Finance & Payments

Electronic Funds Transfer (EFT)

Also known as: EFT

Electronic funds transfer (EFT) is the movement of money between bank accounts electronically, without paper cheques or cash.

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.

Frequently asked questions

What is electronic funds transfer (EFT)?
EFT is the electronic movement of money between bank accounts without paper cheques or cash; in procurement it is the standard method for paying suppliers.
What are the benefits of EFT over cheques?
EFT offers faster settlement, lower handling costs, better traceability and reduced fraud risk, and it produces electronic records that reconcile easily with invoices.

Explore related across the knowledge graph

SolutionB2B Procurement & Supplies in CyberjayaB2B supplier for Cyberjaya and Putrajaya's tech and government corridor — office, pantry, cleaning and facilities goods on one managed account with contract pricing, credit terms and free delivery on orders from RM1,000.SolutionB2B Procurement & Supplies in IpohB2B supplier for Ipoh and Kinta Valley businesses — office, pantry, cleaning, MRO, packaging and safety goods on one managed account with contract pricing, credit terms and free delivery on orders from RM1,000 in Perak.SolutionB2B Procurement & Supplies in Johor BahruB2B supplier for Johor Bahru businesses across JB, Iskandar Puteri and Pasir Gudang — office, cleaning, MRO, packaging, safety and facilities goods on one managed account with contract pricing, credit terms and free delivery on orders from RM1,000.ToolEarly Payment Benefit CalculatorSee what getting paid in days instead of months is worth to a supplier.ToolPayment Terms & Working Capital CalculatorSee the working capital freed by extending supplier payment terms.ComparisonFull-Service vs Facilitator Procurement ModelsTwo models of B2B procurement in Malaysia compared: full-service marketplaces with owned fulfilment vs facilitator, software-only platforms — and who owns the outcome.GlossaryAccounts Receivable (AR)Accounts receivable (AR) is the money a business is owed by its customers for goods or services that have been delivered but not yet paid for.GlossaryAdvance PaymentAn advance payment is money paid to a supplier before goods or services are delivered, often to secure an order or fund initial work.GlossaryCash FlowCash flow is the movement of money into and out of a business over a period, and whether it has enough cash on hand to meet its obligations.SolutionB2B Procurement & Supplies in Kuala LumpurOne B2B supplier for Kuala Lumpur businesses — office, pantry, cleaning, MRO, packaging, safety and facilities goods on one managed account with contract pricing, company credit terms and free delivery on orders from RM1,000.SolutionB2B Procurement & Supplies in MelakaB2B supplier for Melaka businesses across Melaka city and Ayer Keroh — office, cleaning, packaging and safety goods on one managed account with contract pricing, company credit terms and reliable scheduled delivery from our own Klang Valley warehouses.SolutionB2B Procurement & Supplies in PenangB2B supplier for Penang businesses across George Town, Bayan Lepas and Seberang Perai — office, cleaning, MRO, packaging, safety and facilities goods on one managed account with contract pricing, credit terms and free delivery on orders from RM1,000.SolutionB2B Procurement & Supplies in SelangorB2B supplier for Selangor businesses across Shah Alam, Klang, Petaling Jaya and Subang — office, cleaning, MRO, packaging, safety and facilities goods on one managed account with contract pricing, credit terms and free delivery on orders from RM1,000.SolutionB2B Trade Financing & Credit Terms in MalaysiaBuy now, pay on terms — Lapasar offers approved Malaysian businesses credit terms on B2B purchases, so procurement runs without cash-flow friction.SolutionBecome a Lapasar VendorSell to enterprise and GLC buyers through Lapasar's managed marketplace, with fulfilment and payment handled for you.

Put procurement theory into practice

Talk to our team about wholesale pricing, credit terms, sourcing support and delivery across Peninsular Malaysia — or explore the marketplace built for Malaysian enterprises.

Prefer to talk to a real person?

Our team replies fast on WhatsApp and email — no forms, no waiting.