Electronic Funds Transfer

Definition

• The transfer of money between accounts using consumer electronic systems such as automated teller machines (ATMs) or electronic bill payments. Electronic funds transfer (EFT) at the point of sale (POS). A payment option which allows consumers to pay for purchases by transferring funds directly from their accounts to a merchant's accounts.

Notes
Also known as e-Transfer.

Synonyms
e-funds transfer

Acronyms
EFT

Related Terms and Acronyms

• Automated Teller Machine (ATM) — Acronym, Canada,
  • A terminal activated by a magnetically encoded card that allows customers of a bank or other financial institution to conduct everyday banking tasks such as deposits, withdrawals and transfers between accounts. An interconnection of these terminals allows customers to conduct certain transactions around the nation and the world; usually subject to a surcharge fee.
  ➥ See also Automated Banking Machine (ABM).
• Balance Transfer Fee — Definition,
  • Fee charged customers for transferring an outstanding balance from one card to another.
• Bank Wire — Definition,
  • An electronic payment system for the transfer of money between banks.
• Bill Presentment — Definition,
  • An online system that allows customers to receive and view the bill on a computer, and then pay the bill electronically. Users can pay their bills immediately and the money is transferred from the account.
• Debit Card (DC) — Acronym, Important,
  • A payment card that is linked directly to a customer's bank account. Some cards require a personal identification number. Others require a customer's signature. A PIN-based or direct debit card removes a purchase price from a customer's chequing account almost immediately. A signature-based or deferred debit card has a Visa or MasterCard logo and removes the purchase price from a customer's bank account in two or three days.
• E-cheque — Definition,
  • An electronic version of a paper cheque. The account holder writes an e-cheque using a computer or other type of electronic device and transmits the e-cheque to the payee electronically. Like paper cheques, e-cheques are signed by the payer and endorsed by the payee. Rather than handwritten or machine-stamped signatures, however, e-cheques are affixed with digital signatures, using a combination of smart cards and digital certificates. The payee deposits the e-cheque, receives credit, and the payee's bank clears the e-cheque to the paying bank. The paying bank validates the e-cheque and then charges the cheque writer's account.
• EFT/POS — Definition,
  • Electronic funds transfer (EFT) at the point of sale (POS).
• Electronic Cash — Definition,
  • Also known as e-cash. A system used to transfer cash over the Internet to pay for goods and service.
• Electronic Commerce — Definition,
  • The purchase or sale of products and services through an electronic system such as the Internet.
• Electronic Funds Transfer Act (EFTA) — Acronym,
• Electronic Funds Transfer at Point of Sale (EFTPOS) — Acronym,
  • Electronic funds transfer (EFT) at the point of sale (POS).
  ➥ Also written as EFT/POS.
• Electronic Funds Transfer Payment System (EFTPS) — Acronym,
• Electronic Funds Transfer System (EFTS) — Acronym,
  ➥ Also known as e-Transfer System.
• Interac — Definition,
  • Canada's largest shared network of ATMs. It allows cardholders to access their accounts from any ATM on the network regardless of which financial institution owns the machine.
• Interac Direct Payment (IDP) — Acronym,
  • A method of paying for goods and services electronically with the funds taken immediately and directly from your bank account and transferred directly into the merchant's account. You use your banking card to do this.
• International Banking — Definition,
  • The operation of bank branches and subsidiaries located outside Canada. This area of banking also includes the supervision of correspondent banking relationships, foreign exchange trading, and trade finance.
• Online Debit Card — Definition,
  • A method of payment in the form of a card that immediately deducts funds from a person's bank account when used. The card may have a VISA or MasterCard logo on it, or just the name of the bank that issued the card, similar to an ATM card.
• Settlement Points — Definition,
  • Regional collection points in the clearing and settlement system operated by the Canadian Payments Association. Settlement points forward each bank's regional balance to the Bank of Canada in Ottawa at the end of each day to allow the central bank to adjust the banks' balances with the central bank.