Last editedOct 20222 min read
Whether you need to send or receive payments, it’s more convenient than ever to transfer funds electronically. Electronic payments offer a speedy and secure alternative to old-fashioned forms of payment like cash and checks. In this guide, we’ll cover the EFT payment meaning as well as how to track an EFT payment, so that you know when your funds have been received.
Although EFT payments are securely encrypted, each transaction is assigned a unique tracing number which makes them easy to track. Most banks include end-to-end tracking as part of their service; but be sure to confirm this before you sign up for any account.
The best way to check on the status of an EFT payment is by using your business’s online banking service. You can log in to your business account and select the “Electronic Funds Transfer (EFT)” option or equivalent, reviewing the EFT’s status.
There are numerous payment solutions out there that help you process and track EFT payments. For example, GoCardless offers an ACH debit solution enabling businesses to collect payments directly from customers’ bank accounts. It’s easy to set up and cost effective, useful for both recurring and one-off payments. You can eliminate late payments and take control over your incoming EFT payments, all from a central dashboard.
Why should you track EFT payments?
They can be processed quickly, so why is it important to track your EFT payments in the first place? Whether you’re paying an important bill or sending payment to a supplier for raw materials, you want to make sure your money is sent in good time. Tracking your payments makes sure you’re on track for delivery, and if there are any delays you have time to fix these issues. This in turn helps with cash flow.
EFT payment meaning: What is EFT payment?
First things first – what is EFT payment and how does it work? EFT stands for electronic fund transfer, describing the process of moving money electronically from one bank account to another. These might be two accounts held at the same financial institution, or accounts held at separate banks. EFT payments are fully encrypted, making them fast, secure, and efficient.
What’s important to understand is that there are multiple types of EFT payments, which impacts how you can best track them. This includes wire transfers, which are used to send larger sums of money, as well as electronic checks, direct deposits, and other types of ACH payments.
How long does an EFT payment take?
The timing of an EFT payment will depend on whether it’s a larger-scale wire transfer or a standard ACH payment. In many cases, EFT payments are settled within a business day, but they can take three to five days or even longer in the case of high-value international transactions. For timescales, it’s best to consult with your bank at the time of making the transfer.
How to set up EFT payments
What happens when you want to set up a payment? The first step when determining how to set up EFT payments is to understand how they’re processed. EFT payments move from one bank account to another using the United States Automated Clearing House, or ACH, network. This is the network that connects all U.S. banks, credit unions, and other financial institutions. EFT payments are processed in batches throughout the day, which also impacts settlement times and tracing.
To get started with setting up an EFT payment, you’ll need to provide key details to the bank:
The recipient’s bank name
The recipient’s account number
The recipient’s routing number
The amount of funds you wish to send
We can help
GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.