EFT, or Electronic Funds Transfer, is a generic term that refers to the electronic movement of money from one bank account to another. (Note: We have covered Electronic funds transfer (EFT) earlier, so this is reiterating that concept in a brief way relevant to context.) EFT can encompass a variety of transfers: direct deposit of payroll is an EFT, transferring money via an ATM or online banking is an EFT, and services like wire transfers or ACH transactions are all forms of EFT . The key aspect is that it’s electronic – no physical paper instrument (like a check) is exchanged.
In many countries the term EFT is associated with specific payment networks; for instance, in Canada, “EFT” often refers to batch payments similar to ACH in the US. In Australia, the term “EFT” is commonly used for any bank transfer (distinct from BPAY or card payments). For businesses, using EFT means paying suppliers or employees by sending money directly to their bank accounts, which is efficient and secure. When someone says “I’ll EFT the money to you,” they imply they will do a bank transfer.
EFTs are typically processed through clearing houses; they can be nearly instant (as with some modern faster payment systems) or take a day or two (as in traditional ACH). Because it’s broad, any electronic payment including debit card transactions (which pull funds electronically) are under the EFT umbrella. In summary, EFT is a blanket term for digital money transfers between accounts, covering a range of electronic payment methods that have largely replaced paper checks in many contexts for convenience .
