Chapter 14.2, Problem 2R

To determine

To evaluate: The advantages and disadvantages of electronic funds transfer.

Explanation of Solution

Electronic Funds Transfer
Advantages	1. There is less red tape involved, which reduces the amount of work hours spent on collecting payments. 2. Payments are less costly than paper cheques. 3. Compared with conventional payment methods, e-payment is very easy. 4. Digital payments improve transparency and surveillance, reducing the risk of corruption and robbery.
Disadvantages	1. It will not provide a copy of the check which has been cancelled. 2. It provides round the clock buying incentives. 3. Customers need to instantly have the funds available. 4. Payment methods online are cumbersome for off-line sales.

Transfers of electronic bills, and mobile payments are all measures of current development. Such adjustments are called electronic funds transfer, or electronic money transfer from one account to the next.

Economics Concept Introduction

Introduction: Electronic transfer of funds is a method of transferring of money electronically from one to another bank. Innovation is extremely important to banks, as it provides fresh and convincing ways of attracting new business and growing customer loyalty.