Electronic Funds
Have you heard the term “electronic funds” before and wondered how people use these transfers to pay for goods and services?
An electronic funds transfer is operated by a computer, which follows instructions to remove funds from one account and deposit them into another. Electronic funds transfers can be used in a variety of ways. They can be made by producing a card such as a credit card, which will deposit funds into a seller's account using a computer or electronic machine. They can also be made by businesses, which will use a computer to deposit funds to their employees' accounts and to clear checks.
You may have used all these methods of electronic funds transfer before. However, probably the most common one you use in your everyday life is when you make purchases with your debit or credit card. You can obtain cash from using an automated teller machine (ATM) or use your card in a store to make a point of sale transaction (EFTPOS). If you're an internet shopper, you probably pay for your online purchases using a secure payment system that requires you to enter your personal information and the number of your debit or credit card.
Electronic funds transfers offer you a range of useful services. You can obtain refunds on goods that you return in a store. You can use an ATM machine to obtain balances on your current accounts and your credit card account, as well as withdrawing cash, depositing funds and transferring funds between your accounts. If you want to take cash out in a store, you can ask the clerk to give you a cash back along with your purchase. And if you want to make a payment to a third party's account you can generally do this online or via an ATM.
When an electronic funds transfer is processed, it must be authorized. This is usually done via a bank's computer system and transmitted to the seller's system. It can take literally seconds to authorize a payment, which is why electronic funds transfers have become such a popular way to pay.
For more infomation on transferring money worldwide choose from the list below. |
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Banking - Business Finances - Economics - Insurance - Investing
Major Purchases - Personal Finances - Stock Market - Taxes
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