Wire Transfer - Other Electronic Transfers

Other Electronic Transfers

There are forms of electronic transfer that are distinct from wire transfer. Electronic funds transfer system (EFTS) is one such system. This is the system one uses when one gives one's bank account number and routing information to someone owed money and that party transfers the money from one's account. It is also the system used in some payments made via a bank's online bill payment service. EFTS transfers differ from wire transfers in important legal ways. An EFTS payment is essentially an electronic personal check, whereas a wire transfer is more like an electronic cashier's check.

In the United States, such EFTS transfers are often called "ACH transfers," because they take place through the Automated Clearing House.

One important way ACH transfers differ from wire transfer is that the recipient can initiate it. There are of course restrictions, but this is the way people often set up automatic bill payment with utility companies, for example.