Is direct debit a form of EFT?
EFT(Electronic Funds Transfer) is an umbrella term for all online payments. Any payment conducted digitally, such as a wire transfer or credit card pay, is considered a form of EFT. In other words, since direct debit stores and saves banking information to make payments on a regular basis, it is considered a form of EFT.
Online payments are always at risk of hacking and safety issues. However, safety concerns should be limited as direct debit payments have high security and are protected. Actually, you run a higher risk of having your identity or money stolen if you pay physically at a location with your debit or credit card.
When looking into direct debit as a form of payment, make sure to fill out the form only after reading the terms. Some monthly subscriptions and terms are tricky because they have repercussions for cancelling early. Always look into these terms as they can cause issues in the future.
Direct Debits are great for automatic payments. They are done entirely electronically and are effortless since you don’t have to constantly fill out your banking information. Big bills like utility bills, rent, and loan repayments often use direct debit securely and efficiently.
EFT Direct Debit Conclusion
Direct debit is one of many different forms of EFT. Although these funds are distributed from one bank to another electronically, the process is safe. There are many security measures that should give you a sense of security and safety!