Ace the 2025 CGFM Exam – Turbocharge Your Path to Financial Mastery!

Electronic Funds Transfer (EFT) is indeed the correct choice as it is distinctly classified as an electronic payment method. EFT involves the electronic movement of funds between bank accounts and requires the establishment of a formal agreement with the payees to authorize the transactions. This agreement usually outlines the terms and conditions governing the transfer of funds, ensuring that both parties understand their rights and obligations.

In contrast, credit card payments, while still electronic, do not require an explicit agreement with each payee for each transaction. Instead, users typically accept terms and conditions set by their credit card issuer. Cash payments occur physically at a point of sale and do not involve electronic means or require an agreement, as the transaction is instantaneous and transactional without any prep work. Check payments made via mail involve physical paper instruments and do not fall under the electronic category, nor do they necessitate a prior agreement for individual transactions as EFT does.