EFT


 * 1. **** Describe the term. **

EFT (Electronic Funds Transfer) is safe, secure, and less expensive than paper checks and efficient in a system of electronics payments and collections by computers. Furthermore, it’s how people transfer their funds between different accounts or different banks through the use of wire transfer, automatic teller machines, or computers and without the use of papers documentary by the facilities of the Automated Clearing House (ACH).

Referring to strand 3 IT terminologies, EFT required **Internet** connection for the main source of transferring as the automatic teller machines could have done processing payments via the online funds transferring. For example, customer A has and EFT with the electronic payments company that they can actually transferred money on the due date of monthly payment. **Database and spreadsheet** have similar abilities among clarifying data and information. Storing data and sort of data is considered spreadsheets but not a long term used. For example, storing customer’s personal information and ID number as well as keep track of each customers history or transactions.
 * 2. **** Describe the use of IT in each area, (internet, database, etc) **




 * Steps to perform EFT: **
 * To perform EFT first you must have an account with the bank.
 * Then go to the bank’s website to register for the service.
 * You will be asked to download and fill up a form and submit it to the nearest branch.
 * Once submitted the banks will create an online account for you and provide you with the ID and password.
 * You can then log into your account and perform necessary actions.
 * You can even change the ID and Password for security reasons.

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Advantages of Electronic Funds Transfer (EFT): EFT is similar to other direct deposit operations such as paycheck deposits, and it offers a safe modern alternative to paper checks. Providers who use EFT may notice the following benefits: []
 * 3. **** Explain how IT helps with each area. Benefits of EFT, List **
 * Reduction to the amount of paper in the office
 * Valuable time savings for staff and avoidance of hassle associated with going to the bank to deposit Medicare check which means to no worry of any checks got stolen or delayed.
 * The number of people, which access to your financial institution account information, is reduced.
 * Faster access to funds; many banks credit direct deposits faster than paper checks
 * Easier reconciliation of payments with bank statements.

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 * 4. **** Describe any problems with IT in each area. Negative aspects **
 * As the benefits mentioned above states that EFT avoid the risk of checks are being stolen or get damaged, however EFT still face with the risk of hackers that ruin to private information during transactions. Even though most business powerful encryption systems in order to ensure that the information contained in an EFT remains private, but the possibility remains that a skilled hacker may unlock that information and it seems to show that this is continued going among the advances of encryption.
 * As we know that EFT dependently on technology which requires Internet to run all software. We say it’s quick and easy, but when the power failure occurs, software and computer are basically shut off as for it’s not allowed you to engage in any EFT transactions.
 * The most risk is that once you have entered the target account number incorrectly, there is no way to reverse the transaction.
 * Last but not least, only one small problem, which is EFT, is not working in every country around the world.


 * 5. Identify and explain possible issues with each area. (Strand 1) choose 3 is better **


 * Security: ** Security related to the EFT systems and to protect their information from illegal and unauthorized access. Since, EFT involves in term of electronics payments, which led to many points of access that can be unauthorized because each user connected to various telecommunications lines and the way which data aggregated and transmitted among and between sites and institutions. EFT crime is a simple problem as for funds and data can be manipulated or remove the all the complex in computer software; there might be only few experts that understood within the institution.


 * Reliability and Integrity: ** The issue is Reliability as the disadvantages of EFT considered to Internet connection for the overall systems to work, without Internet connection means that there are no way to engage with EFT system.


 * Privacy: ** EFT concerns in privacy because in order to engage in EFT systems, people do need an account that includes personal private information to inform via the usage of EFT. Furthermore, the personal private information might be involved in third parties by financial institutions. The businesses that aim to use EFT must be strict that their encryption of information is really working well. Efficiency must be fulfilled with financial systems because during transaction basically carry out secrets information to the business intuitions, such as encryption processed.


 * Authentication: ** it is simply “confirmation” of the users to confirm whether the transaction or any payments are under the action of users account only. The users need to verify it I order to process the transferring of money to another account. This allows customers to be sure that the merchant they are sending their credit card details to be who they say they are. It can also allow merchants to verify that the customer is the real owner of the credit card.