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Electronic funds transfer

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, through computer-based systems and without the direct intervention of bank staff. EFTs are known by a number of names. In the United States, they may be referred to as electronic checks or e-checks.

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.

Usage examples of "electronic funds transfer".

We reviewed a computer printout listing every electronic funds transfer the bank has received and transmitted since the surveillance list was last updated twenty-four hours ago.

With direct electronic funds transfer rapidly replacing cash, every purchase an individual makes is logged into the bank's (and the seller's) computer system.

Galileo/Darwin prepaid the air fare by electronic funds transfer, then went browsing through Alaska guidebooks.