PAYMENT METHODS & RECONCILIATION

Electronic Funds Transfer (EFT)

Also called

Abbreviation
EFT
Reading time
3 minutes

Electronic funds transfer is a broad term for moving money electronically. Different payment methods, such as ACH and wire transfers, have their own processing, authorization and settlement arrangements.

ELECTRONIC FUNDS TRANSFER IN PRACTICE

  1. Name the methodSpecify the payment route and agreed terms.
  2. Control authorizationVerify instructions through approved procedures.
  3. Reconcile the resultMatch payment evidence and invoices.

Use the agreed units, actual records and approved procedures for your operation.

A WORKED EXAMPLE

Advice received. Funds not yet reconciled.

A customer emails remittance advice for several invoices. The accounts team matches references but confirms the actual payment status through its financial process before marking them settled. The advice describes the intended allocation; it is not itself the money transfer.

WHAT THIS MEANS FOR YOUR QUOTE

Agree the requirement before comparing quotes

Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.

A LITTLE MORE CONTEXT

Questions about Electronic Funds Transfer

Is EFT always ACH?

No. EFT is broader.

Is EDI a payment network?

No. It exchanges information.

Does remittance advice prove settlement?

No. Reconcile actual payment evidence.

Source & example notes

Nacha: EFT, ACH and EDI are different.

Sources provide background on the linked topic. Product documentation describes a particular implementation; confirm the rules, contract and procedures that apply to your operation.

Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 22 October 2026.

Last updated: · 3PL Hub

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