Definition of Electronic Fund Transfer

Kanzka Razan  Venir

EFT’ stands for Electronic Fund Transfer. It is a general term for all transactions made electronically, without actual banknote transfers. EFT can be explained by a simple example: – if we buy an item from a store and pay for it using our debit or credit card, then we do not provide money in the form of actual banknotes. Transactions are made with details derived from the card. EFT also includes those transactions, which can occur between banks, bank to customer, and customer to bank, or other types. The key term in EFT is that it does not involve real transfers of actual exchanges of banknotes.