An EFT (Electronic Funds Transfer) payment is a type of electronic payment that allows money to be transferred directly from one bank account to another, including direct deposit of paychecks, automatic bill payments, and online money transfers. EFT payments are more secure and efficient than traditional paper-based payment methods such as paper checks.
There are several types of EFT payments, including:
Each type has its own unique features and capabilities, and some may be better suited to certain types of transactions than others.
Money transfer apps, such as Venmo, CashApp and PayPal, use peer-to-peer EFT technology, which enables users to transfer funds to another user’s account on the same app.
International EFT payments, also known as wire transfers, are used for large-dollar transactions between bank accounts. They’re typically for business transactions from one country to another, international money transfers, and other types of cross-border payments.
International wire transfers are usually done through the SWIFT (Society for Worldwide Interbank Financial Telecommunication) network, which connects banks and financial institutions around the world. Banks use SWIFT codes to identify the sender and recipient, and to facilitate the transfer.
Most countries and regions have their own methods of EFT payment. For example, European countries use SEPA, while the US mostly uses International ACH Transactions to facilitate cross-border transactions. SEPA and ACH, which is regulated by NACHA (National Automated Clearing House Association), both offer secure and efficient international payments.
International EFT payments may take longer and have additional fees, such as foreign exchange fees, compared to domestic EFT payments. The process and cost of international wire transfers can also vary depending on the banks involved and the countries being sent to and from.
It's also worth noting that some countries may have restrictions on international money transfers and may require additional documentation or compliance with regulatory requirements.
Learn more: What is an ACH payment?
There are several benefits of EFT payments for businesses, including:
In summary, EFT payments provide your business with a more efficient, secure, and cost-effective way to process payments and streamline your transaction flows.
Checkout.com can help your business accept more payment methods, including EFT methods such as ACH in the US and SEPA in Europe. With 130 million US bank accounts using the ACH network, and over 520 million customers in 36 nations using SEPA, accepting more payment methods with Checkout.com can help widen your customer base.
But that’s just the start. For the entire list of payment methods your business can accept through Checkout.com, read our full Payment Methods Directory and find the perfect payment models for your business.