The best EFT payment service in South Africa

EFT payment service

Electronic Funds Transfer (EFT) is a transaction that takes place on a digital network, whether in the same bank account or different financial institutions. It is getting increasing trend and you must need to implement the best EFT payment with the sturdy mobile payment solution for your business. 

How does EFT payment work?

EFT includes direct-debit transactions, wire transfers, direct deposits, ATM withdrawals, and online bill payment services. Transactions in this money transfer solutions are processed through the automation Clearing House (ACH) Network, a secure transfer system that connects all banks, credit unions and other financial institutions.

Why is EFT payment service necessary? 

Increased use of EFT for online bill payment, purchase and payroll processes leads to a paper-free banking system, where a large number of invoices and payments are on the digital network. EFT, as the best digital payment solution plays a significant role in this future, guaranteeing smooth transfer of money to institutions or banking networks with fast, secure transactions.

EFT transactions, also known as online transactions or pin-debit transactions, provide an alternative to signature debit transactions, which are done through one of the major credit card processing systems, such as Visa. MasterCard or Discover, and can cost up to 3% of the total purchase price. EFT processing, on the other hand, takes only 1% for debit card transactions.

Electronic fund transfer examples

Generally, it refers to moving funds between accounts electronically. This can be through credit card, debit card, wire transfer, direct debit, or other means.

a. Wire transfer

It refers to a transaction that is initiated by an account holder to transfer money from one account to the organization. This is to align directly with the account holder’s financial institution. And after customizing, the account holder presents precise account information for which the transfer will take place. Wire transfers are not made using Blackbaud products.

b. Direct debit / ACH transfer

It is a type of EFT / Electronic Funds Transfer which is compared to “Electronic Check”. The information used is a 9-digit street number and bank account number.

c. Credit card / check card / charge card

It is another form of EFT / Electronic Funds Transfer that uses a network of banks/institutions to transfer funds between accounts. The information used is the specific account number for the network (the “credit card number”).

  • A credit card refers to an account where a financial institution extends one type of credit to its account holder – a kind of loan.
  • Check cards are the same as credit cards unless the account is usually linked to a checking account or savings account, and the limit that can be spent is the amount of money in the report.
  • The charge card is the same as a credit card, the main difference being that the account must be paid in full for the duration of each statement.

d. Personal check or business check

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This type of payment usually starts with a paper check. However, the information on the check initiates the electronic transfer of funds. Then it follows the regulations of debit card fund transfers.

Other modes of EFT

There are several ways to transfer money from one bank account to another. With the increasing technology, mobile payment solution has become the easiest way to transfer money from one bank to another without any hassle. Here are three main ways to transfer money.

  1. NEFT (National Electronic Funds Transfer)

National Electronic Funds Transfer, or NEFT, is the easiest and preferred method of transferring money from one bank to another. For any NEFT transaction, you only need two important information – first, the account number and second, the IFSC code of the destination account. In NEFT, there is no cap on transferrable money. However, individual banks may set limits.

Steps for NEFT money transfer:

Step 1: Go to the Funds transfer tab and select ‘Transfer to another bank’ (NEFT).

Step 2: Select the Paying Account and enter the relevant details

Step 3: Accept the Terms and Conditions

Step 4: Double-check the details, if all else complete the process

  1. RTGS (Real Time Gross Settlement)

Real-time gross settlement or RTGS is almost the same as NEFT, but the minimum payment is due and how it changes to the destination account. If you want to make more than two transfers, you can use them. There is no upper cap on the zodiac. RTGS money transfer takes place on a real-time basis. The person who has the money transferred has 30 minutes to deposit the bank in his account.

Steps to transfer RTGS funds:

Step 1: Go to the Funds Transfer tab and select ‘Transfer to Another Bank’ (RTGS).

Step 2: Select the Paying Account and enter the relevant details

Step 3: Accept the Terms and Conditions

Step 4: Review the details again, if all is well, confirm and complete the process.

  1. IMPS (Immediate Payment Service)
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Imports instant payment service or instant money transfer service and can be used at any time. Imps can only be defined as NEFT + RTGS. To avoid fraud complaints, the cap on the transaction limit is too low. For IMPS transfer, all you need to know is the destination account holder and his mobile number’s IMPS ID (MMID).

Steps to Transfer IMPS Money:

Step 1: Use your customer ID and password in net banking / mobile banking

Step 2: Go to the Funds Transfer tab (Another bank account)

Step 3: Select the Debit / Credit Account, IMPS and Transfer Mode as beneficiary account

Step 4: Enter the transfer amount and click Submit

Step 5: Click on the Confirm button

Step 6: Receive all information and allow transactions using OTP (one-time password) received at your registered mobile number

Step 7: And finally confirm by clicking on the submit button.

With IMPS, you can transfer money 24/7, but RTGS and NEFT can only be done on weekdays, working hours + Saturdays within a few hours. Apart from NEFT, RTGS and IMPS, you can transfer and check your money through UPI.

  1. UPI (Unified Payment Interface):

The Unified Payments interface is a real-time payment system that allows transactions through any smartphone using a VPA (virtual payment address). No bank account details are required to transfer money through UPI. Just a mobile number or name is sufficient, and transactions can be done 24/7. UPI-enabled applications allow the transfer of up to 1 lakh rupees. This form of EFT is emerging as the most popular peer-to-peer payment app

Final words

You need a robust strategy to implement EFT payment modules and methods in your ecommerce business. Hiring the best wallet app development company could help to overcome rising competition in your industry. 

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