Electronic Funds Transfer (EFT)

What is Electronic Funds Transfer (EFT)?

Electronic Funds Transfer (EFT) is a broad term that covers any transfer of funds initiated through an electronic terminal. This includes ACH transfers, wire transfers, direct deposits, and ATM transactions.

EFTs eliminate the need for paper-based transactions, making the movement of money faster and more secure. They are the foundation of modern banking and payroll systems worldwide.

Why It Matters

• Enables the rapid and secure movement of money between accounts

• Reduces the costs and delays associated with paper checks

• Supports a wide range of payment types from payroll to bill pay

• Provides a clear digital audit trail for financial transactions