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

Video Electronic funds transfer

Types

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.

Maps Electronic funds transfer

Steps

An EFT transaction requires the following steps:

1. Making application
2. Data preparation
3. Data transmission
4. Debiting remittance banks
5. Crediting receiving banks
6. Crediting beneficiary
7. Task at service branch
8. Task at beneficiary branch

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See also

• Digital currency
• E-commerce payment system
• Electronic money
• Electronic funds transfer at point of sale (EFTPOS)
• Interbank network
• Payment system
• Real Time Gross Settlement
• Society for Worldwide Interbank Financial Telecommunication (SWIFT)
• Virtual currency

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External Links

• Electronic Funds Transfer Association

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References

Source of the article : Wikipedia