Q: I normally use wire transfers to send out money but my friend uses EFTs. What is the difference

A: “EFT” stands for “electronic funds transfer”. In other words, the transfer is done electronically. If you transfer funds through your bank, credit union, or a similar financial institution, then you most likely have affected an electronic funds transfer. This type of transfer can be quicker to accomplish than a wire transfer, although the funds may not show up until the following business day if it was done after “normal banking hours”.

On the other hand, if you use a company such as Western Union to transfer money, then you are most likely making a wire transfer. In this situation, you usually have to go to a place that offers wire transfer services (such as a grocery store or retail outlet) and complete a form.

You then actually pay the money, and sometimes this must be cold, hard cash-no debit or credit card or check can be used. The person assisting you then sends the form to the location where the recipient will be picking the money up at, and the funds will be made available when the recipient comes in.

There may be a delay in the transfer of the forms from the originating location to the destination location; however, once the form has been received, the person for whom the money is intended can claim the money. He may have to show identification, and the money will most likely be issued in the form of cash.