An electronic funds transfer (EFT) is a process whereby money is transferred from one place to another electronically. Computers are used to process payments in a variety of ways. The EFT procedure is a quick and efficient way to transfer money from one account to another.
EFT is used millions of times a day the world over. If you are earning a salary, your cash may be placed into your bank account by EFT. You can then withdraw money from an automated teller or use your debit card to pay for goods and services. Using your debit card in a store to pay for goods is another example of EFT.
EFT has simplified the money transferring process. Once money has been paid into an account using this procedure, it should be available immediately. Some banks and processes may hold up the transfer of funds in order to verify and process the transfer.
EFT has made buying and selling on the Internet a much simpler way to conduct business. Many Internet sites allow you to pay for goods by electronic fund transfer. This speeds up the transaction process, as money can be passed between accounts in real time. You can see when money has been deposited into your account within seconds of the other person sending it.
The Internet has also enabled workers to telecommute and be paid by EFT. Many people who work from home now work in different countries from their place of employment. With EFT, paying salaries into bank accounts is quick, safe, and efficient.
If you are using a credit card, debit card, or online account, you are using EFT. Because these transactions deal with the transfer of money, safety procedures must be put into place. Encryption, verification, and passwords are typically necessary for an EFT procedure to take place.
One of the biggest EFT tools available on the Internet is Paypal. Using the Paypal site, people can shop, move money to bank accounts, buy, sell, and request money directly from their bank accounts. The advent of Paypal has been responsible in creating thousands of small and large online businesses.
Another advantage of EFT is that currency is automatically calculated when funds are being transferred around the world. The currency and exchange rate from one country to another can be automatically worked out, and the money can be deposited into an account. EFT is both time saving and, in most cases, reliable.