What are EFT forms?


Quick Answer

Before an electronic fund transfer can occur, the consumer is required to complete an EFT form to provide pertinent information and authorize the transaction, as stated in the Electronic Fund Transfer Act. An electronic fund transfer uses electronic technology to transfer money, notes the Federal Trade Commission.

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Full Answer

EFTs are most commonly used in ATM and debit card transactions, which allow consumers to access funds without writing checks, according to the Federal Trade Commission. The pre-authorization of withdrawals for automatic payment of expenses, such as recurring bills, is another frequently used EFT service. The FTC advises extra caution when using these services. Consumers should be mindful to avoid account overdrafts and must report lost or stolen cards immediately.

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