The systems are a major form of electronic payment systems in banking and retailing industries.
It consists of a group of technologies that allow financial transactions to be carried out electronically.
Electronic funds transfer systems use a variety of information technologies to capture and process money and credit transfers between banks and businesses and their customers.
The most common methods of electronic funds transfer are automated teller machines, paycheck direct deposits/withdrawals, pay-by-phone systems, and point of sale terminals.
For example, banking networks support teller terminals at all banks offices and automated teller machines (ATMs) at location throughout the world. This machine operated automatically providing receipt and disbursement of cash loan payments, balance information and other functions.
Banks may also support pay-by-phone and Web-based bill payment services, which enable bank customers to use their telephones or networked PCs to electronically pay bills.
In addition, most point of sale terminals in retail stores are networked to bank EFT systems. This makes it possible for customer to use a credit card or debit card to instantly pay for gas, groceries, or other purchase at participating outlets.
To control cash payments through electronic funds transfer, the person responsible for requesting transfer should be given a password. That bank should not accept electronic funds transfer requests from any person unable to provide an established password.
Electronic Funds Transfer