What Is Electronic Funds Transfer (EFT)?
Any digital movement of money between bank accounts, including ACH, wire, and direct deposit.
Detailed Explanation
EFT eliminates checks and speeds settlement. Remittance details should accompany EFTs so recipients can match payments to invoices.
Example
The company switches from checks to EFT, cutting payment processing time from five days to one.
Why It Matters
Faster, cheaper, and more traceable than paper-based payment methods.
Related Resources
Related Payment Terms Terms
Get invoicing tips that actually help
Join 5,000+ freelancers and small business owners. One email per week with practical invoicing advice, tax tips, and product updates.
No spam, ever. Unsubscribe anytime.