EFT (Electronic Funds Transfer)

Electronic Funds Transfer (EFT) refers to the paperless transfer of money between bank accounts using electronic means rather than traditional paper-based methods or manual processing by bank personnel. This process encompasses a wide variety of financial transactions conducted via electronic devices such as terminals, computers, and telephone instruments, as well as older methods like magnetic tape.

Key Types of EFT Transactions Include:

Advantages of EFT:

EFTs are crucial to the functionality of modern banking and finance, facilitating a seamless flow of capital in both consumer and commercial spheres. As technology advances, EFT systems continue to evolve, ensuring that financial transactions remain timely and secure in an increasingly digital world. The use of EFT was institutionalized in the United States with the Electronic Funds Transfer Act of 1978, which established basic protections for individuals using these services.