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Electronic Funds Transfer
(EFT)
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What It
Is and How It Works |
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EFT
is a method for transferring money automatically
by using the facilities of the Automated
Clearing House (ACH), an
entity associated with the Federal Reserve Banks.
EFT is the only system by which a merchant can
initiate a transaction to collect money from the
bank account of a customer located anywhere in
the USA. In addition, it can be used to transfer
money outwardly to pay bills.
One
of the most important features of EFT collection
is that the money is automatically transferred on
the DUE DATE as CASH, not uncollected funds. The
cost of collection via EFT is less than the cost
of conventional methods of bill collecting, using
statements, mail, postage, employee costs, etc.
EFT costs are based on the number of
transactions, regardless of the dollar size, and
this cost with very large volume is negotiable.
In conjunction with lower per transaction costs,
there are lower charges for a bounced check.
More
information about EFT/ACH:
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Who Needs
This Solution? |
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Who
does EFT? Only banks or financial corporations
with bank guarantees may transmit directly into
the EFT network.
EFT
is an excellent choice for companies with web
sites, future service and membership based
companies, such as health clubs, leasing and loan
companies, subscriptions, and insurance
companies, etc.
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Electronic
Funds Transfer (EFT) Resources |
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These
companies can help set you up with EFT for your
business:
Know
of a good EFT provider? Let us know!
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