What Does EFT Mean on a Bank Statement?
EFT stands for Electronic Funds Transfer.
What EFT means
EFT is an umbrella term for money that moves electronically instead of by paper check or cash. It includes direct deposits, ACH payments, debit card purchases, ATM withdrawals, online bill payments, and many app-based transfers.
For personal accounts, most EFTs are covered by the Electronic Fund Transfer Act and its implementing rule, Regulation E. Business accounts and most wire transfers fall under different rules.
How EFT appears on a bank statement
Some banks label electronic payments EFT where others write ACH. Illustrative examples:
EFT DEBIT ACME LENDING LOAN PMT
EFT CREDIT STATE TAX REFUNDWording varies by bank, so check your statement’s legend if a label is unclear.
Your rights if something is wrong
Regulation E gives you the right to dispute errors on electronic transfers, such as unauthorized charges, wrong amounts, or missing deposits. You generally need to report an error within 60 days after the statement showing it was sent. The bank must then investigate within set deadlines and, in many cases, provisionally credit your account while it does.
What to do if you don’t recognize an EFT
- Search the company name on the line.
- Check for autopay, subscriptions, or transfers you set up.
- Contact your bank promptly, and put your dispute in writing if the bank asks.