EFT+(electronic+funds+transfer)

﻿EFT (Electronics Funds Transfer) media type="custom" key="7366057" width="90" height="90"


 * This is the computer-based systems used to perform financial transactions electronically. EFT (Electronic Funds Transfer) is a method of payment where banks can move money between one bank account and another electronically over computer networks.
 * Money does not have to be handed in is cash.
 * Businesses use EFT to transfer money from the business's bank account to the employees' bank accounts. Wages and salaries are now largely computerised using Electronic Funds Transfer.
 * One of the most widely-used EFT programs is Direct Deposit, in which payroll is deposited straight into an employee's bank account.
 * The growing popularity of EFT for online bill payment is paving the way for a **paperless** universe where checks, stamps, envelopes, and paper bills are obsolete. However, the number of companies who send and receive bills through the Internet is still relatively small.
 * We encounter EFT in our everyday lives. When we are at a store we can pay using debit cards or credit cards, this is EFTPOS (electronic funds transfer at point of sale)


 * EFT offers several services that consumers may find practical:**
 * ATM (automatic teller machine)
 * Direct Deposit
 * Pay-by-Phone Systems
 * Personal Computer Banking
 * Debit Card Purchase Transactions
 * Electronic Check Conversion


 * **Advantages of using EFT:**
 * It is **much faster** than having to make payments in cash.
 * It **reduces costs**. The money doesn't have to be physically counted.
 * It **increases safety**. There is no longer a need to hold large sums of cash on the premises. This reduces the risk of theft. The number of security guards can be reduced.
 * Payments can be made **instantly**.
 * Mistakes can be **quickly rectified**. If the incorrect salary is paid, this can be adjusted as soon as the problem is identified. || [[image:http://image.shutterstock.com/display_pic_with_logo/86570/86570,1174946896,9/stock-photo-wallet-full-of-cash-ready-for-some-investment-2953781.jpg width="405" height="288" align="center"]] ||
 * = [[image:http://www.esat.kuleuven.be/cosic/thesis/2010/phishing.jpg width="287" height="222" align="center"]] || ** Disadvantages of using EFT: **
 * **Security** is a problem. Scams have appeared in attemps to make customers give away bank account information.
 * Customers sometimes pay for items that are **never received**.
 * **Identity theft**. The available security measures can prevent the sensitive information from being exposed. But it is important to use virus protection or firewalls for your computer. It is important to carry out money transactions over a secure server.
 * **A lot of money is spent** on the security of the network itself. ||