What Is an Electronic Funds Transfer?
An EFT payment, put simply, is a way to send or receive money between bank accounts without the need for paper checks or cash. They encompass a wide variety of transactions and may also be called electronic payments or e-checks. They do not include accounts for loans or credit; EFTs refer to moving money between deposit accounts like checking or savings.
Some EFTs happen nearly instantly, such as when you're sending money with a peer-to-peer (P2P) payment app, or if you're paying with a digital wallet on a mobile phone. Traditional EFTs—such as when you submit payment for a bill—can take between one and three business days to process.
They're especially more secure and faster than their predecessor, the paper check, which can take a couple days to clear.
One of the best features of the EFT is its security. While transmitting over the internet involves risk, EFT is generally considered a safer payment method than a traditional paper check.
When it comes to EFT security, think of it as the vault that guards your financial treasures. Here's a rundown of the security features you'll often find in an EFT service providers arsenal:
- Encryption: Cashflow.io uses state-of-the-art cryptographic algorithms during data transmission (HTTPS with RSA 2048 bit key and SHA 256 certificate) and in our databases (AES 256 encryption keys).
- Multi-Factor Authentication (MFA): All platform users must login using a two factor authentication (2FA) and sending payments are secured by password restrictions.
- Fraud Detection: Our bank transfer partners use state-of-the-art fraud detection software with escalated alerts to human risk managers.
- Secure Protocols: EFT services follow stringent protocols and compliance standards, such as SOC 2 and ISO 27001.