Difference Between Wire Transfer and Eft
Wire transfer and Electronic Fund transfer or EFT are two modern ways of making payment and transferring funds instantly to anyone across the globe without visiting the bank and filling any form.
We don’t even realize the technology behind these two modes while using them on daily basis for paying for our bills, airline tickets, grocery shopping and almost every other thing that we buy without using cash.
There isn’t much difference between the two terms because wire transfer is the acts of transferring funds electronically. Both are overlapping ad involve the use of computers. Wire transfer is a subset of EFT and we use the term wire transfer in case of bank to bank fund transfer mainly in international dealings while EFT is more used in domestic transfer.
Credit cards, debit cards, ATM cards etc are some of the best examples of wire transfer. As soon as we swipe the card the bank gets authority to transfer the funds electronically into the merchant’s account. In reality no fund is transferred. It is simply a virtual transaction of money. While doing the international transactions the currency is automatically converted and the amount is paid after calculation of the currencies.
It is wise to transfer funds electronically especially if it the amount is large. This is safe way of transferring money and saves lot of time and effort.