Electronic Funds Transfer

[kst$]

And they wonder why people espeically young people are so confused.

Electronic Funds Transfer

Filed Under: Banking, Savings Account, Checking Account
Let's look at the role of the major parties involved in an electronic payment: payor, payee, the respective financial institutions and the payments system.

The payor is the party that makes the payment. The payee is the party that receives the payment. The payor uses a payments system to transfer funds, or remit payment, to the payee. Historically, a check is used to make payment. After the payee deposits the check, her bank and the payor's bank process the transaction. This process is called settlement.

When the payor's bank clears the funds, it debits the payor's account and credits the payee bank's account. The payee's bank, in turn, credits the payee's account.

Today, electronic data interchange (EDI) has replaced a great deal read on

[carol b]

Walmart is one of the places that now does EFT. If you pay
by check they scan it and give the check back to you. You
dont have to fill it out or anything. When they are done you
sign a reciept. I hate it because you can't shop a day before
your paycheck goes in you have to wait till the funds show up.

[I-luvmoney]

i think this might cut down on a lot of bad checks for people who are in the habit of doing this to themselves and to others this was a great idea form banks and i am glad they came up with this