Do you have an experience using electronic transfer funds (EFT) using your online banking or credit card for your merchants?
Electronic Funds Transfer (EFT) is a system of transferring money from one bank account directly to another without any paper money changing hands.
EFT definition as a transfer of funds using electronic method such as an telephone, ATM, card, handphone or electronic terminal. It is a new trend for merchants. It is fast, secure and reliable to do transaction via online. One of the most widely-used EFT programs is Direct Deposit, in which payroll is deposited straight into an employee’s bank account,
Many merchant accounts using EFT such as retail, mail order, Internet, restaurant are using on electronic processing for a customer/merchant transaction. This type of transaction will include in Credit, debit, and smart card products. It is more efficient because it will quickly capture payment information at the point-of-sale, and transmit it to the payment network for authorization. The final, important step is the electronic transfer of funds from the transaction to the merchant’s bank account.
Merchant account providers supply high-speed equipment terminals and printers that process card-present (point-of-sale) and card-not-present transactions. This includes retail stores and restaurants where the customer presents a credit card for payment, and mail order and Internet businesses where the merchant never sees the credit card. The latter businesses do require a special merchant account because of the greater risks involved, but electronic transfer of funds to the merchant is not adversely affected.
In fact, electronic funding applies to online check payments and cellphone orders as well. ACH check processing is swift and dependable, with transfer of funds within 48 hours. Cellphone transactions are great for on-the-go merchants and customers, and transaction funds are handled efficiently so the merchant is assured of proper credit.
It is become important for merchants especially when most of customers use it. It will give benefit to customer and seller.