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. When made within the same financial institution, they are commonly known as peer-to-peer transfers.
Video Electronic funds transfer
Electronic money account
The term is related to electronic money,or e-money, which is explained as a summary of different electronic payment systems, used for electronic funds transfers and transactions globally.
An electronic money account is used to store user's money for future payment transactions, such as online and in-store payments and cash withdrawals.
In Europe, electronic money accounts are provided by licensed e-money institutions as defined under the 2009/110/EC Directive of the European Parliament and Council.
The European Union has been at the forefront of defining terms related to e-money - since 2000, which is longer than other countries or regions.
Maps Electronic funds transfer
Types of EFT
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.
An EFT transaction requires the following steps:
- Making application
- Data preparation
- Data transmission
- Debiting remittance banks
- Crediting receiving banks
- Crediting beneficiary
- Task at service branch
- Task at beneficiary branch
- 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
- Electronic Funds Transfer Association
Source of the article : Wikipedia