What is EFT? What is a Remittance? What are the Differences Between EFT and Wire Transfer?

Thanks to today's technological opportunities, it is easier than ever to send or receive money! Thanks to mobile applications and internet banking, money transfer can be made in just a few steps, without the need to go to a bank branch or ATM. Moreover, it is possible to send money not only to buyers in the same bank, but also to buyers who have an account in another bank, on the same day, via EFT and Wire Transfer.

What is EFT?

Money transfer technology, whose full name is Electronic Funds Transfer, is used to transfer money between different banks. In other words, a person can send money to people who have an account in a different bank, or to his/her own account in a different bank, with EFT.

What is a Remittance?

Remittance, on the other hand, is a transaction that allows a person to transfer money to an account in a different branch within the same bank or to another person using the same bank. Since only one bank is used when wire transfer is made, money transfer takes place more quickly compared to EFT.

EFT – Remittance Differences

Both transactions are the simplest ways to transfer money today; but there are basically two differences between them: the banks used and the processing time.

Since the money transfer is a transfer between accounts within the same bank, it can only be done with name, surname and IBAN information. When making EFT, in addition to this information, the receiving institution, bank branch and account number may also be required.

Since EFT is an interbank transaction, it can only be applied on non-public holidays and during working hours. For example, if you place an EFT order on the weekend or after working hours to send money to someone, the money will be transferred to the receiving account at the start of the next business day. Remittance, on the other hand, can be made 7/24, regardless of holidays and working hours, since it is between accounts of a single bank in different branches or belonging to different people.

EFT – Remittance Hours Removed?

It is possible to transfer money instantly with the FAST​ technology, which ends the time limitation for EFT and money transfer transactions.

FAST enables to send the sums of up to 5.000 TL to someone else 7/24 within minutes. Thus, there is no need to wait for the money transfer to take place, as in EFT. In other words, FAST largely removes the time limit on transfer transactions. In this way, people who do not have the opportunity to make the necessary payments during the day due to the busy schedule can easily make money transfers when they are available.

On the other hand, money transfer transactions are made easier with Easy Address Definition: This system, which represents the process of matching information such as mobile phone, TR Identity Number, e-mail address, which can be remembered more easily compared to IBAN, with IBAN, EFT, money order without the need for IBAN. and allows you to transfer money with FAST.