Electronic Fund Transfer (EFT) is a money transfer mechanism from one bank or institution to another, through electronic means. EFT offers the flexibility of transferring money using internet services from any location in the world and once the funds are transferred, the amount is deducted from one account and credited to the other.
In USA, the EFT transactions are routed through the Automated Clearing House (ACH) network, which is the secure transfer system of the Federal Reserve that connects all U.S. banks, credit unions and other financial institution including debit or credit card purchases at stores or online. Also EFT is used to deposit money to different account holders thus saving cost and time both.
How EFT can be used for different transactions?
EFT offers different benefits. Some of the most important benefits are