Electronic Fund Transfer (ETF) as “The transfer of funds, as from one account to another or from buyer to seller, by telephone or computer. The use of EFT results in the instantaneous movement of money. The additional time that the funds are available to earn income can more than offset the fees charged by institutions for this service. Also called wire transfer.” – Free Dictionary by Farlex
ETF has made the movement of Fund from one bank customer to another, intra and interbank a lot more convenient and as a result facilitated business transactions. Customers can from the comfort of their homes or offices make payment for goods and services directly from their bank account without the intervention of bank personnel.
Here are 6 electronic fund transfer options available to bank customers.
1. USSD Banking
USSD Banking is fast becoming the most used banking service in Nigeria. It involves the use of shortcodes to access your account and perform banking transactions. USSD is a GSM communication technology that is used to send messages between a mobile phone and an application in a network system without the use of internet connection. USSD Banking can be used to transfer money from one account to another in the same bank or to other bank accounts.
2. Mobile Banking/Internet Banking
Mobile or Internet Banking is the use of banking application or computer to access your bank account and perform almost all major banking services including fund transfers without the involvement of banking officers. Mobile and internet banking, unlike USSD Banking, will require the internet connection and it is particularly popular because of its convenience, security, and control.
3. ATM Transfer
One of the many functions of ATM apart from cash deposit and withdrawals is electronics fund transfer. It can be used for both intra and interbank transfer and like mobile banking, it is convenient and secure.
4. Transfer Through Bank Agent
Banks are increasingly using this financial inclusion strategy of the CBN to take banking services to a remote environment where there are no existing banks. Bank agents allow existing customer of all banks to transfer money from the agent’s bank account using USSD or mobile banking while the agent gets value for such transfers with charges via his POS terminal using the bank customers ATM card.
5. Bank transfer
Bank transfers are still the most popular means of fund transfer options among Nigerians. It involves walking into your bank and completing your bank’s details and the detail of the beneficiary including the beneficiary’s banks and amount on a form and request your bank to make the transfer. While some banks will affect the transfer immediately other may use electronic transfer platforms that will take 24 hours to effect transfers.
6. Standing Order
Standing order involves giving your bank a formal instruction to debit your account at regular intervals, usually every month and credit another bank customer’s with the same amount. Standing orders are mostly used by entrepreneurs to pay salaries and allowances of staff. It is also a very effective way to save money for a salary earner. All you need do is to request your bank to effect a standing order on your salary account and credit your investment of savings account where you will not access the fund every month.
It is important to note however that transfer limit may vary from one bank to another.