What does electronic funds transfer refer to?

Electronic funds transfer refers to moving funds from one account to another over an online network. This process allows individuals and businesses to conduct transactions electronically rather than relying on physical means such as cash or paper checks. Electronic funds transfers (EFT) streamline the transaction process, making it quicker and more efficient. This method includes various types of transactions, such as direct deposits, wire transfers, and online bill payments, all of which are facilitated through digital systems.

The other options do not accurately capture the essence of electronic funds transfers. Transferring paper checks involves physical instruments and does not utilize electronic means, while withdrawing cash from ATMs is a specific action that is typically a subset of overall banking transactions and does not encompass the broader concept of fund transfers. Exchanging currency also deals with the conversion of one form of money to another, which is not the same as transferring funds between accounts in an electronic manner.