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Sunday, June 17, 2018

Electronic funds transfer

Electronic Funds Transfer - Sturycz Law Group
src: www.sturyczlaw.com

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 cheques" or "e-cheques". In the United Kingdom, the term "bank payment" is commonly used term. "Bank transfer" is also used.

When made within the same financial institution, EFTs are technically known as peer-to-peer transfers.


Video 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.

Maps Electronic funds transfer



Steps

An EFT transaction requires the following steps:

  1. Making application
  2. Data preparation
  3. Data transmission
  4. Debiting remittance banks
  5. Crediting receiving banks
  6. Crediting beneficiary
  7. Task at service branch
  8. Task at beneficiary branch

Diagram Electronic Funds Transfer Stock Illustration 369747464 ...
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See also

  • 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

Home - Electronic Funds Transfer Association
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References


Electronic Fund Transfer? Here Are Your Options. | Nigerian Banker ...
src: i2.wp.com


External links

  • Electronic Funds Transfer Association

Source of the article : Wikipedia