Electronic currency also known as electronic money which is which is exchanged only electronically. In recent years, the percentage of transactions done electronically is growing dramatically. One of the factors that causing it growing dramatically is electronic funds transfer (EFT) system systems, which move funds in and out of accounts using electronic impulses. EFT systems range from the now-familiar automated teller machines (ATM) to “virtual banking” on the Internet. Click here for more.

The common form of the EFT is automated teller machine (ATM), point-of-sale (POS) system, and direct payment.

1.Automated teller machine (ATM)
The most common form of EFT technology is the ATM, which enables us to make deposits, obtain cash, and transfer funds between accounts. Many ATMs also can be used to pay bills and loans and complete other transactions. ATMs are activated by inserting a special access card into a machine. A consumer must enter a personal identification number (PIN) before any account or transaction information appears on the screen. When the transaction is completed, the consumer receives a receipt showing the date, the dollar amount and the type of transaction.

2.Point of sales (POS)
Consumers use POS as a credit card or debit card to transfer funds immediately from their account to a merchant’s account. To use POS online, a consumer simply passes a debit card through the terminal to transfer the funds. It is usually also necessary ro punch in the proper PIN. The consumer receives a printed receipt after the transaction is completed. Some POS transactions are “offline.” With an offline transaction, the consumer does not usually have to enter a PIN number, and the sales charge is submitted by the retailer along with charge slips. The amount of the transaction is deducted by the consumer’s bank when the sales slip is received and appears on the consumer’s bank statement rather than as a charge on a credit card statement. Offline POS transactions may also require the customer’s signature on a slip that resembles a charge slip.

3.Direct Deposit
Another form of electronic banking is direct deposit and preauthorized payments or electronic bill payment. Direct deposits are automated credits or increases to the consumer’s account. Preauthorized bill payments are automated debits or reductions. Unlike ATM and POS transactions, no access card is needed. Direct deposits are increasingly used by employers, government agencies and other organizations that make regular payments, such as wages and dividends, to individuals.