What is Electronic Funds Transfer (EFT)? - Ikajo Glossary


Electronic Funds Transfer (EFT)

Electronic Funds Transfer systems are specific structures that receive or transfer money between the receiving and sending part using software and electronics. All electronic funds transfer systems have their own service network, which includes support service, billing center, and other units.

The mechanism of transferring money from card to card via the Internet is quite simple and consists of several steps.

  •        The first stage consists of choosing a service.

First of all the client needs to decide if the money transfer function suits him or not. Transferring from card to card involves withdrawing money from one card and crediting it to another. In case if the client makes a transfer to an individual’s card, he only needs the bank card number. If he needs to make a payment to the account of a legal entity, then he will need not a card number, but its details.

  •        The next stage is to determine the appropriate service.

Every client chooses the money transfer service through the Internet basing on his feeling of convenience and security. The main reasons for choosing one or another payment system include several core points:

–          To what extent the service is well-known (if it is written a lot about or used by other clients);

–          Are you satisfied with the number of fees for this service?

–          To what extent it is confident (for how long does it exist on the market and how many people use it);

–          How secure does this system? You should understand what the level of protection of personal data of clients is and if it meets international standards;

–          To what extent the service is convenient to use and has a clear interface;

–          Are there any recommendations? For instance, if your friends used this service and were satisfied with the quality of service;

–          How fast will the transfer be made? (for instance, the money are transferred to the recipient’s account within one or two minutes).

  •        The next step is tracking the money from the sender to the recipient.

Just a few seconds after the transfer, the money is debited from the sender’s card and then transferred to the recipient’s card. In such a way, most transfers take no more than two minutes. If the transfer is made between cards of different banks, the transfer process can take two minutes longer. If you have not received notifications about the debit of funds and the success of the money transfer, you must contact the issuing bank of your card and check whether the mobile banking settings work. In most cases, the transfer process is fast and successful that means that the client immediately receives a notification about the transaction.

  •        The last step is to confirm the transfer of money

In order to record all transactions with the card, there are various mobile banking service that allows the clients to perform transactions more securely

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