What does the term 'EFT' imply about the method of payment?

The term 'EFT' stands for Electronic Funds Transfer, which signifies that the payment is conducted through electronic means rather than traditional physical methods. EFT facilitates the direct transfer of funds between banks or financial institutions without the need for paper checks or cash transactions. This method is efficient and reduces the time required for processing transactions, making it ideal for various types of payments, such as payroll, bill payments, and electronic invoices. The emphasis on electronic means reflects the advancements in technology and banking practices that enhance convenience, speed, and security in financial operations.