Electronic Funds Transfer Essay Example
Electronic Funds Transfer Essay Example

Electronic Funds Transfer Essay Example

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  • Pages: 5 (1341 words)
  • Published: August 16, 2017
  • Type: Research Paper
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Living in a digitally controlled world now, it is not difficult to acknowledge that nearly everything is primarily controlled by technology. This is the era where practically everything occurs with just one click. Apparently.

Everything in society now happens almost instantly, thanks to the presence of online connections facilitated by the internet. This has also significantly contributed to advancements in online banking systems. Additionally, the advent of online trading procedures has further accelerated these developments.

The advancement of fund transportation processes has demanded several improvements in terms of making money transfers as fast as possible. To meet these demands, the need for express money transfers has increased, considering the frequent money exchanges occurring worldwide.

The traditional method of money transportation, which includes paper clips and multiple complex processes for claiming transferred funds, is slowly being replaced in society. This outdated syste


m cannot fulfill the need for faster money transportation. However, Electronic Fund Transfers (EFTs) provide the most efficient way to send money from any location worldwide to different destinations. Additionally,

Moreover, this specific approach to monetary transactions has also bolstered the safety of money transport. Gaining a deeper understanding of this method requires grasping the key aspects of its main advancements. Banks have primarily taken charge in implementing EFT's as they aim to improve their customer services.

Investors and economic partisans have shown increased concern in improving fund transportation procedures globally. This has given bankers the opportunity to develop a system for transferring money between individuals and companies. Initially, this system focused on recognition transactions, the use of cards in financial transactions, and other basic procedures related to monetary transfers.

However, when the bankers discovered the potential of utilizing the advantages

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of online connections in this specific process, they pushed forward with the integration of online internet connections into the procedures of completing bank to bank financial transactions. Now, through the internet alone, investors.

Business communities and even regular bank depositors now have the ability to transfer funds online. This process also encompasses various other financial transactions, including:

  • Sale: when the cardholder pays for goods or services.
  • Refund: when a merchant returns a previous payment made by a cardholder.
  • Withdrawal: the cardholder takes out funds from their account, for example, at an ATM. The term Cash Advance can also be used, typically when the funds are provided by a merchant instead of an ATM. Deposit: when a cardholder adds funds to their own account (usually at an ATM).
  • Cashback: when a cardholder withdraws funds from their own account while making a purchase. • Inter-account transfer: transferring funds between linked accounts owned by the same cardholder.
  • Payment: transferring funds to a third-party account.
  • Inquiry: a transaction without financial impact, such as checking the balance or available funds.

Linked histories enquiry or petition for a statement of recent minutes on the history.

Administrative: This covers various non-financial minutes, including PIN alteration. (Beginning: Wikipedia. http://en.

According to Wikipedia.org/wiki/Electronic_funds_transfer, these transactions involve communication between the client and the company, the company and the bank, and finally, the bank to bank to complete the transportation of funds. Numerous studies have revealed that a significant number of individuals recognize

the advantages of this pecuniary transaction process. (Davies)

1989. 34). The system of fund transportation requires many communication processes between multiple parties. This is done to confirm the identity of the senders and receivers for security purposes. The advantages of EFT Considering the perspective of the senders of the financial funds being transferred, it cannot be denied that there are various benefits that highlight the entire EFT process, making it more convenient for investors.

Partisans and local depositors are recommended to take advantage of certain benefits. These benefits include the following: (a) Speed - Fund transfers assisted through electronic devices such as online bank connections and other transferring agents. The transfer processing time is at least two to three days for domestic transactions, while it takes four to five working days for international transactions. Either way,

The transportation process in the case of EFT is significantly faster compared to other conventional transportation processes. Additionally, due to the absence of physical money being transferred, there are fewer occurrences of funds being lost. All transactions are tracked through web systems.

Transmitters can be confident that what they send will be received by the intended recipients. Additionally, the speed of transactions reduces the number of parties involved, resulting in lower fees that are more acceptable to the senders.

( vitamin D ) The transaction order details for transporting money have been kept intact to ensure everything stays on track. This also means that the transaction details are constantly updated for the individuals sending money, helping them keep track of their finances. ( vitamin E ) The tracking details of the systems greatly assist clients in effectively managing their money. Through this process, clients

are able to control their usage of funds with assistance. With these mentioned benefits, it is evident that EFT procedures enhance the capabilities of both senders and recipients to continuously and accurately monitor and control their finances.

Banks serve their clients well by integrating bank systems, electronic transactions, and online connections. This is why many businesses choose to pay their investors and employees through Electronic Funds Transfer (EFT) processes. They provide employees with bank cards that allow them to withdraw their payments through ATM automation.

Similarly, investors are also entitled to receive their portion of the company's profits. Often, they furnish their account details to the financial decision makers of the business who subsequently transfer funds into their accounts at specified intervals. Roland E. Brandel's book "The Law of Electronic Fund Transfer Systems" (2005) highlights that there exist governing laws for such transactions.

15). "The increasing impact of technological advancements on the economic advancements of society is significantly changing the perception of banking systems. It is through the evolution of these systems that individuals now consider banks as one of the most efficient sectors in society. Nonetheless, due to various security measures, both the government and banking regulations have implemented guidelines to ensure safer access to Electronic Funds Transfer (EFT) systems."

It is undeniable that some computer hackers can access the identity of others and commit fraudulent acts, including stealing funds from their online accounts, through EFTs. Due to this reason, strict security measures have been implemented to track every aspect of fund transfers.

According to Tan Beng Chye Dennis, the U.S. Government oversees compliance with EFT through Regulation E of the Federal Reserve Board. Regulation E enforces the

Electronic Funds Transfer Act (EFTA) and regulates financial transactions involving electronic payment services.

This text focuses on the disclosure of information, consumer responsibility, declaring mistakes, and keeping records.

Banks and online financial companies take great measures to protect the funds of individuals who use electronic terminals. The security of money transferred through electronic processes is a top priority for these institutions. Close scrutiny of the electronic funds transfer (EFT) system reveals strict guidelines for those involved in transactions, ensuring the safety and efficiency of the service.

In conclusion, modern business processes are becoming more advanced and technology-driven to provide exceptional services to customers and employees. The implementation of Electronic Fund Transfer (EFT) systems has greatly simplified financial transactions for multinational organizations, leading to streamlined bookkeeping procedures and reduced paper usage. By integrating new technologies into their operations, companies have made it easier to fulfill their crucial role of providing funding to society.

Furthermore, the improved security of fund transportation processes through electronic applications and the integration of jurisprudence within the system hold much potential for more efficient services provided by banks in coordination with online financial assistance companies. Indeed, technology has not only enhanced banks' capabilities in transferring funds, but it has also simplified business transactions and guaranteed secure money transfers for clients.

The future outlook for more complex and comprehensive fund transferring processes appears to be logical. Banking systems are constantly changing and must improve their services to better serve their clients. Research being conducted on this matter is expected to yield better results for the business industries.

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