What is a characteristic feature of an Electronic Funds Transfer (EFT)?

The characteristic feature of an Electronic Funds Transfer (EFT) is the electronic exchange of funds between accounts. This process allows for the transfer of money from one bank account to another without the need for physical checks or cash transactions. EFT is highly efficient and typically involves minimal human intervention, leading to faster transaction times compared to traditional methods.

Using EFT, transactions can occur across different financial institutions, making it a convenient option for businesses and individuals alike for payments, payroll, and other financial operations. It also enhances security and reduces the risk of loss associated with physical cash or checks. Overall, the use of electronic means for transferring funds exemplifies the technological advancement in banking and finance, streamlining the way people conduct transactions.