What is eft
An electronic funds transfer (EFT), or direct deposit, is a digital money movement from one bank account to another. These transfers take place independently from bank employees. As a digital transaction, there is no need for paper documents. EFT has become a predominant method of money transfer since it is a simple, accessible, and direct payment or transfer of funds. As businesses increase their usage of EFT, paper checks become obsolete due to expense, slower expedition, and overall effort.
An EFT transfer is usually very straightforward. There are two parties: the sender of funds and the receiver of funds. Once the sender initiates the transfer, the request channels through a series of digital networks from the Internet or a payment terminal to the sender’s bank and then to the receiver’s bank. Senders can be anyone from an employer to a business to an individual paying a vendor for a service such as electricity. Likewise, recipients can be entities like employees, goods suppliers, retailers, and utility companies. Most payments are cleared and completed within a couple of days.
EFT payment methods vary. Every method of EFT offers ease and fast delivery, which is why it’s become so popular. While EFT is preferred worldwide, it’s important to know how one can participate in EFT payments. Here are the most common types of EFT:
