Automated Fund Transfer / AFT / EFT
Automated Fund Transfer (AFT), also known as Electronic Funds Transfer (EFT), involves moving money from one bank account to another electronically. In Canada, AFT is used for recurring payments like payroll, while EFT is a global term covering a broad range of digital transfers – including ACH in the US, SEPA Credit in Europe, and other regional schemes.
Applications
Payroll processing:
AFT / EFT makes salary disbursements simple and timely.
Supplier payments:
Supports vendor settlements and direct deposits.
Advantages
- Operational efficiency: Faster, more streamlined payment processing than manual methods.
- Digitisation: Reduces reliance on paper cheques and legacy infrastructure.
Challenges
- Variable settlement windows: Timing can differ by scheme and provider.
- Pre-setup complexity: Often requires initial authorisation and account configuration.
