Written By: Ehsan Jahandarpour

Electronic funds transfer (EFT) is the electronic exchange, 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, using a payment card such as a credit or debit card Direct deposit payment initiated by the payer Direct debit payments, sometimes called electronic checks, for which a business debits the consumer’s bank accounts for payment for goods or services Wire transfer via an international banking network such as SWIFT 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