Electronic funds transfer (EFT)

Electronic Funds Transfer (EFT) is a form of Electronic Data Interchange (EDI) which is a method of electronically transmitting the data. EFT transactions enable the user to transfer funds from one account into a specific account, for example, monthly insurance premiums.

An Automated Clearing House (ACH) file is created that summarizes the transactions. The ACH file can be sent directly to the bank in a format that is accepted by most banks in North America.