Business glossary
Electronic funds transfer (EFT)
An electronic movement of money between financial accounts.
Example
A customer pays an invoice through an electronic bank transfer. Keep the bank transaction reference and match the amount to the invoice when settlement is confirmed.
How it differs from related terms
EFT is a broad category, not one specific transfer network. Initiation, processing and settlement are distinct events. Use the bank's confirmation to resolve whether funds have arrived, and keep the invoice reference with the payment record.
Frequently asked questions
What is an example of electronic funds transfer?
A customer pays an invoice through an electronic bank transfer. Keep the bank transaction reference and match the amount to the invoice when settlement is confirmed.
How should electronic funds transfer be interpreted?
EFT is a broad category, not one specific transfer network. Initiation, processing and settlement are distinct events. Use the bank's confirmation to resolve whether funds have arrived, and keep the invoice reference with the payment record.