Business EFTs for a small business - what to know
Find out everything you need to know about business EFTs for a small business in South Africa.
What do small business owners need to know about EFT payments?
Online payment solutions have taken over many of the world’s payment transactions. Making a digital payment is the way to go. So, it’s essential that you, as a South African small business entrepreneur, understand and use electronic transactions. And this is where electronic funds transfer or EFT has become centre stage.
But don’t worry – this is not a high-tech article for computer experts. So, we spoke to Jenn, the owner of Cyrus Farm Health Store, to share her thoughts as a small business owner.
Do you want to know more? Take a look at Jen's answers to popular questions about business-related EFTs, including some good tips.
What is an EFT?
"It is an electronic funds transfer from one bank account to another bank account."
When should small businesses in South Africa do business EFTs?
"Anytime it is needed. For example, paying one of your suppliers for an order. I think a lot do it more than anything because it is secure."
How do I set up EFT for my small business in South Africa?
"It depends on the bank you use. First, you need to activate online or internet banking at your bank. Then, I would create a beneficiary on my internet banking profile."
Is an EFT just a bank transfer?
"Yes, an EFT is the same as a bank transfer if it is done between two bank accounts via your internet banking profile."
Do banks charge for electronic funds transfer?
"It depends on which bank you are with when it comes to bank charges."
What is the difference between wire transfer and EFT?
"Nothing as far as I know."
How long do EFT payments take?
"It depends. Instant payments are super quick. Regular EFTs can take up to three work days to clear."
How do I transfer a large amount of money between banks?
"You can do this with internet banking. Set up a beneficiary and make the payment."
How much money can you transfer from bank to bank?
"There is no limit as far as I know. However, it is best to check with your bank."
We're glad that we spoke to Jen about EFTs. Do you still want to know more? Then, read on for more information.
Learn more about business EFTs
As Jen touched on, an EFT is a process of making a payment by moving money digitally from one bank account to another, independent of any bank staff. The beauty of EFTs is that it’s paperless and quick, with minimal human effort.
What else is there to know? We have you covered. So, carry on reading to learn more.
What process is involved with EFT payments?
It's quite simple. Two people or businesses are involved - the one sends money (sender), and the other receives money (recipient).
First, a person or business making the payment starts a transfer.
Next, the request travels along digital networks via the internet or a payment terminal to reach the person's bank account or business being paid.
Lastly, the payment is then completed. However, the payment might not reflect immediately in the recipient's bank account, depending on the banks used and the type of EFT done.
How safe are EFT payments?
The best aspect of EFT payments is their security. Even though there is always some risk involved when using the internet to pay, everyone considers EFT payments to be safe.
So, choose highly reputable companies you can trust to get the most secure EFT payments.
How do you benefit from using EFT payments?
You can trust making EFT payments via reputable companies – they are fast, dependable, wallet-friendly, and effortless, saving your business time and money.
On the other hand, cash transactions are person-to-person, creating a risk of making mistakes and experiencing fraud while wasting expensive business time.
Also, an employee still needs to deposit cash physically at a bank, running the risk of theft on the way there.
An EFT payment solution eliminates all these disadvantages.
What about making international EFT payments?
The same EFT payments that companies use nationally can usually be used internationally.
Usually, there are international banking fees that need to be paid.
Also, some countries have specific regulations to handle large fund amounts.
You also need to consider exchange rates and foreign transaction fees.
Other requirements include the usual banking details and the SWIFT code of the recipient's bank.
Please check with your bank to find out what is needed because banks' requirements could differ.
Use Yoco’s payment gateway for fast results
Use the Yoco Gateway, Yoco's online payment gateway. You can receive card payments and instant EFT payments on your website. It only takes 5 minutes to set up.