10. Electronic Funds Transfer (EFT)

This means the electronic transfer of money from one financial institution to another. The system that banks use is called BACS, originally it stood for 'Bankers Automated Clearing Services' but now it is just called BACS payments. If you have a personal bank account, then you can normally go online to make your own bacs payments.

Why is EFT used?

- It is much faster than having to make payments in cash

- It reduces costs. The money doesn't have to be physically counted.

- It increases safety. There is no longer a need to hold large sums of cash on the premises. This reduces the risk of theft. The number of security guards can be reduced.

- Payments can be made instantly.

- Mistakes can be quickly rectified. If the incorrect salary is paid, this can be adjusted as soon as the problem is identified.