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Modern banking environments have greatly benefited from developments in Electronic Data Interchange (EDI) and electronic funds transfer. Explain EDI and EFT and show their contribution to...

Modern banking environments have greatly benefited from developments in Electronic
Data Interchange (EDI) and electronic funds transfer. Explain EDI and EFT and show
their contribution to better business transactions.

Answers

gregory
Electronic Data Interchange (EDI)
EDI is a form of computer-to-computer data interchange that is a form of electronic
mail. It mainly involves business documents and helps in accomplishing transactions e.g.
sending invoices.
Organisations have an agreed format for the electronic documents so that they are
recognised by all parties to the transaction.
Example: EDIFACT (Electronic Data Interchange For Administration, Commerce and
Transport).
? ELECTRONIC FUNDS TRANSFER (EFT).
This is a system whereby a computer user can use his/ her computer system to
transfer funds to another account from his bank account by sending electronic data
to his bank. It must involve the banks themselves.
An example is SWIFT (Society for Worldwide Interbank Financial
Telecommunications.)
ELECTRONIC FUNDS TRANSFER at POINT OF SALE (EFTPOS): Aims
tohandle, electronically, the high volume, low value transactions which make up the bulk
of payments by number which banks currently have to handle and process in paper
form. EFTPOS systems integrate the retailer‘s POS system, which may comprise bar-
code scanning or a sophisticated computerised cash register, with an electronic payment
system.
gregorymasila answered the question on December 17, 2017 at 13:36

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