Understanding the Different Types of EFT Payments Used by Businesses
Electronic Funds Transfer (EFT) is the digital movement of money between bank accounts. For modern companies, EFT is essential for improving cash flow, enhancing security, and reducing the administrative burden of paper checks. By digitizing finances, businesses can process transactions faster and more reliably. Join us as we look at all of the different types of EFT payments used by businesses. Common Types of EFT Payments There are several ways to move money digitally, each serving a unique purpose. Some examples include: ACH Debit: Allows a business to “pull” funds from a customer’s bank account. This ACH payment processing method is popular for recurring billing, such as gym memberships or utility bills, because it automates collections. ACH Credit: Is the opposite of ACH debit. It pushes funds from the payer to the payee. This is often used for vendor payments because it is cost-effective and easy to track. Wire Transfers: Designed for speed an...