Electronic Transfer of Money Law and Legal Definition

Electronic transfer of money is the transfer of money with the aid of computer-based systems which are used to perform financial transactions electronically. It is the electronic exchange or transfer of money from one account to another, either within the same financial institution or across multiple institutions. Such transfer can be cardholder-initiated transactions, where a cardholder makes use of a payment card or it may direct debit payments, in which a business debits the consumer's bank accounts for payment for goods or services.

The following is an example for a state statute (Nevada) defining the term Electronic transfer of money :

According to Nev. Rev. Stat. Ann. § 463.01473 "Electronic transfer of money" means any transfer of money, other than a transaction initiated by a check, draft or other similar instrument, that is initiated through an electronic terminal, telephone, computer or magnetic tape for the purpose of ordering, instructing or authorizing a financial institution or person holding an account on behalf of another to debit or credit an account.