Legal Definitions - funds transfer

Definition: Funds transfer refers to the process of transferring money from one person or entity to another. This can be done through a series of transactions between computerized banking systems, starting with the payment order from the sender and ending with the receipt of the payment by the recipient's bank.

For example, if you need to pay your rent, you can transfer the funds from your bank account to your landlord's bank account using a funds transfer. This can be done online or through a mobile app, and the money will be transferred electronically from your account to your landlord's account.

Another example is when a company needs to pay its suppliers for goods or services. The company can use a funds transfer to send the payment directly to the supplier's bank account, without the need for a physical check or cash.

These examples illustrate how funds transfer can be a convenient and efficient way to make payments, especially for businesses that need to make large or frequent payments to suppliers or employees.