Follow up question: What's the difference between online bill pay and EFT?

EFT stands for electronic exchange, transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems. So all banking transactions online, whether you do them manually or set them up as automatic, are EFTs.

Agree with @Pachy. EFT = electronic funds transfer, or transfers from one account to another through computer-based systems. The term is broad and covers several different types of transactions – direct deposits, online bill payments, one-time transfers, and debit or credit card purchases.

Most of us only see the term where “the payee has been given the right to take a certain amount out of your checking account automatically”.

I have a form on my desk at this moment – “Electronic Funds Transfer (EFT) Authorization”.

Bill pay is a subset of EFT.