What is EFT?

[bill mates]

It is a Cyber-based systems used to perform financial transactions electronically.

Some of them are also known with the following concepts -

a) cardholder-initiated transactions, where a cardholder makes use of a payment card
b) electronic payments by businesses, including salary payments
c) electronic check clearing

Nice with money, i am mates

[jason s]

An EFT may include some disadvantages compared with traditional systems.
Some of the drawbacks are as follows--

1. Concentration of control-
The strength of the internal control structure which occurs by the
dissociation of duties structured management reporting may got reduced.
Due to EFT management relies more and more on computer systems. Like
this placing controls in the hands of less individuals thus potentially
increasing risk. Although computerized controls can reduce the chances for
human errors, but any control deficiency (accidentally) can cause a greater
loss like over payment and over production.


2. Data processing, application, and communication errors- Errors
caused on computer processing & communication systems may result in
transmission of incorrect trading information or reporting of inaccurate
information to management.Failures or application errors or can also
result in significant losses to trading partners.

3. Potential loss of management and audit trails- In special cases
EFT data may not be maintained for a long time. Therefore the
entity may not be provided due to lack of proper consideration of
legal and auditing issues.

[Shane Phillips]

Well, i would frame it as limitations more than disadvantages.

[jason s]

limitations are application that a particular system lacks

or making it disadvantageous to use.....

[Shane Phillips]

Different Perceptions

[webhappy]

I have never done an electronic funds transfer to pay for anything online, but I have used it to pay for my bills from my bank account before. I don't think this is a good payment method for online stores.

[clarabean]

Would this application allow a web merchant to be able to allow electronic fund transfers by their customers, as in replacing a merchant account? Or am I misunderstanding what is being discussed?

[carl owen]

You are not misunderstanding what is being discussed here A web merchant can use this application to allow the customers to pay money online ( Electronic Funds Transfer ). The merchant can also provide payment cards to the customers and allow them to pay via payment card. It is very useful for small business owners as they can provide there customers with easy payment facilities and can receive the payments faster. The information regarding the payments can be sent via emails.