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

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.

Maps Electronic funds transfer

Examples

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.

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See also

External Links

• Electronic Funds Transfer Association

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References

Source of the article : Wikipedia