An Electronic Funds Transfer (EFT) is the automated exchange of funds and information about the funds' application to a bank account. An EFT is one form of Electronic Commerce.
Businesses are adopting EFT to transmit payments and remittance data electronically as a cost-effective alternative to check payments. Because of the increased usage by businesses, financial institutions are expanding capabilities to originate and receive financial EDI payments and process remittance information.
Electronic Data Interchange (EDI). The Data Interchange Standards Association, INC. (DISA) definition of EDI is the transmission, in a standard syntax, of unambiguous information of business or strategic significance between computers of independent organizations. EDI is the common "language" used to get information from one computer to another. Users must translate this information to or from their own computer systems, but this translation software has to be prepared only once. (DISA Information Manual page 1).