The ABCs of EFTs
Electronic funds transfer, or EFT for short, is a broad term that describes the process of electronically moving funds between accounts over a network. There are several types of EFT transactions, including ACH transactions (e-checks), wire transfers, direct deposits, direct debits, ATM withdrawals, and online bill payments made with credit or debit cards. An EFT can be a scheduled transaction—such as when paying a bill with a credit card—or a real-time transaction, such as an in-store purchase made with a debit card. Because no paper checks are involved, EFT transactions are a fast and convenient way to make purchases and process payments.
Are you a merchant? Here are some things to consider as you decide whether to accept B2B or B2C EFT transactions at your business.
- Lower Cost
EFT transactions can be a lot less expensive to process than credit cards. Fees for accepting EFT transactions average about 1% compared to approximately 3% for accepting credit cards.
- Speedy Access to Funds
Funds are usually transferred in as little as 24 hours. Many traditional credit card funding options can take longer than this.
- Saves Time
Accepting EFT payments means you don’t have to spend time handling paper checks and making bank deposits at the end of the day.
- Flexible, Customer-Friendly Payment Options
Setting up recurring payments and deposits is quick and easy. And your customers will enjoy the convenience of making EFT payments (especially when part of a recurring payments plan), as the customer only has to provide their bank account information once and future payments can be fully automated!.
Accepting EFT Payments With Cardknox: The Easy Choice
Cardknox is proud to support robust ACH processing solutions, so you can manage bill pay with ease. To learn more about Cardknox support for ACH, click here.
Integrating With Cardknox Is a Snap!
Are you a developer? With Cardknox, it’s easy to equip your Merchants with fully integrated ACH processing that can be accessed through the merchant’s payment management portal or through third-party software programs. Plus, Cardknox’s ACH processing solutions can be seamlessly integrated with a wide range of POS systems so your merchants can reconcile accounts with ease.