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FREE online courses on ECOMMERCE FUNDAMENTALS - Electronic Payment Systems
- Electronic checks and funds transfer |
Electronic funds transfer (EFT) consists of three forms of
transactions:
·
Paying fees through the ATM
(Automatic Teller Machine) network
·
Paying bills through monthly
bank account deductions
·
Transfer of large sums of
money among banks across the world
Electronic checking pertains to the use of networking
services to issue and process payments that emulate real world checking. The
payer issues a digital check to the payee and the payee deposits it in the bank
to redeem the money. Each transaction is carried over the Internet.
Electronic checking
differs from EFT in several ways. For electronic checking,
electronic versions of
checks are issued, received and processed. So, the
payee issues an electronic
check
for each payment. For EFT, automatic
withdrawals are made for monthly bills or other fixed payments; no checks
are issued.
