Electronic Funds Transfer (EFT)
Electronic Funds Transfer (EFT) is the direct electronic movement of payment from a payer into a provider's bank account, replacing paper checks. EFT speeds ASC cash receipt and, paired with electronic remittance, enables faster and cleaner payment reconciliation.
What is Electronic Funds Transfer (EFT)?
Electronic Funds Transfer (EFT) is the direct, electronic movement of money from a payer into a provider's bank account, taking the place of a mailed paper check. The payment travels through the banking network and lands in the account without anyone handling or depositing a physical document.
EFT addresses only the transfer of funds; the explanation of what the payment covers usually arrives separately as electronic remittance. Together, the two complete a fully electronic payment-and-reconciliation cycle.
Why does EFT matter for the revenue cycle?
Receiving funds electronically removes the float and handling delays of paper checks, so cash reaches the center's account faster and more predictably. It also reduces the risk of lost or misrouted checks and the staff effort of manual deposits.
When EFT is paired with electronic remittance, the deposited amount can be matched cleanly to the corresponding claims, making reconciliation faster and more accurate. For an ambulatory surgery center, that tighter linkage shortens the time between payment and a closed account.
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