did you know??????

Have you heard about the 'Electronic Fund Transfer'???? Actually I never heard too so let's check it out what are the thing. It have the related with ATM that we all use for withdrawal the money.

What are the 'Electronic Fund Transfer'?? 

• Electronic Fund Transfer (EFT) is a system of transferring money from one bank account directly to another without any paper money changing hands. One of the most widely-used EFT programs is Direct Deposit in which payroll is deposited straight into an employee's bank account. EFT refers to any transfer of funds initiated through an electronic terminal, including credit card, ATM, Fedwire and point-of-sale (POS) transactions. It is used for both credit transfers, such as payroll payments, and for debit transfers, such as mortgage payments.

• Transactions are processed by the bank through the Automated Clearing House (ACH) network, the secure transfer system that connects all U.S. financial institutions. For payments, funds are transferred electronically from one bank account to the billing company's bank, usually less than a day after the scheduled payment date.

• The growing popularity of EFT for online bill payment is paving the way for a paperless universe where checks, stamps, envelopes, and paper bills are obsolete. The benefits of EFT include reduced administrative costs, increased efficiency, simplified bookkeeping, and greater security. However, the number of companies who send and receive bills through the Internet is still relatively small.

• WAN may connects POS terminal (Point-of-Sale) in retail stores to bank EFT systems make us possible to use a credit card/debit card to pay for gas, groceries or other purchases at participating retail outlets.

Here the example of Electronic Fund Transfer :