EFT Credits originate whenever a customer of a bank issues a payment instruction to his or her bank via various delivery channels (e.g. internet) to make an electronic payment to a third party, accepting that such payment will not be made immediately but either later that day or on a future date.
EFT credits are widely used by employers to make salary payments and are used more and more by customers to replace Cheque payments, especially by issuing the instructions through use of the Internet or Call Centre services of their bank. Customers must ensure that the correct beneficiary account number and branch code are provided to the bank when issuing the payment instruction as all processing/transfer of funds is performed solely based on this account number and branch code.
Transactions mandated by customers are sent by the Paying Bank to the Receiving/Beneficiary Bank at the close of the day in a batch via the PCH System Operator (PSO) to be credited to the account of the customer. Such a transaction is final and irrevocable. The transaction cannot be reversed once processed by the receiving bank. Any mistake may only be corrected by way of a new transaction initiated with full approval of the recipient of the funds. Batches of transactions received from other banks are processed overnight by the receiving bank to the account of its customer and unsuccessful transactions are returned to the paying bank the next business day. This process does not apply to bank errors.