What is an Automatic Funds Transfer?
As one of the most convenient ways to pay bills and receive paychecks, the automatic funds transfer is a financial transaction that ensures funds are sent and received on schedule without the need for human intervention. Here are some examples of how an automatic funds transfer functions, and why the option is such a valuable tool. Transferring funds was once a practice that could only be done manually. Even in the early days of computer technology, a funds transfer had to be initiated by an authorized individual within a financial institution, and also received and posted at the receiving end. While manual funds transfers do still occur, it is not possible to set up scheduled or recurring automatic funds transfers to handle a number of situations. One of the most common applications of automatic funds transfer activity has to do with the household accounts. Today, it is possible to set up monthly standing payments to utility providers, including Internet services and cellular phone pr
Related Questions
- What is the difference between receiving payments with Bank Drafts, and receiving payments with automatic withdrawals (electronic funds transfer - EFT) like my insurance company receives?
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- What is an Automatic Funds Transfer?
