Electronic Funds Transfer (EFT) and the four types of EFT systems

The Electronic Funds Transfer (EFT) system allows money to be sent directly between banks without exchanging any paper money (Miller, 2016). The transaction occurs across a computer network, either in several accounts held by many banks or in various accounts held by one bank. In other words, an electronic terminal, computer, or magnetic tapes are used in EFT to transfer money. The following categories of AFT exist: ATMs with internet banking connections that let users access money using magnetic-stripe and PIN-enabled ATM cards; point of sale system that allows clients to access their funds and transfer them to pay via debit card; system handling direct deposits and withdrawals that allow consumers to authorize third parties to send funds into the accounts; pay by telephone systems that allow bank clients access funds from their phones and make direct payments of goods and services.

Bank’s liability for forged checks

A check is considered forged when signed by a third party without the consent of the account holder. The bank is accountable only when it accepts a forged check consciously; therefore, is responsible for returning the money to the account it was taken from. However, if the bank was not involved in any wrongdoing, it will not be held responsible for the forged check, but the liability is shifted to the drawer.

The point of sale system and disclosure requirements

Point of sale system is an essential application that makes transactions easier. The system is installed to receive money and track sales history made to customers. It is critical to know that one must explain to consumers that it is a chargeable service and should be written.

Secured transactions and their importance to the business environment

A secured transaction involves borrowing or taking money backed by financial establishment since the financial institution has some kind of interest from the person or the parties involved in making the transactions. For example, when a person takes a credit to buy the house the bank can take away the house if the person fails to make the payment as agreed. It is important to the business environment because it allows a person to start, run, and maintain a business through credit.

Reference

Miller, R. L. (2016). Fundamentals of Business Law Today (10th Ed.). Stamford, CT: Cengage Learning.