Difference between Electronic Fund Transfer (EFT) and Automated Clearing House (ACH)

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ACH is also a way of transferring funds through electronic funds, therefore it will be considered in the EFT. However, EFT is an alternative payment to make payments instead of using a credit or debit card. The ACH system has been designed to avoid paper checks involved in previous transactions. However, credentials are not checked instantly in ACH payments as in the case of credit or debit card payments. ACH services generally serve as a bridge for banks as connecting devices whereas EFT can also refer to simple transactions involving only credit or debit in accounts conducted electronically.