Electronic funds transfer (EFT) is the means by which financial institutions exchange billions of dollars every day without the physical movement of any paper money. Money moves electronically from one bank account to another, usually within 24 hours of a scheduled payment.
The system covers all electronic credit and debit money transfers, including direct deposits - which occur when you authorize your employer or other payer to automatically deposit payroll into your bank account - debit card and ATM transactions, online bill payment, wire transfers, and debit transfers - or automatic deductions from your bank accounts to make regular payments.
According to the US Department of the Treasury, it costs the federal government only 9 cents to issue an EFT payment as opposed to 86 cents to make a traditional check payment.
Yahoo Finance - Cite This Source - This Definition
- Account balance, Asset Management Account, Check hold, Checking account, Commercial bank, Correspondent, Direct deposit, Electronic bill payment, Federal Reserve Fedwire, Float, money-market account, regulation d, Sweep account, Virtual bank
All > Business > Finance > Personal Finance