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EFT - Electronic Funds Transfer |
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Term: EFT - Electronic Funds Transfer
Electronic funds transfer is the process by which funds are moved between two accounts electronically - without the use of a check.
The term is relevant to websites which perform e-commerce ("electronic commerce").
Firstly, you may purchase something online and supply check information (routing number and account number) in order to have your payment withdrawn from your checking account electronically.
Secondly, you may have sold an item using Amazon or Ebay. After the sale has been made, the selling organization would use EFT to deposit the proceeds from the sale into your bank account, less any handling or commission.
Thirdly, you may own an e-commerce website and a customer had made a payment for the products or services used by entering credit card or bank account information in order to pay for their purchases. After the transaction is processed the organization who processed the transaction would use EFT to deposit the payment to your bank account electronically. Depending upon the organization used to collect payment the charge to you for this service may be collected before funds are transferred electronically, periodically - such as monthly - when a statement of charges is generated or a combination of both.
Additional related terms:
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© Thursday, September 09, 2010, Trio Company of Cheektowaga, Ltd. All rights reserved.
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