EFT (Electronic Funds Transfer)
Umbrella term for transferring money electronically between accounts.
Detailed Description
EFT (Electronic Funds Transfer)
What are the main types of EFT?
The main types of EFT include Direct Deposit, Electronic Bill Payment, Debit Card Transactions, Wire Transfers, and Automated Clearing House (ACH) transactions.
What are the benefits of using EFT?
Benefits of EFT include speed, convenience, cost-effectiveness, reduced risk of theft, and a positive environmental impact.
What risks are associated with EFT?
Risks include cybersecurity threats like hacking and phishing, as well as unauthorized transactions if account details are compromised.
How does EFT differ from traditional payment methods?
EFT is generally faster and more secure than traditional methods like checks and cash, which can involve delays and risks of fraud.
What regulations govern EFT transactions?
In the U.S., the Electronic Fund Transfer Act (EFTA) and regulations from the National Automated Clearing House Association (NACHA) govern EFT transactions.