What is electronic funds transfer?

Answer 1

Electronic funds transfer or EFT refers to the computer-based systems used to perform financial transactions electronically. The term is used for a number of different concepts: * Cardholder-initiated transactions, where a cardholder makes use of a payment card * Direct deposit payroll payments for a business to its employees, possibly via a Payroll Services company * Direct debit payments from customer to business, where the transaction is initiated by the business with customer permission * 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 * Wire transfer via an international banking network (generally carries a higher fee) * Electronic Benefit Transfer

Answer 2

Electronic funds transfer is a system through which a customer can transfer money to another customers account without having to physically visit the bank. For ex: if I have to give you Rs. 1000 for some reason, I can either visit you and give it or give you a cheque. Alternately, I can login to my bank account online and add you as a payee and then send the money electronically. That is electronic funds transfer.