Electronic Fund Transfer - How does the electronic fund transfer work?

Q: How does the electronic fund transfer work?

An electronic fund transfer moves money from one account to another. The accounts can be at the same financial institution or two different financial institutions. The transaction is done electronically over a computerized network. EFT transactions are also referred to as electronic banking.

Answer

Sending money from one bank account to another is the job of an electronic fund transfer. The banks involved need not be the same, or even distinct, financial institutions to hold the accounts. A computerized network is utilized to complete the transaction. Electronic funds transfers (EFTs) are often known as online banking.

Electronic Fund Transfer - How does the electronic fund transfer work?

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