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Electronic funds transfers allow you to digitally move money across an online network, either between banks or person to person. As the transfers are digital, there's no need for paper documents. This speeds the process up considerably and makes EFTs more accessible than some alternative methods of sending money.

EFTs are usually complete within 1-2 business days. Sometimes, these can be processed on the same day or in real-time. Wire transfers typically take 3-5 business days to move money between bank accounts.

Because direct deposits are electronic fund transfers that always go through the ACH network, you will need to obtain an employee's bank name, account number and bank routing number, as well as the type of account. Once this information is received, you can set up the direct deposit details with your own bank account.

One further distinction is that EFTs can only be used to transfer money between bank accounts in your name, whereas Interac e-Transfers can be used to send money to a third party—like the colleague who spotted you lunch money the day you forgot your wallet.

Examples of common electronic funds transfer transactions include the following: Automatic teller machines (ATM) Direct deposit payroll systems. Direct payments between buyer-seller businesses.

An electronic funds transfer (EFT), or direct deposit, is a digital movement of money from one bank account to another. These transfers take place independently from bank employees. As a digital transaction, there is no need for paper documents.

An ACH transfer refers to the process where the money is moved from one financial institution to another. An EFT payment refers to all electronic payments when money is transferred between two Canadian accounts that are not done via wire transfer.

Electronic funds transfer (EFT) is a transfer of funds is initiated through an electronic terminal, telephone, computer (including on-line banking) or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer's account.