EFT stands for “Electronic Funds Transfer,” which is a method of transferring money electronically from one bank account to another. This is a convenient and efficient way to transfer money that is adopted in the subscription billing platforms. This method allows you to transfer funds without the need for cash, cheques, or bank visits. Common examples of EFT include direct deposit, online bill payments, and wire transfers.
In SaaS, EFT typically refers to a payment method for purchasing subscriptions or services. This means that customers can pay for their SaaS products electronically, directly from their bank accounts, instead of using physical methods like cheques or money orders.
In subscription and billing management, an association with EFT commences when a customer signs up for a SaaS product and chooses EFT as their payment method. Following this, the SaaS company will provide the customer with their banking information. Now, the customer will initiate the EFT transfer from their own bank account to the SaaS company’s bank account. The fund is now transferred electronically and is credited to the SaaS company’s bank account. Finally, the SaaS company will verify the receipt of payment and process the customer’s subscription.
Thus, in the subscription business, EFT is used as a payment method for customers to pay for their recurring subscriptions or bills. By offering EFT as a payment option, subscription businesses can simplify their payment processing and reduce the risk of missed or overdue payments. EFT ensures that payments are made on time, improving the predictability and stability of a business’s cash flow. In short, EFT offers customers a convenient and efficient way to pay their bills, which can increase customer satisfaction and loyalty.