What does EFT stand for in the context of payments?

In the context of payments, EFT stands for Electronic Funds Transfer. This term refers to the electronic movement of money from one bank account to another, which can occur through various methods such as online banking, credit and debit card transactions, and automated clearinghouse (ACH) transactions. EFT is a vital component of modern financial systems, enabling quick and efficient transactions without the need for physical cash or paper checks.

The concept of EFT underscores the importance of technology in facilitating financial transactions, making it more convenient for consumers and businesses alike to manage their finances. It allows for real-time processing, reducing the time it takes for money to be available for use. Understanding this term is crucial for anyone involved in the payments industry, as it forms the basis for many of the services and products offered today.