EFT Payment: Definition, Types, and Examples (2026)

An electronic funds transfer (EFT) moves money electronically. Cash and personal checks are convenient for local, in-person transactions, but they’re less common when paying vendors or collecting payment for an online order.

Checks accounted for 26% of B2B (business to business) payments in the US and Canada in 2025, according to the Association for Financial Professionals (AFP). That’s down from 81% overall in 2004.

Learn how EFT payments work, which types businesses use, and how their speed and costs compare.

What is an EFT payment?

Electronic funds transfer (EFT) payment is a catch-all term for electronic payments, such as automated clearing house (ACH) payments, debit and credit card purchases, and wire transfers. EFT is a category, not a single payment network. Every payment method has its own rules and processing times.

EFTs also include ATM withdrawals, so they aren’t limited to transfers between bank accounts. For online sellers, EFTs let customers pay at checkout. Businesses also use EFTs to receive payouts from their payment processor.

Transfer limits depend on the payment method and your bank. Nacha, the organization that manages US ACH payments, caps same-day ACH at $1 million per payment and will increase the limit to $10 million on Sept. 17, 2027. Banks can set lower limits.

Benefits of EFT payments can depend on the type you use:

• Reach. You can pay overseas suppliers through international wire transfers.
• Speed. Eligible same day ACH payments arrive within the same business day, subject to bank cutoff times.
• Cost. Electronic payments eliminate check printing and postage costs. Transaction fees vary by provider and payment method.

How do EFT payments work?

Here’s how EFT payments work in the US. The process varies by payment method. This is an example of a retailer using an ACH credit to pay a supplier’s $2,000 invoice:

1. Authorize the payment. The retailer enters the supplier’s account and routing numbers in its business banking portal, then approves the amount and payment date.
2. Submit the instructions. The retailer’s bank sends the payment data to an ACH operator.
3. Route the payment. The operator sorts the instructions and sends them to the supplier’s bank, following the ACH payment process.
4. Settle the funds. Money moves between the banks, and the supplier’s bank credits its account on the settlement date.

The Electronic Fund Transfer Act (EFTA), implemented through Regulation E, gives consumers error-resolution rights and limits liability for unauthorized transfers. These protections generally apply to personal accounts, not business accounts. Most wire transfers are excluded.

EFT vs. ACH vs. wire transfer: what’s the difference?

EFT is the general category. ACH payments and wire transfers are two types of EFT, each using different networks.

Bank cutoff times and weekends impact how long an ACH transfer takes. Network settlement and merchant confirmation are different stages.

For eligible B2B orders, Shopify Payments ACH Direct Debit takes up to four business days to confirm success or failure. The order’s payment status stays Pending while it processes. After settlement, funds follow your payout schedule.

Types of EFT payments

Several EFT types use the same network. Direct deposits and electronic checks, for example, usually travel through ACH in the US. Here are examples of EFT payment types:

• ACH payments. ACH payments move money between bank accounts through the Automated Clearing House network. A retailer can use an ACH transfer to pay a packaging supplier. The network processed 35.2 billion payments in 2025, says Nacha.
• Direct deposit and direct debit. Direct deposits electronically credit a recipient’s account, and direct debits collect authorized payments from a payer’s account. An employer uses direct deposit to pay wages, for example, while a gym uses direct debit to collect recurring payments for membership fees.
• Credit and debit cards. Card payments are electronic transactions funded by a credit line or money in a linked bank account. A customer buying shoes online can charge the purchase to a credit card and repay the card issuer later. A debit card purchase draws from their bank balance.
• Wire transfers. Wire transfers move money electronically between banks through wire payment systems. A business can wire a deposit to an overseas equipment supplier. Delivery times and fees depend on the banks involved and the destination.
• Mobile wallets and peer-to-peer transfers. Mobile wallets store payment credentials, and peer-to-peer services let users send money to one another electronically. A shopper can pay with a saved card through Apple Pay. Someone reimbursing a friend can use Zelle, which processed more than $1.2 trillion in payments in 2025. These services use card or bank payment networks.
• Electronic checks. Electronic checks, or e-checks, are digital bank payments processed as ACH debits in the US. A wholesale buyer enters their account and routing numbers into an invoice portal, for example, and authorizes an ACH withdrawal to pay for an inventory order.
• ATMs. Automated teller machines initiate electronic transactions that debit or credit your bank account. Withdrawing $100 in cash at an ATM, for example, debits your account by that amount, plus any applicable fees.

How to accept EFT payments as a business

Accepting EFT payments starts with a receiving bank account and a way for customers to authorize payment. For online card payments, you’ll also need a payment processing service that works with your store.

In the 2025 AFP Digital Payments Survey Report, 46% of organizations in the US and Canada said they were very likely to convert eligible B2B check payments to digital methods, and 22% said most eligible B2B payments were already digital.

Before setup, gather:

• Business information. Your legal business name and the tax and identity details your payment provider requests.
• Banking information. Your account holder name, account number, and routing number.
• Payment terms. The accepted currency, payment deadline, and order reference customers need to provide.

Shopify stores have three routes:

Card and wallet payments at checkout

Activate Shopify Payments, complete verification, and connect your payout account.

In the US, cards and accelerated checkouts activate automatically. These include Apple Pay, Google Pay, and Shop Pay. Card-processing rates depend on your Shopify plan.

Eligible merchants can receive Shopify Payments payouts in Shopify Balance and manage those funds from their Shopify admin. You can use the Balance card to pay for business purchases, such as packaging supplies.

Bank transfer as a manual payment method

In your Shopify admin, go to Settings > Payments, add a manual payment method for bank transfers. Enter your bank’s receiving instructions and ask customers to include their order number.

Customers arrange payment separately through their bank. Once you confirm receipt, mark the order as paid in Shopify. Manual payments carry no Shopify third-party transaction fee, though bank fees can apply.

ACH Direct Debit inside Shopify Payments

ACH Direct Debit is available for eligible B2B orders paid in USD from US bank accounts. Your store needs:

• A US location that accepts USD currency
• More than 100 fulfilled orders
• An active Shopify plan after the trial period
• Completed Shopify Payments identity verification

In Shopify Payments, select Manage, then More actions and Manage payment methods. Enable ACH Direct Debit under Local payment methods.

Customers authenticate their bank accounts at checkout. Confirmation takes up to four business days. After settlement, funds follow your payout schedule.

Where to start with EFT payments

For everyday online orders, offer card and wallet payments through Shopify Payments. If you’re selling B2B, ACH Direct Debit lets buyers pay from a US bank account.

A manual bank transfer option works for customers who arrange payment themselves. Confirm receipt before marking their orders as paid.

Compare fees and payout schedules before adding a method. Check when the money will reach your account, especially if you need those funds to buy inventory or fulfill orders.