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    What Is Electronic Funds Transfer (EFT) ?

    Uploaded by

    Philemon Wishikoti Sawono
    Electronic Funds Transfer (EFT) allows money to be transferred electronically between accounts, either at the same or different financial institutions. EFT transactions are paperless and include direct deposit, wire transfers, ATM withdrawals, debit card purchases, electronic checks, pay-by-phone transfers, and online banking. EFT provides advantages like being paperless, convenient, available at any time, safe and secure, and saving time and effort compared to paper checks or cash. However, EFT also has disadvantages like requiring computer or mobile skills, an internet connection, transaction limits, and risks of hacking and loss of privacy.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    What Is Electronic Funds Transfer (EFT) ?

    Uploaded by

    Philemon Wishikoti Sawono
    45 views2 pages
    Electronic Funds Transfer (EFT) allows money to be transferred electronically between accounts, either at the same or different financial institutions. EFT transactions are paperless and include direct deposit, wire transfers, ATM withdrawals, debit card purchases, electronic checks, pay-by-phone transfers, and online banking. EFT provides advantages like being paperless, convenient, available at any time, safe and secure, and saving time and effort compared to paper checks or cash. However, EFT also has disadvantages like requiring computer or mobile skills, an internet connection, transaction limits, and risks of hacking and loss of privacy.

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    Electronic_Funds_Transfer

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    Electronic Funds Transfer (EFT) allows money to be transferred electronically between accounts, either at the same or different financial institutions. EFT transactions are paperless and include direct deposit, wire transfers, ATM withdrawals, debit card purchases, electronic checks, pay-by-phone transfers, and online banking. EFT provides advantages like being paperless, convenient, available at any time, safe and secure, and saving time and effort compared to paper checks or cash. However, EFT also has disadvantages like requiring computer or mobile skills, an internet connection, transaction limits, and risks of hacking and loss of privacy.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    45 views2 pages

    What Is Electronic Funds Transfer (EFT) ?

    Uploaded by

    Philemon Wishikoti Sawono
    Electronic Funds Transfer (EFT) allows money to be transferred electronically between accounts, either at the same or different financial institutions. EFT transactions are paperless and include direct deposit, wire transfers, ATM withdrawals, debit card purchases, electronic checks, pay-by-phone transfers, and online banking. EFT provides advantages like being paperless, convenient, available at any time, safe and secure, and saving time and effort compared to paper checks or cash. However, EFT also has disadvantages like requiring computer or mobile skills, an internet connection, transaction limits, and risks of hacking and loss of privacy.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    IT (9626)

    Theory Notes
     
     
    Electronic Funds Transfer (EFT) 
     
    What is Electronic Funds Transfer (EFT)? 
    An electronic fund transfer moves money from one account to another. The accounts can be at the 
    same  financial  institution  or  two  different  financial  institutions.  The  transaction  is  done 
    electronically over a computerized network. 
    EFT transactions are also referred to as electronic banking. Everything is done paper free, so there 
    isn’t a need for cash or paper checks. 
    Types of EFT Payments: 
    There are many ways to transfer money electronically. Below are descriptions of common EFT 
    payments you might use for your business. 
     Direct  deposit lets  you  electronically  pay  employees. After you  run  payroll, you  will  tell 
    your direct  deposit  service provider  how  much  to  deposit  in  each  employee’s  bank 
    account. Then, the direct deposit provider will put that money in employee accounts on 
    payday.  
     Wire transfers are a fast way to send money. They are typically used for large, infrequent 
    payments. You might use wire transfers to pay vendors or to make a large down payment 
    on a building or equipment. 
     ATMs let you bank without going inside a bank and talking to a teller. You can withdraw 
    cash, make deposits, or transfer funds between your accounts. 
     Debit cards allow you to make EFT transactions. You can use the debit card to move money 
    from  your business  bank  account.  Use  your  debit  card  to  make  purchases  or  pay  bills 
    online, in person, or over the phone. 
     Electronic checks are similar to paper checks, but used electronically. You will enter your 
    bank account number and routing number to make a payment. 
     Pay‐by‐phone  systems let  you  pay  bills  or  transfer  money  between  accounts  over  the 
    phone. 
     Personal  computer  banking lets  you  make  banking  transactions  with  your  computer  or 
    mobile  device.  You  can  use  your  computer  or  mobile  device  to  move  money  between 
    accounts. 

    Advantages of EFT: 
    1. Paperless:  EFT  saves  a  lot  of  money  for  some  who  would  have  otherwise  had  to  send 
    money through cheques. Another benefit goes to the environment as there is no use of 
    papers. 

      info.sirfaisal@gmail.com                 +92 300 8460713 
    IT (9626)
    Theory Notes
     
     
    2. Highly convenient: That time is gone when you had to travel so much, stand in queues to 
    pay bills and face the weather conditions. Sitting at your homes, you can complete your 
    tasks in just a few clicks. 
    3. Time limit: EFT method can be used at any time of the day. So, no time bondage is there. 
    4. Safe and secure: It lets you do the transactions in the safest way as you do not have to 
    carry huge sums of cash or paper from one place to another. You can be free from the fear 
    of destruction or robbery. 
    5. Saves time and effort: It is quick. It does not require much effort from you. You save a lot 
    of time. 

    Disadvantages of EFT: 
    1. Not  for  all:  Only  those  can  use  the  EFT  who  know  how  to  work  on  mobiles 
    or computers well enough, otherwise mistakes too can happen. 
    2. A need for an online network: Without an internet connection, EFT is of no use. 
    3. Limits on transactions: There are certain limits out of which no transactions can be made. 
    A limited amount of money can be transferred. 
    4. Hacking and loss of privacy: Hackers can lead to the loss of money as well as the privacy 
    of the details. 
     
     
     

      info.sirfaisal@gmail.com                 +92 300 8460713 

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