2016-12-30 00:00:00Payment ProcessingEnglishLearn the definition of electronic funds transfers and the advantages they offer businesses that utilize them.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/woman-transfer-funds-of-computer-phone.jpghttps://quickbooks.intuit.com/ca/resources/payment-processing/what-is-an-electronic-funds-transfer/What is an Electronic Funds Transfer?

What is an Electronic Funds Transfer?

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Electronic fund transfers are paperless payments made between businesses and financial institutions utilizing the payment networks of Canada and the United States. Financial institutions in North America participate in the inter-bank clearing of one-time or recurring electronic payments used in customer billing, collections, direct deposit payroll, and other web-based transactions. Transactions are secured through encryption and occur almost instantly. The advantages for businesses using EFT are numerous, including:

  • Increased cash management efficiency
  • Streamlined payment and collection processes
  • Improved customer and vendor relationships
  • Reduced exposure to fraudulent transactions
  • Reduced overhead expenses
  • No delayed or lost payments
  • More accurate reporting of transactions

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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