Electronic Funds Transfer is the electronic exchange of cash between different bank accounts within a

single or different establishments. It is operated by software frameworks and does not involve any direct
involvement of bank staff. It is also referred to as electronic checks or e-checks for short. But what
exactly is Electronic Funds Transfer or ETC? It is the technological advancement in the finance industry.
It is the innovation in the process of payments and funds transfer. It is a way to put an end to the
paperwork or minimize it in the banking industry. It is a much easier way of funds transfer and is a lot
less time consuming hence it improves the relationship between individuals and firms such as it attracts
potential clients and expands market shares in the businesses.

The ETC is not just a single system of electronic banking but is a system of further subsystems. Which
includes the Preauthorization Procedures, Automated banking through EFT terminals and, Point of scale
operations.

The preauthorization Procedures involves regular payments such as paychecks, welfare payments,
retirement checks, and stock dividends, housing bills, auto installments, and utilities. Another form of
pre authorization procedures is paying bills through the phone. This allows clients to utilize the phone to
approve financial establishments to pay month to month bills (through electronic exchanges) or to
exchange stores from investment funds to a financial records or the other way around.

Another form of EFT is the Automated Banking. Depositing and withdrawing money and cashing checks
has now become paper free since transactions are no longer required to have paper work. These
facilities work on a 24 hour basis. One such example is the Automated Teller Machine or most
commonly known as the ATMs, which help us make transactions anywhere and in the shortest possible
time. Credit cards and debit cards are the most common in this time since they not only help withdraw
or deposit money but also helps us make purchases at any shop which has the EFT system. What
happens when you buy something using your credit or debit card is that money is instantly paid to the
shop keeper while the same amount is deducted from your bank account. Point of sale or Point of
Purchase is the exact time and place where a transaction takes place. The service provider in exchange
for any goods or services takes money from the client electronically via debit cards. The service provider
then prints a receipt with the exact point of sale printed on it with the exact amount of cash transferred.
This invoice is also now being in the form of electronic message in order to make the transaction
completely paper free. Weighing scales, barcode scanners, and cash registers help calculate the amount
of cash owed by the customer. There are certain point of sale softwares which help aiding in the
transactions. Such softwares also keep a record of inventory management, previous transactions and
warehousing.

In the Age of High Technology money endeavors to persevere through the opposition with electronic
cash, since an ever increasing number of individuals want to have virtual wallets. It is clear, electronic
installment frameworks have a scope of experts in contrast with customary keeping money
administrations:

This is a time saving funds transfer. Cash exchange between virtual records for the most part takes a
couple of minutes, while a wire exchange or a postal one may take a few days. Regardless of whether
somebody is anxious to bring his payment under control, it is important to be sufficiently tolerant to
record all the frivolous costs, which regularly takes an expansive piece of the aggregate sum of
distributions. The virtual record contains the historical backdrop of all exchanges demonstrating the
store and the sum you spent. What's more, you can check it whenever you need. This favorable position
of electronic installment framework is truly critical for this situation. Decreased danger of misfortune
and robbery. You cannot overlook your virtual wallet some place and it cannot be taken away by
criminals. It is easy to understand and has an understandable User Interface. Apart from that there is
online help available. In any case you can simply find a solution utilizing the gatherings regarding the
matter. Every one of the exchanges can be performed whenever, and wherever.

Having indicated the outstanding advantages of EFT, it is important to specify its disadvantages. The
quantity of exchanges every day are limited to a certain amount for every different client It has a danger
of being hacked and can cause issues like identity theft and data loss and in worse cases loss of cash
from bank accounts. The data about every one of the exchanges, including the sum, time and the
customer are all kept in the database of the installment framework. This does not allow anonymity and
hence can be used by intelligence agencies to know almost everything about a single person. It also
requires the availability of the internet in order to have access to ones online account.