Difference Between Similar Terms and Objects

Difference Between Wire Transfer and EFT

Wire Transfer vs EFT

The advent of globalization has removed the difficulty of transacting business with other countries. It has removed export fees and tariffs and led to the linking of the economies of different countries through free trade, direct investment, spread of technology, capital flow, and migration of citizens and workers.

Worker migration has become one of the biggest income generating sources of most economies especially those in the underdeveloped or developing countries. Migrant workers send most of their earnings home in the form of remittance.
Remittance is an indispensable part of every economy in countries such as the Philippines, India, Sri Lanka, and most Asian countries. It is the process of transferring money from a certain individual to another who is located at a far away place which makes it impossible to give the money in person.

Banks and other financial institutions offer their services in remittance transactions. It is done using a single or several financial institutions. There are several ways to remit or send money; the most widely used today is the Electronic Fund Transfer (EFT).
It is done electronically and utilizes computer networks. It includes credit and debit cards which are used to pay for purchases and other services, payroll accounts of employees of a business enterprise, direct debit payments of bills such as electricity and cable bills, online banking, and wire transfers.

A wire transfer is a type of electronic transfer from one entity to another. It is channeled through one bank account to another or through other financial institutions such as Western Union and some pawnshops that also offer this service. It is a secure way to send and receive money. While wire transfers may be secure, some EFT services such as credit cards have been subject to controversies over security. Credit card fraud has become widespread, and clients are robbed of their money this way.

EFT offers a convenient way to pay bills and obligations, though it is now possible to pay taxes, Social Security, school obligations, salaries of employees, purchases of goods and services, and even purchases of plane tickets. It is already possible to purchase materials that can only be purchased from another country and pay it electronically. After payment has been sent, the item will be delivered to the customer. A wire transfer is usually received in cash but may also be used for online transactions.
Summary:

1.Electronic Fund Transfer is the electronic transfer of funds and includes the use of credit cards and debit cards, the online transfer of funds from an employer’s account to the employees, accounts, and bill payments while a wire transfer is a type of Electronic Fund Transfer.
2.A wire transfer is considered the most secure form of transferring funds from one entity to another while some types of Electronic Fund Transfers, such as credit cards, have security problems.
3.Both are very convenient and make certain transactions a lot easier and less complicated, take little time to accomplish, and do away with the troubles one can encounter when transacting payments manually.


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