Electronic Funds Transfer

Glossary

Electronic Funds Transfer

Glossary

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Transfer of money initiated through electronic terminal, automated teller machine, computer, telephone, or magnetic tape. In the late 1990s, this increasingly includes transfer initiated via the Web. The term also applies to credit card and automated bill payments.

The benefits of using EFT include reduced administrative costs, increased efficiency and greater security. The growing popularity of electronic funds transfer (EFT) is slowly reducing the need for paper bills.