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EFT
Electronic Funds Transfer, or EFT, allows us to send payments to your payees
electronically, rather then cutting and mailing a paper check. EFT payments are
especially advantageous because your payee receives payment faster than with a
paper check, and there is no risk of a check getting lost in the mail.
Just like Payroll Direct Deposit and ATM transactions, EFT payments are extremely
safe. All payment information is encrypted with 128-bit SSL and sent through a
secure communications channel. Information cannot be redirected, read, or tampered with.
In general, the EFT process can take up to 3 business days. Listed below is an example of how an EFT payment reaches your payee. Monday: Payment is issued and the EFT process initiates. The payment leaves your Payment Outbox and can be viewed as a report. Tuesday: Your payment account is debited via ACH (Automated Clearing House). ACH is the national standard for debiting a funding account. Wednesday: Payment is sent to your payee via RPPS (Mastercard Remote Payment and Presentation Service). Thursday/Friday: Depending on your payee's "back-end processes," the payment may post to your account.
Although most EFT transactions take up to 3 business days, it's important to note that
some EFT transactions may clear your bank account the same day they are issued. Be sure
your account is funded in advance to avoid bounced payments.
EFT transactions are not immediate (like a wire transfer). When an EFT is generated, the funds for your payment are ACH debited from your payment account within 24 business hours. However, it can take up to 3 business days before your bank releases these funds to us. To expedite the EFT process, we issue payment to your payee immediately. Your payee will generally post this payment to your account within 3 business days.
Once the funds you authorized are released from your bank, they are deposited
with us. Since some banks can take up to 3 business days to release your funds to
us, there is no "floating" of your funds or interest earned. Essentially, we have
made payment on your behalf and your funds are used to "repay" us.
If you authorize payment in advance, your EFT will be sent at 3 PM CT on the day
you designated the payment to be sent. To have an EFT issued on the same day you
authorize payment, you must authorize the transaction by 3 PM CT.
For payees who can accept EFT, we recommend that you set the payment date at
least 3 business days in advance of the due date. Although it's important to
note that some EFT transactions may clear your bank account the same day they
are issued. Be sure your account is funded in advance to avoid bounced payments.
Some EFT transactions can take up to 3 business days (from your scheduled payment
date)to clear your account, while others may clear your bank account the same day
they are issued. Be sure your account is funded in advance to avoid bounced payments.
As with a paper check, your account must be adequately funded to cover all payments.
Some EFT transactions may clear your bank account the same day they are issued, so be
sure your account is funded in advance to avoid bounced payments.
Although most large payees accept electronic payments, many smaller payees
do not have the technology to accept them at this time. In these cases, you may
issue a paper check. However, there may be other reasons why you are unable to
issue an EFT payment (such as collections issues).
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