Electronic funds transfers (EFTs) can offer more convenience, accuracy, and security than other payment options. They allow quick access to funds and keep a digital record of transactions for accounting purposes. You need to know the ins and outs of EFTs to make your payment as easy and convenient as possible. Here’s more information about EFT payment processing:
What Is an EFT?
An EFT is a blanket term for payment technologies that facilitate the electronic transfer of money between individuals, banks, and businesses. One of the first EFT technologies to enter the financial services market was the automated teller machine (ATM), which allowed people to withdraw and deposit money without visiting their banks. Over time, EFT networking has grown to include payment technologies like direct deposit, electronic cheques, and wire transfers.
Types of EFT Technologies
You can send and receive money through various EFT options, including:
The difference between a paper and an electronic cheque is that payment processing providers deposit the latter electronically. They use an automated clearing house (ACH) tracing number, an individual’s or company’s bank account number, and a routing number to process electronic cheques. To keep customer data safe from breaches, payment processors can use tokenization.
Debit and Credit Cards
These cards can be issued by banks or credit unions to help individuals pay for services or move money between institutions without using cash. Clients can authorize debit and credit card payments online, over the phone, or physically.
This EFT technology allows clients to make high-value payments online. It’s one of the most effective ways to send large sums of money.
This technology allows customers to transfer money directly to your bank account electronically. You can use it to pay employees or suppliers for convenience as it’s fast and hassle-free.
How Long Does EFT Payment Processing Take?
EFTs can be lucrative and practical in today’s competitive business spaces since they’re faster and more convenient. Depending on several factors, EFT processing can take one to four days. Here are factors that may influence how fast your payment can be processed:
Your Payment Processor
Some payment processing providers are more efficient than others, so they can offer faster processing. Always ask about a provider’s processing speed before you decide to work with them. The quicker their processing, the better your business will run.
EFTs eliminate the need for customers to visit financial institutions to authorize payments. Since payment processing still involves banks, you need to consider their working days. Payments made towards the end of the week may take longer than those made at the beginning.
This is a key determinant for international businesses. Domestic fund transfers can take a shorter time than international fund transfers because international transfers sometimes involve intermediary banks. You may get money from your domestic clients faster than from global ones.
Can You Stop EFT Payments?
Payment processing providers take clients through different steps to verify payments as it’s impossible to stop them once initiated. Customers can only get their money back if all the stakeholders involved in the transaction authorize a refund. Payers can stop regular payments by giving a few days’ notice to stop them. The notice period is dependent on an individual financial institution’s regulations.
Are EFT Payments Suitable for Your Business?
Here are some benefits you may enjoy from using or allowing EFT payments in your business:
Your customers can make payments more conveniently if you allow EFTs. They don’t need to visit financial institutions to approve charges or enter their banking information multiple times since they can schedule recurring payments. Offering convenience may give you a competitive advantage over other businesses in your industry.
Traditional payment options give you little control over your finances. You have to wait for cheques to arrive by mail and for your bank to process them, which can take weeks. EFT technologies give you more control since they’re faster. Payment processing can take as little as a day, depending on your payment processor.
Choose EFTs, Choose Success
EFTs are a modern way to transfer money between people, banks, and companies. They’re often faster and more convenient for your clients, so they can help you gain a competitive edge. EFT payment processing can take one to four days, depending on your payment processing provider, the payment submission date, and your customers’ locations. Embrace the future of money transfer today by incorporating EFTs into your business.