EFT, or electronic funds transfer, is an ideal way to transfer funds regardless of the location of the provider and the recipient.
Where EFT comes with great advantage is that it is very swift; the transfer of money is not delayed.
Another factor that is important and worth mentioning is that EFT has no risk factor in holding the transactional function.
EFT finds its use in representing the way a corporate business, multinational firm orlarge industry can receive direct deposits of all payments to their respective company bank accounts.
Nonetheless, EFTPOS is another specialization in fund transfer technology.
EFTPOS stands for Electronic Funds Transfer Point of Sale.
Electronic funds transfer point of sale is a device through which sales transactions get debited directly to the customers' bank account right at the point of time of sale.
The functioning of electronic funds transfer point of sale is usually done through the use of a debit card, a card used for automatic teller machines, and other cards.
Where electronic funds transfer point of sale comes in handy is when it allows the customer to withdraw cash wherever and whenever necessary, and where the customer has the full right to withdraw cash money along with their purchase of goods and any other products.
EFTPOS is sometimes also called POS Terminal or Payment Terminal.
Do not confuse these with the traditional meaning of the term Point of Sale, which refers more to an actual physical establishment in which a transaction may take place.
In general, the card of the customer or the card holder is swiped with a card reader or put into a chip reader.
The merchant then enters the amount of the transaction before the customer enters their account number and PIN.