What is the primary function of the Electronic Funds Transfer System (EFTS)?

The primary function of the Electronic Funds Transfer System (EFTS) is to facilitate electronic transactions and fund transfers. EFTS enables individuals and businesses to move money electronically from one bank account to another, streamlining the payment process and increasing efficiency in transactions. This system supports various types of electronic payments, including direct deposits, debit card transactions, and online bill payments, making it an essential component of modern banking and commerce.

By using EFTS, financial institutions can ensure that transactions are processed quickly and securely, reducing the need for physical checks or cash handling. This capability not only enhances convenience for consumers but also plays a crucial role in the overall efficiency of the financial ecosystem.