What is an EFT payment?

An electronic funds transfer (EFT), or direct deposit, is a digital movement of money from one bank account to another. These transfers take place independently from bank employees.

EFT- Electronic Funds Transfer

Refers to payment for goods,where the payment is made from one account to another i.e.

• Credit & Debit cards
• Payments made using an intermediary such as Paypal
• Payments through an electronic purse(pre-paid cards)
• Payments made between one bank account and another using online banking

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 method of payment or transfer of funds.

As businesses increase their usage of EFT, paper checks become obsolete due to expense, slower expedition, and overall effort.