What does the term 'funds transfer' refer to?

The term 'funds transfer' specifically refers to the process of moving money electronically from one party to another. This definition encompasses various forms of electronic payments, including wire transfers, direct deposits, and online payment systems. Such transfers can occur between bank accounts, financial institutions, or individual accounts, facilitating swift and secure transactions without the need for physical cash.

In this context, electronic funds transfer is crucial for modern financial systems, as it promotes efficiency and accessibility in monetary transactions on a global scale. The ability to send and receive money quickly and safely is a fundamental component of financial operations, making electronic funds transfer a key concept in the principles of payments.