Electronic Funds Transfers (EFT) - Explained
What is the Electronic Funds Transfer Act?
Written by J. Mance Gordon
Updated at April 19th, 2024
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
What is Electronic Funds Transfer (EFT)?
An electronic funds transfer (EFT) is a computerized banking transaction that is used to transfer funds from one account to another account electronically. EFT facilitates smooth and speedy funds transfer, and thus it reduces the cost of transferring funds and enables firms to save time.
How Does the Electronic Funds Transfer Work?
EFT uses computer networks to transfer funds. There are many methods to electronically transfer funds including: wire transfer, direct deposit, debit transactions, ATM withdrawal, and many other online payment methods. All online transactions, whether you want to pay vendors or make an online purchase, are processed through electronic funds transfer. The Automated Clearing House (ACH) network is the clearing house that settles any claims and makes settlement between the sender and receiver of funds though EFT. ACH is a reliable and more secure transaction system that connects all financial institutions, banks, credit rating agencies, and other related institutions of USA.
Related Topics
- Consumer Protection Law (Intro)
- What is consumer protection law?
- Cooling Off Rule
- What major federal laws protect consumers?
- What is the Federal Trade Commission
- Enforcement procedures of the FTC?
- Penalties for violating FTC regulations?
- Commercial Practices Prohibited by FTC?
-
Unfair Trade Practices
- Predatory Pricing
- Bait & Switch
- Lemon Laws
- Consumer Financial Protection Bureau
- What is the Fair Credit Reporting Act?
- Users of Information?
- Credit Reporting Agency Consumers
- Reporting Agencies?
- Consumer Reporting Agency
- Furnishers of Information?
- Enforcement?
- Truth in Lending Act
- Fair Debt Collection Practices Act
- Fair Credit Billing Act
- Electronic Funds Transfer Act
- Electronic Funds Transfers (EFT)
- Equal Credit Opportunity Act
- Regulation B
- Consumer Credit Protection Act
- Consumer Advisory Council
-
Consumer Financial Protection Act
- Consumer Product Safety Act
- Consumer Product Labeling Laws
- Credit Repair Organization Act
- Federal Food, Drug, and Cosmetic Act
- Magnuson-Moss Warranty Act
- Privacy Act of 1974 (Privacy Act)
- Personally Identifiable Information
- Right to Financial Privacy Act of 1978 (RFPA)
- Electronic Communication Privacy Act of 1986 (ECPA)
- Childrens Online Privacy Protection Act of 1986 (COPPA)
- Privacy Policy
- CAN SPAM Act
- What role do states play in Consumer Protection?