Electronic funds transfer (EFT) is a method of transferring funds from one bank account to another electronically. It is a secure and efficient way of conducting financial transactions without the need for physical checks or cash. EFTs can be initiated by individuals, businesses, or financial institutions, and can be used for a variety of purposes such as paying bills, making purchases, or transferring funds between accounts. EFTs are processed through a network of financial institutions and clearinghouses, and typically involve the use of electronic payment systems such as Automated Clearing House (ACH) or wire transfers. EFTs offer several advantages over traditional payment methods, including faster processing times, lower transaction costs, and increased security. They also provide greater convenience and flexibility for both senders and recipients, as transactions can be initiated and completed from anywhere with an internet connection. Overall, EFTs are an essential component of modern financial systems, enabling businesses and individuals to conduct transactions quickly, securely, and efficiently.
