Electronic funds transfer

An electronic funds transfer EFT is a transaction that takes place over a computerized network, either among accounts at the same bank or to different accounts at separate financial institutions. How it works Example: EFTs include direct-debit transactions, wire transfers, direct deposits, ATM withdrawals and online bill pay services.

Electronic funds transfer

For More Information and Complaints Electronic Fund Transfers Electronic banking, also known as electronic fund transfer EFTuses computer and electronic technology in place of checks and other paper transactions.

EFTs are initiated through devices like cards or codes that let you, or those you authorize, access your account. Some use other types of debit cards that require your signature or a scan. For example, some use radio frequency identification RFID or other forms of "contactless" technology that scan your information without direct contact with you.

Here are some common EFT services: ATMs are electronic terminals that let you bank almost virtually any time. To withdraw cash, make deposits, or transfer funds between accounts, you generally insert an ATM card and enter your PIN.

Some financial institutions and ATM owners charge a fee, particularly if you don't have accounts with them or if your transactions take Electronic funds transfer at remote locations. Generally, ATMs must tell you they charge a fee and the amount on or at the terminal screen before you complete the transaction.

Check with your institution and at ATMs you use for more information about these fees. Direct Deposit lets you authorize specific deposits — like paychecks, Social Security checks, and other benefits — to your account on a regular basis. You also may pre-authorize direct withdrawals so that recurring bills — like insurance premiums, mortgages, utility bills, and gym memberships — are paid automatically.

Be cautious before you pre-authorize recurring withdrawals to pay companies you aren't familiar with; funds from your bank account could be withdrawn improperly. Monitor your bank account to make sure direct recurring payments take place and are for the right amount.

Pay-by-Phone Systems let you call your financial institution with instructions to pay certain bills or to transfer funds between accounts. You must have an agreement with your institution to make these transfers. Personal Computer Banking lets you handle many banking transactions using your personal computer.

For example, you may use your computer to request transfers between accounts and pay bills electronically. Transactions can take place in-person, online, or by phone.

The process is similar to using a credit card, with some important exceptions: This means you need to keep accurate records of the dates and amounts of your debit card purchases, payments, and ATM withdrawals. Be sure you know the store or business before you provide your debit card information to avoid the possible loss of funds through fraud.

Your liability for unauthorized use, and your rights for dealing with errors, may be different for a debit card than a credit card. Electronic Check Conversion converts a paper check into an electronic payment in a store or when a company gets your check in the mail.

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When you give your check to a cashier in a store, the check is run through an electronic system that captures your banking information and the amount of the check. You sign a receipt and you get a copy for your records.

When your check is given back to you, it should be voided or marked by the merchant so that it can't be used again. The merchant electronically sends information from the check but not the check itself to your bank or other financial institution, and the funds are transferred into the merchant's account.

When you mail a check for payment to a merchant or other company, they may electronically send information from your check but not the check itself through the system; the funds are transferred from your account into their account. For a mailed check, you still should get notice from a company that expects to send your check information through the system electronically.

For example, the company might include the notice on your monthly statement. Be careful with online and telephone transactions that may involve the use of your bank account information, rather than a check. A legitimate merchant that lets you use your bank account information to make a purchase or pay on an account should post information about the process on its website or explain the process on the phone.

The merchant also should ask for your permission to electronically debit your bank account for the item you're buying or paying on.With electronic funds transfer (EFT), government agencies can pay and collect money electronically, without having to use paper checks.

EFT is safe, secure, efficient, and less expensive than paper check payments and collections. Electronic Funds Transfer (EFT) is an electronic method for making payments to the Employment Development Department (EDD). There are two methods for making EFT payments: Automated Clearing House (ACH) Debit: Initiate a payment by authorizing the State of .

Electronic Funds Transfer (EFT) is a system of transferring money from one bank account directly to another without any paper money changing hands.

Electronic funds transfer

Electronic funds transfer (EFT) are 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.

An electronic fund transfer moves money from one account to another. The accounts can be at the same financial institution or two different financial institutions.

The transaction is done electronically over a computerized network. EFT transactions are also referred to as electronic banking. Electronic funds transfer (EFT) is a transfer of funds is initiated through an electronic terminal, telephone, computer (including on-line banking) or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer’s account.

Electronic Funds Transfer (EFT) - Full Explanation & Example | InvestingAnswers