General Question

janbb's avatar

Follow up question: What's the difference between online bill pay and EFT?

Asked by janbb (48473 points ) August 4th, 2014

The impression I am getting is that in online bill pay you set up the payee’s account info but you control when the bill is actually paid. In EFT, the payee has been given the right to take a certain amount out of your checking account automatically and they then notify you. Is this correct?

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4 Answers

Pachy's avatar

EFT stands for electronic exchange, transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems. So all banking transactions online, whether you do them manually or set them up as automatic, are EFTs.

SadieMartinPaul's avatar

Agree with @Pachy. EFT = electronic funds transfer, or transfers from one account to another through computer-based systems. The term is broad and covers several different types of transactions – direct deposits, online bill payments, one-time transfers, and debit or credit card purchases.

jaytkay's avatar

Most of us only see the term where “the payee has been given the right to take a certain amount out of your checking account automatically”.

I have a form on my desk at this moment – “Electronic Funds Transfer (EFT) Authorization”.

elbanditoroso's avatar

Bill pay is a subset of EFT.

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