Electronic Funds Transfer (EFT) Payment

EFT is a short name for Electronic Funds Transfer. Essentially, the term 'EFT' refers to any electronic cash transfer from one account to another. Because EFT is a broad phrase, it encompasses many payment methods, including phone transfers, computer-based (i.e., internet) transfers, ATM transfers, Direct Debit, bank transfers, point-of-sale transfers, electronic checks, etc. The payment duration will vary depending on the type of EFT, but in most circumstances, payment will be available the following business day or up to three business days.

EFT payments are processed through a specific money network, particularly the Automated Clearinghouse (ACH) system. This electronic payment system links all of the banking systems in the United States, from giant banks to local credit unions.

EFT transactions require two parties: somebody must transfer money, and another person must receive it. For a successful transfer, the sender must additionally supply the receiver's bank name, routing, account number, and the type of account they have.

The sender of the payment can be an organization or an individual paying a contractor for service. The recipient can be a firm employee, a supplier who is a third party, or even a utility provider.

Once launched, a money transfer goes through several digital networks from the Internet or payment terminal to the sender's and recipient's banks. The ACH network executes EFTs in batches — the waiting network accumulates a set of pending transactions and subsequently processes them. The majority of these payments will be processed within a few days.

EFT payment has gradually replaced cash payment in all aspects of e-commerce. As a consumer, you may find this method of payment helpful because:

For Buyers

- Saves time, simplifies the process, and allows you to pay online instead of going directly to the store. 

- Ensures safety while purchasing large things because there is no need to carry huge amounts of cash, reducing the chance of being robbed or dropped.

For Sellers

- Instead of conducting traditional business, companies today frequently conduct business online through websites, social networks, e-commerce platforms, and so on. EFT payment is becoming more vital than ever for company business activities. Even when selling directly, with many cashless individual users, businesses must also provide EFT payment options to suit consumers' expectations.

- Sellers can expand their company market indefinitely using EFT payment. Customers in foreign countries or any country who wish to acquire items can do so effortlessly and without being hampered by time or physical distance. This advantage enables organizations to attract and identify many potential clients in the global market.

- Furthermore, business owners must calculate revenue. It is now easier than ever to collect invoices and reports, and calculate data when making EFT payments in e-commerce, reducing payment confusion.