Electronic Funds Transfer

Computer-based electronic funds transfer (EFT) has revolutionized the way banks and consumers transact financially. To avoid the security risk of handling millions in cash, financial institutions prefer electronic transactions; and depositors are following suit. Television commercials extolling the virtues of a society which operates solely on credit cards versus cash may be fictional, but not far from reality. As e-commerce and e-banking increase, consumers and corporations are finding that making purchases, paying bills, and making installment payments is much easier and more secure when transacted electronically. From electronic money transfer (EMT) and online banking, to wire transfers and cash advances, savvy spenders have moved away from paper to digital dollars; and it just makes plain sense.

Dealing in cash carries a myriad of problems, security being the foremost concern. Handling large sums of paper money can be dangerous; and thieves are always lurking to relieve the owners of it. Once it's stolen, cash is extremely difficult if not impossible to recover. To alleviate the possibility of stolen paper money or the difficulty in obtaining letters of credit, the London Credit Exchange Company first issued traveler's checks in 1772 to wealthy nobles. The average Joe began using them consistently in the twentieth century. Modern day traveler's checks, purchased at face value at a depositor's local bank, can be used at home and abroad and easily traced and recovered in case of theft or loss. In the 1950s, banks began issuing credit cards to qualifying depositors; and electronic money transfer began to take center stage. Today, card-based electronic funds transfer has become the norm, not only in the world of banking, but also in the lives of the average consumer. Just as electronically transferring funds is a more excellent way of transacting business, so was Jesus Christ sacrificed to afford mankind a more excellent way of obtaining eternal redemption. "For if the blood of bulls and of goats, and the ashes of an heifer sprinkling the unclean, sanctifieth to the purifying of the flesh: How much more shall the blood of Christ, who through the eternal Spirit offered Himself without spot to God, purge your conscience from dead works to serve the living God?" (Hebrews 9:13-14)

Individuals routinely use plastic cash instead of paper to pay for everything from toothpaste to technical college. Online, mail order, and telemarketing purchases are easy using e-money; with no fear of losing funds without recourse. Dissatisfied customers can have monies refunded via electronic money transfer and avoid the hassle of waiting weeks for merchants to make good on damaged or inferior products. Businesses have gone paperless with direct deposit employee payroll payments; and monies go directly into employees' checking accounts. Most cash-free consumers prefer making online electronic bill payments or direct debits, especially for big ticket installment accounts, such as automobile, furniture, appliance, education, or home loans.

Electronic funds transfer is not just for bank account holders. Immigrants working in the United States routinely take advantage of electronic money transfer services located in shopping centers to send funds back home. Wire transfers are much safer and quicker than sending cash or checks through the mail which, in some parts of the globe, may never reach its destination. A safe and secure system of legally transporting millions of dollars across state and international boundaries, EMT enables ordinary individuals to bypass the normal red tape associated with handling large sums of cash. Money sent electronically can usually be picked up at a destination city within minutes of wiring. Any consumer over the age of 18 can utilize EFT using several available services which provide wire transfers for a small fee, much less than those offered through domestic and foreign banking networks.

Bank cardholders can complete almost any financial transaction seamlessly via electronic funds transfer. In addition to credit card payments for products and services, cardholders may receive refunds for overpayments or returns transacted with retail merchants or financial institutions. Cardholders may also use EFTs for withdrawing funds at an ATM (automatic teller machine), or to get a cash advance against a major credit card. Deposits to cardholder accounts can be transacted electronically, moving money from card balances to an existing account. Some depositors choose to use EFTs for cashbacks at the point of sale to access a little spending money when making a purchase at the checkout terminal.

Another advantage of using electronic funds transfer is the ease with which accounts can be managed. Instead of trying to balance a regular checking account or keep track of expenditures with pen and paper, smart cardholders can simply make inquiries at an ATM machine using a PIN and plastic. Computer-generated balance sheets accessed online include available funds, a statement of each transaction, card issuer fees, administrative costs, and information on existing linked accounts, such as checking, savings and money markets. One advantage of using EFT inquiries is that there are no embarrassing moments at the cash register; 24/7 access to account balances keeps cardholders abreast of potential overdrafts.

Consumers who want to get in on the electronics money transfer band wagon can apply for a secured or unsecured credit card and begin using electronic money transfer almost immediately. A secured card is backed by a cardholder's bank deposits and limited to available funds on hand. Unsecured cards are limited by the issuer's confidence in the cardholder's ability to repay funds on loan through the issuing bank or company. Both cards are linked to a special savings account, and funds can be accessed, transferred, deposited, or withdrawn electronically. In addition to the convenience of using plastic cash for paying for everything from dinner and dancing to orthodontics and oboes, today's consumer is simply attuned to Internet dynamics. Anyone over the age of thirty may have a problem maneuvering in cyberspace, but youngsters cut their eye teeth on technology. Navigating through a global economy is just a natural progression towards a more excellent way to obtain goods and services.

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