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.
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According to the United States Electronic Fund Transfer Act of 1978 it is "a funds transfer 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".
EFT transactions are known by a number of names across countries and different payment systems. For example, in the United States, they may be referred to as "electronic checks" or "e-checks". In the United Kingdom, the term "bank transfer" and "bank payment" are used, while in several other European countries "giro transfer" is the common term.
- automated teller machine (ATM) transfers;
- direct deposit payment or withdrawals of funds initiated by the payer;
- direct debit payments for which a business debits the consumer's bank accounts for payment for goods or services;
- transfers initiated by telephone;
- transfers resulting from credit or debit card transactions, whether or not initiated through a payment terminal.
- 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;
- instant payment.
- "Electronic Fund Transfer Act" (PDF). www.federalreserve.gov. Federal Reserve Board. 1978. Retrieved September 8, 2018.