You might have encountered the topic of EFT payments. Are you still uncertain of what they represent, why are they significant, and how they can benefit you? Let us briefly walk you through what is an EFT payment because the first step to setting one up is being familiar with the process.
What does EFT stand for?
EFT is an abbreviation for Electronic Funds Transfer, a money-moving establishment that allows its users to deposit payments via computer-based networking. It requires no explicit interference of banking staff.
These transactions may be known by other names as well, including e-checks or electronic checks (in the USA), bank payment (UK), or giro-transfer (standardly named in some European countries). The key convenience of the establishment is the choice of recurring or single-entry payment.
The conveniences of EFT payments
Some business owners fail to realize that payments, pointedly their management, are vital for the success of the business. Everyday business-to-bank coworking involves a nowhere near small amount of money transfers. With EFT, you are moving from endless envelope-stuffing to saving time and money, secure and stress-cutting online money processing.
These payments are overall faster, have higher security rates than wiring, checks, and standard credit cards. There is no signing, printing, and extra trips to the bank – everything vends account to account.
Finally, through using EFT, you have subscribed to transfers integrated in time and automated to a day that has been previously agreed upon. You are given great control over your general transactions.
How to set up EFT for your business
- You will be requested to complete an online form through which you introduce the system with the necessary data and parameters of your upcoming payments. In case any issues are detected in your application, you will be updated within one business day for rectification if needed.
- When the parameters are validated, you will receive a confirmation e-mail.
- The details of the transaction regarding the money amount will be received by your bank.
- Payment details will be accessible through general bank statement and billing statement, letting you know what amount you paid.
The general inconveniences
- You will vitally need a solid internet connection to operate your online account. Even though the Internet is no longer a luxury but rather a necessity, it is not available to absolutely everyone and everywhere, which directly disables you from operating freely and fully.
- Full transaction information, including your profile, money amounts, and personal info, are displayed in the system database. The info is accessible to the intelligence agency – it is your choice whether it is good to share it.
- Finally, the security issue is still open for discussion. Even though the system has the minimal threat of being broken into, chances for it can be compared to those of a common bank robbery. The worst cases include identity thefts, which induce a large amount of damage to the theft victims.
It is now easy to conclude that EFT payments simplify propelling businesses from an outdated system of paper-based transactions to modern, computer-based, online money moving.
With just a few simple steps to cover, online payments are on their way to help your business prosper. We strongly recommend you get to know more about our approach to EFT, and how we compare it to wiring processes and ACH automation.