PAYMENT GLOSSARY

Electronic Funds Transfer (EFT)

Electronic Funds Transfer (EFT): A Definition and Overview

Electronic Funds Transfer (EFT) is a digital payment method that moves funds electronically between bank accounts without the need for paper transactions. Common EFT types include direct deposits, ACH transfers, wire transfers, and electronic checks, making it a versatile option for both personal and business transactions. EFTs are commonly used for payroll deposits, bill payments, and online purchases, offering a secure, efficient, and paperless way to handle payments. EFT transactions are regulated to ensure security and compliance, making them a popular choice for fast, automated payments.

Industry Data and Insights: EFT in Modern Payments

EFTs are increasingly replacing paper checks and cash, with global EFT transactions expected to grow by 10% annually due to the rise of digital banking and e-commerce. Example: A mid-sized utility company switched to EFT for bill payments, reducing processing costs by 30% and providing customers with a convenient, automated payment option. Insight: Research shows that businesses using EFTs for payroll and vendor payments experience up to 60% faster processing times compared to paper-based payments, reducing operational costs and improving cash flow. Additionally, EFTs offer enhanced security and a lower risk of fraud, making them a preferred choice for businesses of all sizes.

Why Choose Swipesum for EFT Solutions?

Swipesum specializes in setting up secure, cost-effective EFT solutions that streamline your payment processes. Our team assists with EFT integration for various transaction types, ensuring compatibility with your bank or payment provider and helping you meet compliance standards. With Swipesum, you’ll benefit from faster, automated transactions, reduced processing costs, and the convenience of paperless payments, providing a smoother experience for both your business and your customers.

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