What are Remittance and EFT and Their Differences?
What is a Remittance?
These terms, which we often hear, are transactions widely used today by both individuals and corporations. In fact, both are money transfers, but they have different aspects and application methods. We want to explain these terms and their usage to resolve the question marks in our minds.
What is EFT?
A remittance is a money transfer transaction between different accounts belonging to the same bank. For example, if two people have two different accounts belonging to Garanti Bank and they want to transfer money between these accounts, they can do so by remittance. There are several ways to perform a remittance transaction. The first and easiest of these is to make a remittance using internet banking. Through the bank's website, by following the transfer operations, remittance is selected, and the transfer is carried out by entering the relevant account number or IBAN number. Another method is remittance transactions made from ATMs. For this, one goes to an ATM belonging to the bank where the account is held and performs the transfer operation through the relevant menus. The third and last method is to go to the bank branch in person and carry out the remittance transaction through a teller. Remittance fees vary from bank to bank. EFT stands for Electronic Fund Transfer. To touch upon its difference from remittance; in remittance, the transfer was made between accounts belonging to the same bank, but in EFT, money transfer is made between accounts belonging to different banks. Since EFTs are manual, they cannot be performed after 5 PM. However, remittances are made 24 hours a day. Like remittances, they can be carried out via the internet, ATMs, and branches.
