Electronic Fund Transfer
As defined in
the ELECTRONIC FUND TRANSFER ACT, any transfer of funds, other than a
transaction that is originated by a paper instrument, that is initiated
through an electronic terminal, telephone, or computer or magnetic tape
and that orders or authorizes a financial institution to debit or credit
in the act are the following:
Such types of
transactions as the preceding, however, would be included in any broad
definition of electronic fund transfers, which comprehensively would include
all types of transfers and data processing effected by means of electronic
equipment and systems, involving both internal transactions within an
institution or firm and external transactions with other institutions
which arise when an originator firm uses an AUTOMATED CLEARINGHOUSE unit
in the automated clearinghouse electronic clearing and settlement system
to collect the payments, include consumer payments, include consumer payments
(such as insurance premiums, mortgages, and utilities) and corporate payments
(such as accounts receivable and cash concentration). Commercial credits, which arise when the originator firm uses
an automated clearinghouse to make payments, include corporate payments
to consumers (such as payroll payments, dividends, and annuities) and
corporate payments to other firms (such as accounts payable and payments
to credit card merchants).
Included in any comprehensive definition of electronic fund transfers, therefore, would be the following facilities:
in retail banking is facilitated by such types of electronic equipment
as the following:
For the future,
additional volume is projected for both consumer and commercial electronic
banking, including expansion in volume of the automated clearinghouse
system. In the words of the
Senate Banking Committee, "this new generation of financial services offers
the public significant new choices in personal banking and has the potential
to be of great benefit to consumers."
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