Investing and Financial Markets
The Difference Between

What is the difference between EFT and ACH money transfers?

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2010-03-18 15:46:46

Debit and ATM transactions are processed through an "EFT"

(electronic funds transfer) network that is set up to verify and

debit funds in real time using an encrypted personal identification

number for authorization purposes; these networks are connected to

ATM Machines and Point of Sale terminals running debit-card and

credit-card transactions. Some privately owned EFT Networks are

PLUS, Star, Cirrus, and Interlink. Electronic checks are processed

through the shared ACH Network that banks use for moving money

between institutions; this system does not check funds availability

in real time and the authorization is based on a signature or other

authenticating means, just like paper checks. Electronic checks can

be returned for insufficient funds.

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