GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Electronic Funds Transfer


Synonyms:e-funds transfer
Acronyms &
abbreviations:
EFT
Notes:Also known as e-Transfer.
Filed Under: financial-banking
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.

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