electronic funds transfer

(noun)

the transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems

Related Terms

Examples of electronic funds transfer in the following topics:

  • Cash Controls

    • Prevent the business from having "idle funds"—more cash than is necessary to function.
    • These funds can instead by invested for higher return.
    • Electronic Funds Transfer (EFT): By using services that transfer funds automatically, such as through PayPal, a business can minimize the number of people who have access to its funds.
    • These types of transfers also tend to generate documentation showing when the transaction was made and with whom.

  • Defining Current Liabilities

    • In financial accounting, a liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of future economic benefits.
    • A borrowing of funds from individuals or banks for improving a business or personal income that is payable during a short or long time period.
    • A duty or responsibility to others that entails settlement by future transfer or use of assets, provision of services, or other transaction yielding an economic benefit, at a specified date, on occurrence of a specified event, or on demand.

  • What Is a Receivable?

    • In most business entities, accounts receivable is typically executed by generating an invoice and either mailing or electronically delivering it to the customer; who, in turn, must pay it within an established time frame.
    • The accounts receivable team is in charge of receiving funds on behalf of a company and applying it towards their current pending balances.

  • Factors Affecting the Price of a Bond

    • A bond is a financial security that is created when a person transfers funds to a company or government, with the understanding that at some point in the future the entity issuing the bond will have to repay the amount, plus interest .

  • Valuing Repairs, Maintenance, and Additions

    • Deferred maintenance is the practice of postponing maintenance activities such as repairs on both real property (i.e. infrastructure) and personal property (i.e. machinery) in order to save costs, meet budget-funding levels, or realign available budget monies.
    • Under US GAAP (FAS 157), fair value is the amount at which an asset and its related costs could be bought or sold in a current market transaction between willing parties or transferred to an equivalent party other than in a liquidation sale.

  • Activities to Manage Receivables

    • In most business entities, accounts receivable is typically executed by generating an invoice and either mailing or electronically delivering it to the customer, who, in turn, must pay it within an established time-frame, called credit terms or payment terms.
    • The accounts receivable team is in charge of receiving funds on behalf of a company and applying it towards their current pending balances.

  • Types of Bonds

    • To transfer ownership of registered bonds, the owner endorses the bond and registers it in the new owner's name.Therefore, owners can easily replace lost or stolen registered bonds.
    • Physical delivery of the bond transfers ownership.

  • Characteristics of Bonds

    • Ownership of bonds are often negotiable and transferable to secondary markets.
    • Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure .