Electronic funds transfer

Electronic funds transfer (EFT) is the electronic exchange or transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems.

The term covers a number of different concepts:

• Cardholder-initiated transactions, where a cardholder makes use of a payment card
• Direct deposit payroll payments for a business to its employees, possibly via a payroll service bureau
• Direct debit payments, sometimes called electronic checks, for which a business debits the consumer's bank accounts for payment for goods or services
• 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
• Wire transfer via an international banking network (carries a higher fee in North America)
• Electronic Benefit Transfer

In 1978 the U.S. Congress passed the Electronic Funds Transfer Act to establish the rights and liabilities of consumers as well as the responsibilities of all participants in EFT activities in the United States.

See also

• Debit card
• Wire transfer
• Automated Clearing House
• Hardware security module
• E-commerce payment system
• Electronic money
• Electronic funds transfer at point of sale