What Are Electronic Funds Transfer Service?
EFT banking enables bank account holders to access their money remotely without interacting with a physical ATM. EFT payments use physical debit cards issued by a bank or credit union to move money from one account to another. Account-holders make deposits, withdraw cash, and transfer money between accounts. Today, personal computer banking is the most common form of electronic banking in the United States.
Today, commerce increasingly relies on electronic communications to process financial transactions efficiently and affordably. Electronic funds transfer service is a generic term that describes a variety of electronic payments, including automated clearing houses (ACH) and electronic cash transfers. Together they offer the possibility to make fast and reliable payments at any time—an issue of the EFT system used in the United States.
If you make an electronic transfer from your account to others to whom you owe money in advance, please stop paying the pre-authorized transfer to another account. Your credit union accepts recurring payments. On your instructions, we will pay you for recurring transactions such as cash, checks, credit cards, and debit cards.
The Controller’s Office reserves the right to make a payment through a more cost-effective mechanism if it is used to make the payment, as is the case with most domestic payments. If a situation requires immediate goods and funds when processing a transaction, we use a credit card, check, debit card, or other payment methods.
Regulation Limits
The federal regulation limits the number of electronic money transfers that can be made to a total of $6 per statement per cycle. This limit applies to pre-authorized transfers that may have been arranged by third parties. The transfer restriction does not apply to purchases made with a Visa debit card, automatic loan payments from a bank account or withdrawals or transfers from an ATM. The electronic money transfer services described in this document may create certain rights and obligations in relation to these services.
Examples of EFT Services
EFT transactions with consumer accounts are covered by the Electronic Money Transfer Act.
A trader or other payee may be authorized to make a one-time electronic payment to an account using information from a check to pay for a purchase or settle an invoice. The trader may allow the electronic collection of a fee in connection with the return of the check due to insufficient or unavailable funds.
An integral part of the EFT network is credit transfers, which are the most common way of sending money for large, high-quality payments. Direct deposit is facilitated by direct deposit service providers who maintain payrolls and are approved by the Federal Deposit Insurance Corporation and several financial institutions.