EFT Payment is an easier way of making payment to another account. Since the EFT Payment is made electronically you need not write the conventional checks and deposit them in the banks. You can easily raise eChecks to another account to which you need to pay the amount. Once they receive eChecks, they would request the money from your bank and once cleared the amount is debited from your bank account and credited to the receiver. One of the important merits is the convenience of sending money from your desktop without any hassles. Moreover the charges on the eChecks are less when compared to the credit cards. Hence this could be one of the options for the users.

Any system will also have its own demerits and no wonder the EFT Payment and eChecks too has its own demerits. The amount is debited from your account immediately once the eChecks are cleared. This itself is a drawback for many users as they may not have sufficient funds in their accounts. Payment through credit card is not like that. You have a credit period after which you can pay the amount. Return of eChecks is possible when there are no sufficient funds in the users account. This bouncing of eChecks could be a problem for the business as they would have already dispatched the product to the client. ACH Processing can be used by the business to automate the EFT Payment.

Last 5 posts by Deepak Shrivastava