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Electronic Funds Transfer (EFT) is the electronic transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, via computer-based systems, without the direct intervention of bank staff. EFT transactions are known by a number of names. In the United States, they may be referred to as electronic checks or e-checks. When made within the same financial institution, they are commonly known as peer-to-peer transfers.

Contents

Electronic money accountEdit

The term is related to electronic money,or e-money, which is explained as a summary of different electronic payment systems, used for electronic funds transfers and transactions globally. [1]

An electronic money account is used to store user’s money for future payment transactions, such as online and in-store payments and cash withdrawals. [2]

In Europe, electronic money accounts are provided by licensed e-money institutions as defined under the 2009/110/EC Directive of the European Parliament and Council. [3]

The European Union has been at the forefront of defining terms related to e-money - since 2000, which is longer than other countries or regions. [4]

Types of EFTEdit

The term covers a number of different payment systems, for example:

StepsEdit

An EFT transaction requires the following steps:

  1. Making application
  2. Data preparation
  3. Data transmission
  4. Debiting remittance banks
  5. Crediting receiving banks
  6. Crediting beneficiary
  7. Task at service branch
  8. Task at beneficiary branch

See alsoEdit

ReferencesEdit

External linksEdit