G10 IG -Electronic Funds Transfer

What is Electronic Funds Transfer (EFT)?

• EFT is a method of transferring money electronically between bank accounts.

• EFT refers to a method of sending letters between banks.

• EFT is a type of physical cash transfer.

• EFT is a service for exchanging goods without money.

List three types of transactions that fall under EFT.

• Cash Transactions

• Credit Card Payments

• Direct Deposit, Electronic Bill Payment, ATM Transactions

• Wire Transfers

How do credit card transactions work in EFT?

• Credit card transactions in EFT involve authorization, processing, and settlement of funds between the cardholder, merchant, payment processor, card network, and issuing bank.

• EFT transactions do not involve any banks or payment processors.

• Credit card transactions only require the cardholder's approval.

• Funds are transferred directly from the merchant to the cardholder.

What are the main features of internet banking?

• Mobile app features

• Main features of internet banking include account management, fund transfers, bill payments, loan applications, and access to financial statements.

• In-person banking services

• ATM withdrawal limits

Explain the role of cheques in Electronic Funds Transfer.

• Cheques are only used for physical transactions.

• Cheques facilitate the electronic processing of payments in Electronic Funds Transfer systems.

• Cheques are a form of cryptocurrency in Electronic Funds Transfer.

• Cheques eliminate the need for bank accounts in Electronic Funds Transfer.

What are the advantages of using EFT for transactions?

• Advantages of using EFT include speed, security, convenience, and cost-effectiveness.

• EFT is only available for international transactions.

• EFT transactions are always free of charge.

• EFT requires physical presence at a bank branch.

Identify some disadvantages of Electronic Funds Transfer.

• It guarantees instant transaction completion every time.

• It eliminates the need for any form of identification.

• Electronic Funds Transfer is always free of charge.

• Disadvantages of Electronic Funds Transfer include security risks, reliance on technology, transaction errors, fees, and potential delays.

How does EFT improve the efficiency of banking?

• EFT improves banking efficiency by enabling quick, secure, and cost-effective electronic transactions.

• EFT slows down transaction processing times.

• EFT increases the number of physical bank visits required.

• EFT eliminates the need for any form of security in transactions.

In what ways can EFT enhance security for transactions?

• EFT enhances security through encryption, authentication, transaction monitoring, and regulatory compliance.

• EFT enhances security by increasing transaction fees.

• EFT relies solely on physical signatures for security.

• EFT does not require any regulatory compliance for transactions.

Discuss how EFT has changed the way people manage their finances.

• EFT has reduced the security of online transactions.

• EFT has made financial management more convenient, secure, and efficient.

• EFT has increased the number of physical bank visits required.

• EFT has made financial management more complicated and time-consuming.