--- title: "Electronic funds transfer (EFT)" description: "An EFT is any money transfer started electronically instead of by cash or check. The main types of EFT, how ACH and wires differ and what to check." canonical: https://engine.com/glossary/electronic-funds-transfer updated: 2026-11-02 author: "Engine Editorial" --- # Electronic funds transfer (EFT) An electronic funds transfer (EFT) is any transfer of money, other than one started by cash or paper check, initiated through a terminal, phone or computer to debit or credit an account. Also called: EFT, electronic fund transfer Not to be confused with: A paper check Updated November 2, 2026 by Engine Editorial ## What is an electronic funds transfer (EFT)? An electronic funds transfer is money moved between accounts by an electronic instruction instead of cash or a paper check. This cheat sheet covers how to think about EFTs and what to check before you rely on one. The detail is further down. ### How to think about it - **Paper doesn't count.** Federal rules define an EFT as any transfer other than one originated by cash, check or a similar paper instrument. - **ACH and wires are both EFTs.** The federal definition names Automated Clearing House transfers, Fedwire transfers, and transfers at ATMs and point-of-sale terminals. - **ACH moves in batches.** Banks send each other batches of electronic credits and debits through the ACH network. Payroll direct deposit is a typical ACH credit. - **Wires are for big, urgent payments.** The Federal Reserve says its Fedwire Funds Service is generally used for large-value, time-critical payments. ### What to check - **Business accounts.** Regulation E, the consumer EFT rule, covers accounts established primarily for personal, family or household purposes. - **Wires.** Regulation E excludes transfers through Fedwire or similar wire systems used mainly between financial institutions or between businesses. - **Wire hours.** The Fedwire Funds Service runs from 9:00 p.m. ET the previous calendar day to 7:00 p.m. ET, Monday through Friday, excluding designated holidays. ## Types of EFT | Type | How it works | Typical example | | --- | --- | --- | | ACH credit | Banks send batches of electronic credits through the ACH network | Payroll direct deposit | | ACH debit | Banks send batches of electronic debits through the ACH network | Direct debit of a mortgage or utility bill | | Wire (Fedwire) | A participant tells a Federal Reserve Bank to debit its account and credit another participant's | Large-value, time-critical payments | | Debit card and point of sale | A card transaction debits the cardholder's account | Paying a merchant with a debit card | | ATM | A transfer made at an automated teller machine | A deposit made at an ATM | ## How it works on Engine On Engine, you can pay with major credit cards, ACH bank transfer, Google Pay or Apple Pay, according to [Engine's billing overview](https://engine.com/blog/our-best-features-for-simplifying-billing). With [Direct Bill](https://engine.com/features/direct-bill), Engine pays eligible hotels and invoices the company in arrears on one consolidated invoice. Direct Bill invoices can be paid by ACH, wire transfer or check, and Direct Bill customers can set up AutoPay. ## One invoice for company hotel stays With Direct Bill, Engine pays eligible hotels and bills your company in arrears on one consolidated invoice. Free to use. [Get started](https://engine.com/sign-up) ## Questions ### Is ACH the same as EFT? ACH is one type of EFT. The federal definition of an EFT includes ACH transfers, Fedwire transfers, and transfers made at ATMs and point-of-sale terminals. ### Is a wire transfer an EFT? Yes. Fedwire transfers are named in the federal definition of an EFT. Regulation E's consumer protections, though, exclude wire transfers used mainly between financial institutions or between businesses. ### Is a check an EFT? A paper check is not. Under Regulation E, though, when a merchant uses the routing and account numbers from a consumer's check to start an ACH transfer, that transfer is an EFT. ### What are examples of ACH payments? The Federal Reserve lists direct deposit of payroll, Social Security benefits and tax refunds as typical ACH credits, and direct debits for mortgages and utility bills as typical ACH debits. ### Who runs the ACH network? The Federal Reserve Banks and the Electronic Payments Network (EPN) are the two national ACH operators. ## Go deeper - [Engine Direct Bill](https://engine.com/features/direct-bill) - [Pay for hotels your way with Engine Direct Bill](https://engine.com/blog/pay-for-hotels-your-way-with-hotel-engine-direct-bill) - [Virtual card](https://engine.com/glossary/virtual-card) - [Hotel billback](https://engine.com/glossary/hotel-billback) ## Sources 1. Electronic Code of Federal Regulations (eCFR), "31 CFR 208.2 Definitions," https://www.ecfr.gov/current/title-31/subtitle-B/chapter-II/part-208/section-208.2, accessed November 2, 2026. 2. Consumer Financial Protection Bureau, "§ 1005.3 Coverage.," https://www.consumerfinance.gov/rules-policy/regulations/1005/3/, accessed November 2, 2026. 3. Consumer Financial Protection Bureau, "§ 1005.2 Definitions.," https://www.consumerfinance.gov/rules-policy/regulations/1005/2/, accessed November 2, 2026. 4. Board of Governors of the Federal Reserve System, "Automated Clearinghouse Services," https://www.federalreserve.gov/paymentsystems/fedach_about.htm, accessed November 2, 2026. 5. Board of Governors of the Federal Reserve System, "Fedwire Funds Services," https://www.federalreserve.gov/paymentsystems/fedfunds_about.htm, accessed November 2, 2026. 6. Engine, "Direct Bill for Company Hotel Travel," https://engine.com/features/direct-bill, accessed November 2, 2026. 7. Engine, "Our Best Features for Simplifying Billing," https://engine.com/blog/our-best-features-for-simplifying-billing, accessed November 2, 2026. 8. Engine, "Pay for Hotels Your Way with Engine Direct Bill," https://engine.com/blog/pay-for-hotels-your-way-with-hotel-engine-direct-bill, accessed November 2, 2026.