Electronic Funds Transfer (EFT)

Electronic Funds Transfer (EFT) is defined as the automatic deposit of payments to a checking or savings account at a financial institution.

An EFT or Electronic Funds Transfer is the transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. In other words, it’s the shifting of money from one financial institution account to another without the physical movement of cash.

However, wire transfers, checks, drafts, and paper instruments do not fall into the EFT category.