Electronic Funds 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, although 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.
BEFTN
facilitates
the transmission of payments between the banks electronically, which makes it faster
and efficient means of inter-bank clearing
over the existing
paper-based system i.e. BACPS. It is able to handle a wide variety of credit transfers such as payroll, foreign and domestic
remittances, social security, company dividends, retirement, expense
reimbursement, bill payments, corporate
payments, government tax payments, social security payments and person to person payments. The system could handle debit transfers such as mortgage payments, loan payments, insurance premiums, utility
bill
payments, government tax payments, government
licenses and fees.