Electronic Funds Transfer vs. Wire Transfers

Electronic Funds Transfers

Electronic Funds Transfers (EFTs), also known as ACH transactions, are similar but not identical to wire transfers. EFTs by design are secure and efficient electronic transactions sent electronically to bank accounts within the U.S. EFTs have a two day settlement period and will be credited to the payee’s bank account within two days of the Berkeley Financial System (BFS) payment date. Although BFS can generate both checks and EFTs, the latter is the preferred method of payment for vendor, employee reimbursements*, and student transactions.

Wire Transfers

Wire transfers, although also sent electronically, are a non-routine payment method as they are relatively labor intensive and consequently expensive to transact. There is no specific settlement period and the University cannot ascertain in advance when funds transmitted by wire transfer will be credited to the beneficiary’s bank account as the wire instructions may require processing by multiple financial institutions before they are finally credited to the payee’s bank account.

As EFTs represent a much more efficient method of transferring funds within the U.S., the Berkeley Campus will not send wires to U.S. banks. Disbursements will execute wire transfers upon request by departments for international payments but only when required by the international vendor.

Read specific instructions for EFT transactions.

Read further information on wire transfers and required documentation.

For further information, please contact Disbursements at 643-2199 or disburse@berkeley.edu.

*Petty cash reimbursements must be made via check, however.