EFT is one of the things that you will encounter when you are looking for electronic financial transactions. In simple terms, EFT or electronic fund transfer refers to the transfer of money from one account to another with the use of secured codes and electrical signals. Since the world is interconnected on the Internet, it would be easier for someone in North Carolina to transfer money to the account of a company in New York. Aside from using this system in paying your purchases in an online store, it is also useful in sending money to the account of your children, paying taxes, and making personal financial transactions on the Web. By the way, EFT also includes money transfers among the different banks and financial institutions all across the globe.
Since EFT is fast and easy, it can be used by unscrupulous individuals and fraudulent groups to launder money. In order to protect the integrity and security of this new payment method, the Federal Reserve supervises the transfer of funds among banks and financial institutions in the United States. Money that is wired to and from other countries must abide by the rules of the Federal Reserve. It is worth noting that there are guidelines and maximum amounts that are allowed to be transferred for a particular period of time. Again, such safety measures are in place to protect your security as well as to ensure that illegal elements will not use banks and financial organizations in the United States.
You should realize that EFT is not only beneficial to businesses. Individuals can also enjoy a lot of benefits using this payment system. Not only will you be able to save time in paying your bills and even your taxes with the help of EFT, but you can also use it to pay recurring bills. By the way, this is also more cost-effective than paying with paper checks. Remember that check books are not free. You have to pay by the booklet. If you use up your paper checks for your bills each month, you will end up spending a lot of money just buying check booklets.
It is worth stressing that EFT development and trends are governed by the law on Electronic Fund Transfer System. This provides a series of guidelines and clauses that have to do with all electronic transactions and clearances. To ensure that you get the best EFT systems, use only companies that offer tried and tested programs. In the end, having this payment system can greatly boost your business.