Electronic funds transfer (EFT) is the electronic exchange or transfer of money from one account to another, within a single financial institution or across multiple institutions; through inter-connected computer-based systems.
We're talking about computer application software for processing electronic payments to and from others that may be downloaded from a global computer network.
Electronic payments processing and the electronic transfer of money for others; providing electronic processing of electronic funds transfer, ACH, credit card, debit card, electronic check and electronic, mobile and online payments.
The future of electronic funds payments is about real time, mobile and data. Money transfer online is now truly fast and secure for electronic funds.
Electronic Funds Transfer Association
& EMV Technology
The Electronic Funds Transfer Association has launched an Europay MasterCard and Visa (EMV) information website. But why?
It is because of migration of EMV technology to the American electronic payments industry. EMV is a security tandard designed to increase protection against the theft of payment card identification data.
Theft of this data could permit unauthorized access to a cardholder's funds. Currently the United States of America (U.S.A) is the only member of the G20 nations where banks that issue credit or debit cards do not use the EMV standard.
The implementation of EMV in the US of A is more complicated than anticipated. This complexity is due to the large number of card-issuing banks, ATM owners, payment networks, issuing and acquiring processing companies and merchants.
Large card brands like American Express, MasterCard and Visa have set target dates, some of which have already passed, for the adoption of the standard by different industry segments.
There is no shortage of information on EMV migration. Unfortunately, some of it is biased and some of it is just plain wrong.
Electronic funds transfer association has a good many years reputation as an honest broker of financial services information, and an objective observer of payment trends.
It's this reputation that EMV migration Update will bring to the EMV discussions. EMV information website which will be updated weekly will provide a compilation of the week's news on the EMV migration, as well as analysis.
Electronic Funds Transfer Act Regulation
The Consumer Debit Card Protection Act (CDCPA) was designed to increase consumer protections and reduce liability by fraud.
The CDCPA has help strengthen consumer protections for debit cardholders by capping liability the same as for credit cards.
Debit card use has just exploded in recent years, especially among young people, and consumer protections must keep pace.
Debit cards are used in much the same way as credit cards, so it makes no sense for credit card fraud liability to be capped at say 50 dollars/euros/pounds while debit cardholders can find themselves on the hook for 500 dollars/euros/pounds or more.
In light of the millions of consumers who have had their financial information stolen during one of the recent data breaches? It is important to take data security and the importance of consumer protections very seriously.
CDCPA has ensures that statutes for debit card protections are on par with those of credit cards, and will help consumers keep their wallets safe.
For years, a number of debit card campaigners have warned that because debit cards have weaker protections, all plastic is not created equated equal.
CDCPA has enabled debit card users should enjoy the same gold standard protections against fraud that credit card users have always had.
Credit cards are governed by the Truth in Lending Act ("TILA"), while debit cards are covered by the Electronic Funds Transfer Act ("EFTA").
Both regulation laws limit a consumer's liability for unauthorized transactions, but the limitations are different both in terms of the amount of the cap and the standards for applying the limitation.
CDCPA provide debit card holders with a number of the important protections available to credit card consumers.
In addition to changing the cap on liability, the CDCPA has shortened the time to re-credit a consumer's account following a disputed debit card transaction.
Currently the electronic funds transfer act provides that the re-crediting must occur within 10 business days after the financial institution receives notice of the dispute.
The CDCPA has shortened that time to seven business days for debit card transactions.
Electronic funds transfer benefits
- Approve payments such as wires and electronic funds transfers
- Obtain real-time foreign exchange rates for cross-currency payment settlements
- Receive mobile notifications on pending approvals allowing business owners and managers to ensure
time-sensitive payments are not missed
- Remotely access real-time account balances and transaction history
Mobile banking for personal clients has grown rapidly in just a few years, and we're expecting mobile banking for business owners to be well received because of the tremendous flexibility it offers.