ACRO.IT Acronym Directory

Electronic Funds Transfer (EFT) is a transfer of funds between accounts by electronic means rather than conventional paper-based payment methods, such as Check writing.

 

An electronic funds transfer is any financial transaction originating from a telephone, electronic terminal, computer, or magnetic tape.

There are two categories of EFT systems:

1. Large dollar Wire Transfer systems used in interbank payment system including foreign trade.
2. Consumer electronic payment systems, including ATM networks, retail merchant POS debit card systems, and telephone bill payment systems.