- Apply for a Mortgage
- Contact Us
- Mortgage News
- Library & Statistics
- Rates & Tools
- Mortgage Services
Mortgage Super Brokers > Library & Listings > Glossary > Definition: Electronic Funds Transfer (EFT)
Search the Glossary
Canadian Financial, Real Estate and Mortgage Glossary
How often this word is used
62% - Often
62% - Often
Electronic Funds Transfer
|Notes:||Also known as e-Transfer.|
|Tags:||banking, commerce, computers, settlement|
Definition of electronic funds transfer (EFT)
- electronic funds transfer (EFT)
- 1. The transfer of money between accounts using consumer electronic systems such as automated teller machines (ATMs) or electronic bill payments. Electronic funds transfer (EFT) at the point of sale (POS). A payment option which allows consumers to pay for purchases by transferring funds directly from their accounts to a merchant's accounts.
Related Terms and Acronyms:
- bill presentment An online system that allows customers to receive and view the bill on a computer, and then pay the bill electronically. Users can pay their bills immediately and the money is transferred from the account.
- debit card (DC) A payment card that is linked directly to a customer's bank account. Some cards require a personal identification number. Others require a customer's signature. A PIN-based or direct debit card removes a purchase price from a customer's chequing account almost immediately. A signature-based or deferred debit card has a Visa or MasterCard logo and removes the purchase price from a customer's bank account in two or three days.
- electronic commerce The purchase or sale of products and services through an electronic system such as the Internet.
electronic funds transfer at point of sale (EFTPOS)
Electronic funds transfer (EFT) at the point of sale (POS).
➥ Also written as EFT/POS.
electronic funds transfer system (EFTS)
➥ Also known as e-Transfer System.
- interac Canada's largest shared network of ATMs. It allows cardholders to access their accounts from any ATM on the network regardless of which financial institution owns the machine.
- Interac Direct Payment (IDP) A method of paying for goods and services electronically with the funds taken immediately and directly from your bank account and transferred directly into the merchant's account. You use your banking card to do this.
- international banking The operation of bank branches and subsidiaries located outside Canada. This area of banking also includes the supervision of correspondent banking relationships, foreign exchange trading, and trade finance.
- online debit card A method of payment in the form of a card that immediately deducts funds from a person's bank account when used. The card may have a VISA or MasterCard logo on it, or just the name of the bank that issued the card, similar to an ATM card.
- settlement points Regional collection points in the clearing and settlement system operated by the Canadian Payments Association. Settlement points forward each bank's regional balance to the Bank of Canada in Ottawa at the end of each day to allow the central bank to adjust the banks' balances with the central bank.
More Related Terms and Acronyms
Search the Glossary
Mortgage CalculatorThe new mortgage calculator was built from the ground up to make it easier for you to find the best mortgage for your unique financial situation. Try it and find out what you can afford to pay on your next home.
Mortgage RatesCompetition keeps the banks on their toes. If the banks had it their way, mortgage brokers simply wouldn't exist, and they could keep their rates high. Don't let the banks rest on their laurels; apply today and get a great mortgage rate.