What is an Electronic Funds Transfer?

by David Dierking

0 min read

Electronic fund transfers are paperless payments made between businesses and financial institutions utilizing the payment networks of Canada and the United States. Financial institutions in North America participate in the inter-bank clearing of one-time or recurring electronic payments used in customer billing, collections, direct deposit payroll, and other web-based transactions. Transactions are secured through encryption and occur almost instantly. The advantages for businesses using EFT are numerous, including:

  • Increased cash management efficiency
  • Streamlined payment and collection processes
  • Improved customer and vendor relationships
  • Reduced exposure to fraudulent transactions
  • Reduced overhead expenses
  • No delayed or lost payments
  • More accurate reporting of transactions

References & Resources

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