that receive and send bills online is still comparatively small.
  
  With electronic funds transfers, computers are used for payment processing, and the process is efficient and quick. Employees may have their salary transferred into a bank account through an EFT. The money can be withdrawn from an ATM, or a debit card can be used to pay for various services and products.
  
  In general, electronic funds transfers have simplified the process of transferring money. Once the money has been received in a bank account, it is available immediately. However, some banks hold up fund transfers as to verify the transfer.
  
  In addition, electronic funds transfers have made selling and buying online much easier. Many websites allow clients to use EFTs to pay for goods and services. This makes the transaction process quicker because money is transferred from one account to another in real time. Retailers can check if the funds have been deposited into their account shortly after the other party has sent it. Sometimes this happens within seconds. Internet has made it possible for people to telecommute and be paid through an electronic funds transfer. Thus, people from different countries can work from home and have their salaries paid safely and efficiently. Finally, if you have a debit, credit, or online account, then you are using an electronic funds transfer. The money you receive is deposited in a secure way using different security methods. Among these are passwords, verification, and encryption, so that EFT can take place, with safety guaranteed.

Payday Loan Canada