electric funds transfer (EFT) system

An Electronic Funds Transfer (EFT) system is an electronic method of making payments, sending money, and conducting other financial transactions without the need of a physical instrument such as paper money or checks. EFT systems are commonly used for consumer payments, business payments, payroll, federal transfer payments such as Social Security, and other financial transfers between customers and financial institutions. Some EFT systems use direct debit technologies, where the payer authorizes the payee to collect funds from the payer's account on a recurring basis. Other systems use digital payments and services such as Apple Pay or PayPal. With an EFT system, funds are transferred electronically and directly between banks, eliminating the need to physically deliver or deposit funds. This process makes it easier and much faster to receive payments, as funds can be transferred in real time or with a short delay. Additionally, EFT systems can help streamline the payment process, reduce paperwork, and can eliminate certain fraud risks.