What is the Difference Between ACH & EFT?
Answer by Jim Bedsole, BOL Guru Guru Bio Question: I am going to ask a really stupid question. What is the difference between ACH and EFT? I am very new to the banking industry and these two topics confuse me.
Answer: ACH is a subset of EFT. EFT is an Electronic Funds Transfer. This can take many forms. It can be a debit card transaction, an ATM withdrawal, a telephone banking transfer, an online banking bill payment transaction, or an ACH credit or debit, to name a few.
ACH stands for Automated Clearing House. It is a specific type of electronic transfer (can be debits or credits) that process under rules set by and through NACHA (National Association of Automated Clearing Houses) and state or regional associations. Some examples of ACH transactions include direct deposit of payroll or government benefits and automatic loan payment drafts.
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.
Print Friendly!
Email This Article!
Discuss NOW!
