Resources > Glossary > Electric Funds Transfer

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Common Terms 1   Common Terms 2

Electric Funds Transfer

Function: noun

Definition 1:
EFT allows account holders to transfer funds from an account electronically. This method of transfer is highly secure, efficient, fast, and easy to transact. One advantage of electronic funds transfer is that it saves all parties labor expenses from writing checks, mailing them, etc. It also guards against the risk of payments getting lost of delayed in the mail. The biggest advantage is that the borrower doesn't have to worry about forgetting to make their payment if they get sick or go on vacation. A surprising amount of borrowers have a great credit history, but missed a payment when they went on vacation for a month out of the country.