Electronic Funds Transfer

Business, Legal & Accounting Glossary

Definition: Electronic Funds Transfer



Full Definition of Electronic Funds Transfer


Electronic funds transfer, or EFT, is a system for transferring money from one bank to another. In electronic funds transfer, there is no paper money involved. With electronic funds transfer, dollar amounts are transferred via the Automated Clearing House network, a system connecting all financial institutions in the United States. Funds can be transferred via credit card, various point-of-sale transactions, an ATM, or direct deposit (an employee payroll option utilizing electronic funds transfer). Electronic funds transfer is popular as a way to pay bills, and also to purchase shares of certain investments, such as stocks and mutual funds. To participate in electronic funds transfer as a way to buy investments, one must first elect this option on one’s account form.


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Electronic Funds Transfer. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/electronic-funds-transfer/ (accessed: July 16, 2020).
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Electronic Funds Transfer. PayrollHeaven.com. Retrieved July 16, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/electronic-funds-transfer/

Definition Sources


Definitions for Electronic Funds Transfer are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February, 2020 | 0 Views.