DESIGN AND IMPLEMENTATION OF ELECTRONIC FUND TRANSFER SYSTEM

1.1 Introduction

Electronic fund transfer system is an organized process of transferring fund through electronic means by the use of computer where debits and credits are made into ones account. Access Bank Nigeria Plc, is one of the commercial Banks which has ventured into EFT. The system allows a customer’s account to be credited electronically with 24 hours anywhere in Nigeria, it transferring fund when compared with the traditional means such as mail transfer and telegraphic transfer. It is mere secure and time is saved when money is transferred through EFT. The system is designed to handle the needs of fund transfer customers and agent in on efficient and user friendly manner. Both new and experienced can use this work, it documents the software works following the flow of transaction as they usually occur. The money link system provides frameworks within various relationships among states operating it.

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Limitations of the Study and Definition of technical terms.

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1.2 Background of Study

Electronic Funds Transfer (EFT) is method of transferring funds automatically from one account to another by electronic means. One example is electronic funds transfer at point of sale (EFTPOS), which provides for the automatic transfer of money from buyer to seller at the time of a sale. A customer inserts a plastic card into a point-of-sale computer terminal in a supermarket, for example. Telephone lines are then used to make an automatic debit from the customer’s bank account to pay the bill. For many consumers, electronic banking means 24-hour access to cash through an automated teller machine (ATM) or Direct Deposit of paychecks into checking or savings accounts. But electronic banking now involves many different types of transactions.

Electronic banking, also known as electronic fund transfer (EFT), uses computer and electronic technology as a substitute for checks and other paper transactions. EFTs are initiated through devices like cards or codes that let you, or those you authorize, access your account. Many financial institutions use ATM or debit cards and Personal Identification Numbers (PINs) for this purpose. Some use other forms of debit cards such as those that require, at the most, your signature or a scan. The federal Electronic Fund Transfer Act (EFT Act) covers some electronic consumer transactions.

Electronic Check Conversion converts a paper check into an electronic payment at the point of sale or elsewhere, such as when a company receives your check in the mail. In a store, when you give your check to a store cashier, the check is processed through an electronic system that captures your banking information and the amount of the check. Once the check is processed, you’re asked to sign a receipt authorizing the merchant to present the check to your bank electronically and deposit the funds into the merchant’s account. You get a receipt of the electronic transaction for your records. When your check has been processed and returned to you by the merchant, it should be voided or marked by the merchant so that it can’t be used again. In the mail-in situation, you should still receive advance notice from a company that expects to process your check electronically.

Be especially careful in telephone transactions, which also could involve e-checks. A legitimate merchant should explain the process and answer any questions you may have. The merchant also should ask for your permission to debit your account for the item you’re purchasing or paying on. However, because telephone e-checks don’t occur face-to-face, you should be cautious with whom you reveal your bank or checking account information. Don’t give this information to sellers with whom you have no prior experience or with whom you have not initiated the call, or to sellers who seem reluctant to discuss the process with you.

Not all electronic fund transfers are covered by the EFT Act. For example, some financial institutions and merchants issue cards with cash value stored electronically on the card itself. Examples include prepaid telephone cards, mass transit passes, and some gift cards. These “stored-value” cards, as well as transactions using them, may not be covered by the EFT Act. This means you may not be covered for the loss or misuse of the card. Ask your financial institution or merchant about any protections offered for these cards.

The Electronic housing founds its application and acceptance in the banking profession has particularly put the banking industry on an accelerating pace of development. The Technological high may (Electronic) has become an enable in achieving high level productivity and in handling volumes of transaction which would have been impossible without the use of On – line banking (E – Commerce). Electronic banking allows clients to engage in formal transaction relationship, which would have taken long distance travel or movement of document with the attendant risk of loss. With the On – line banking (Electronic) you can at your convenience at home and at any time, review balances and transaction services and contact customer services but just to mention but few. An over view of the benefit and prospects of the On – line banking suggest that for banks to be relevant to their customers in terms of the services they provide in the twenty first century and in the future most append this services provide by E – Commerce in the banking system in order to stay in competition. Now that an on –line banking is the on thing bank should get up and invest in electronic Technology to reap bounteously the benefit accruing from Electronic banking.

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1.3 Statement of Problem

Investigation revealed that Fund transfer is a job that involves complex date and tedious calculation. Manual transfer wastes to much times, it is generated very late, where there are many customers to attend to, it takes weeks to prepare the transfer which may affect the purpose of the transfer. Some are short paid and thus makes the system unreliable. The use of files, papers and file cabinet cost much and occupies much space. It also wastes a lot of time during information retrieval.

Most banks are still far from implementing technology-based strategies able to see them through competition in banking markets. This may be as a result of lack of awareness, the inability to evaluate the benefit derived from the use of the recent technological development (Electronic) and capital shortage that may hamper the design and subsequent implementation of the technological tool hence denying customer of this advances services and their flexibility choice and convenience associated with the Electronic banking.

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1.4 Aim and Objectives of the Study

The aim of the study is to design and implement an electronic fund transfer system. In achieving this aim, the following specific objectives were laid out as follows to develop an application software that will:

1. Provide a very fast convenient, reliable and secure way of crediting to the accounts of their friends and relatives.
2. Improve the customer’s convenience by reducing barriers to entry into payment systems and retail banking.
3. Provide accurate and timely information will be made available hence efficiency will be advanced.
4. Maintain operational efficiency as a means of warding off competitive threat.
5. Compare the advantages of old bank fund transfer systems or payment systems, with the new electronic fund transfer system.

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1.5 Significance of Study

The relevance of the proposed system is expected to make theoretical and practical contributions to the present day electronic banking system, by taking critical look at previous payment systems, and the advantages of the new electronic fund transfer system developed.

This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.

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1.6 Scope of Study

The study focuses on the design and implementation of an electronic fund transfer system. It is concerned with the method of fund transfer. That is crediting fund from ones account in one’s state to another account as another state all in the same country.

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1.7 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Research material: availability of research material is a major setback to the scope of the study.
3. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
4. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet).

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1.8 Definition of Terms

Transfer: moving money (find) from one place to the other.

Database: A collection of logically related data to meet the information need of organization.

DBMS: Database management software that enable the user to define, maintain Control the database.

Application Program: A computer program that interacts with the database.

MENU: This is a list of options presented on the screen with each option identified by short code followed by longer description of its purposes.

Flowchart: A diagram that shows connection between the different stages of process of the system.

Primary Key: The candidate key that is selected to identify the individual within the relation

Foreign Key: An attribute or a set of attributes within one relation that matches the candidate key

Relation: A relation is a named table with columns and rows

Attribute: An attributes is a named column of a relation

Relation: A relation is a table with rows and columns

Domain: A set of allowable values for one or more table

Null: It represents a value for an attribute that is currently unknown or not applicable

Database design: The process of creating a design that will support emprise mission statement and mission required database e system.

Software: These are program for computer which allows certain specific task to be accomplished e.g. word process etc.

Hardware: Computer equipment used to perform input processing and system output activates.

Management information system: Collection of people, database, and devices produced to use in providing routine information to manager and decision makers of the organization.