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 payments are a faster, safer, and more reliable option than traditional paper-based payment methods such as cash and checks. The term “EFT” covers a broad range of electronic payments, including wire transfers, ACH transfers, direct deposit, credit card transactions, ATM transactions, electronic checks, and phone payments.

EFT payments can be carried out between any two accounts, whether they’re based at the same financial institution or not. They are more secure and efficient than traditional paper-based payment methods such as paper checks. EFT payments offer an easy payment solution that allows businesses to take payments quickly and securely.

Types of EFT payments include, but are not limited to:

• Automated teller machine (ATM) transfers
• Wire transfer via an international banking network such as SWIFT
• Direct deposit – A type of electronic transfer that allows you to pay employees electronically
• ACH payment

EFT payments are processed by the bank through the Automated Clearing House (ACH) network, the transfer system that connects all the financial institutions, banks, and credit unions in the US. Direct deposit (EFT) is safe, secure, efficient, and less expensive than paper check payments and collections.

In summary, EFT payments are a way to move money across an online network, between banks, people, and companies. They are a faster, safer, and more reliable option than traditional paper-based payment methods such as cash and checks. EFT payments offer an easy payment solution that allows businesses to take payments quickly and securely.