What is an Electronic Funds Transfer - Leigh Barker Tangible Assets

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What is an Electronic Funds Transfer

• Leigh Barker Tangible Assets

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• When money is transferred from one bank account
  to another without the use of paper documents and
  without the direct involvement of bank staff this
  is referred to as an electronic funds transfer.
• In contrast to traditional payment methods new
  payment systems have been developed as the
  internet has evolved.

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• Initially banks changed the method that interbank
  payments were processed followed shortly
  thereafter at the retail banking level whereby
  corporate and retail customers were offered
  electronic banking platforms to process incoming
  and outgoing payments.
• Electronic funds transfer systems have the effect
  of reducing administrative costs as the direct
  involvement of bank staff is not required.

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• Due to potential cost saving benefits electronic
  funds transfer systems are promoted by most
  financial institutions.
• Electronic funds transfer systems have been
  applied to such transactions as payroll related
  payments, debit or credit transfers, mortgage
  payments etc.

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• Automatic Teller Machine (ATM) is an electronic
  terminal that permits banking any time. To
  withdraw cash, make deposits or transfer funds
  using an ATM card pin.
• Pay by Phone systems permit the user to contact
  the biller to pay or transfer funds between
  account

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• Payment transactions permits the user to make
  purchases with a debit card. Transactions can
  take place in person, online or by telephone
• Initially electronic funds transfer was driven by
  banks and aimed at efficiency gains and cost
  savings whereas today the focus is on e-commerce
  solutions to address how consumers access and pay
  for new services.

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Leigh Barker Tangible Assets

• Please note Prepared by Leigh Barker Tangible
  Assets, Accountant, Portfolio Finance, Gordon,
  West Pennant Hills and MWC Group.
• Note that all content of this blog is general in
  nature and anyone intending to apply the
  information to practical circumstances should
  seek professional advice to independently verify
  their interpretation and the informations
  applicability to their particular circumstance.