If your business does not accept EFT or electronic funds transfer, you should seriously consider getting such service now. In a time when people are becoming more reliant on online transactions, it is but necessary for your business to go electronic as well. With this service, your company would be able to collect money and payments electronically. Besides, this type of funds transfer is not only efficient, it is also safe and secure. In the UK, there are moves to totally eliminate paper checks. If this goes ahead in that country, other places in Europe and even the United States will surely consider following this directive. Thus, before such a move is enforced, your business or company should be prepared.
In order to better understand what EFT is all about, you have to know its definition. In simple terms, electronic funds transfer is simply the transfer of money between accounts through secured electronic signals and codes. Although this is a relatively new method of monetary transaction, a lot of companies, consumers and even governments are using this system. For one, it offers a more cost efficient way to do business. It is not really surprising that even some government agencies are encouraging people to pay their dues through such a system.
Some people are afraid of EFT because of news about online security threats and many other electronic system frauds. Although cyber threats are real, you need to understand that there are a lot of security measures and regulations in place in order to protect companies and consumers. In fact, there is the Law of Electronic Funds Transfer that regulates the progress, technical improvements and trends of this kind of banking service. Banks and other companies that offer such a service must adhere to the guidelines, clauses and provisions of this law. There are legal rights, obligations and duties that needed to be observed by financial institutions, businesses and consumers that will be using such system. This means that if you use this method of funds transfer, you are protected by laws.
The benefits of EFT are endless. This system is known to help save time and money in processing payments and collections. As a result, fees associated to this service are quite low in comparison to traditional check clearing fees. Aside from minimizing the requirements of writing paper checks, another advantage of electronic funds transfer is the elimination of postage fees. Using this new mode of money transfer can also make record keeping easier and simpler.
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