What is an EFT
EFT stands for Electronic Funds Transfer. EFT is the method of transferring funds from one bank account to another electronically – this means that there is no requirement for the individual or company to write, issue or deposit a cheque.
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An EFT explained
EFT can be achieved through the platform of internet banking which means that individuals or businesses are able to transfer a specific amount of money to another account of their choice without the need for any written documentation.
EFT can be facilitated through a single financial institution or through a range of multiple networks. Although there is risk of transacting money electronically, there are a number of highly effective anti-fraud measures put in place to ensure transactions are made legally, securely and efficiently.
There is an Electronic Funds Transfer Act (EFTA) was established in 1978 by U.S Congress in an effort to stipulate the liabilities and rights of all parties in an EFT procedure.
The most popular used EFT program is a Direct Deposit used by employers to pay their employees directly into their bank account with ease and in a timely manner. Additionally, online bill payment is another form of EF which is increasingly in usage over recent years as many people prefer the “paperless” way of bill payment.
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