Electronic Funds Transfer (EFT)

EFT covers the electronic transfer of funds from one account to another, and in B2B procurement it is the standard way to pay suppliers. It includes bank transfers, direct credits and interbank payment systems, offering faster settlement, lower handling costs and better traceability than cheques. Payment details are captured once and reused for each payment run.

For accounts payable, EFT reduces fraud risk associated with cheques, speeds up settlement and produces electronic records that reconcile easily with invoices and remittance advices. Accurate supplier bank details and strong internal controls are essential, since erroneous or fraudulent account changes are a common source of payment loss.