What is the difference between EFT and ACH?
These terms are used interchangeably. They both refer to the manner in which funds are electronically sent via the Federal government’s clearing house system. ACH, Automated Clearing House, refers to the government’s system that supports electronic transfers. EFT, Electronic Funds Transfer, refers to the process in which funds are sent through this clearinghouse system. Using either term is appropriate when referring to direct deposits and automatic payments debited from checking and savings accounts.
