What is a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents?

The term that best describes a computerized cash payments system which transfers funds without the use of checks, currency, or other paper documents is Electronic Funds Transfer (EFT). This system encompasses a wide range of electronic transactions that facilitate the movement of money between bank accounts, enabling individuals and businesses to send and receive funds quickly and securely. EFT can include direct deposits, wire transfers, and transactions conducted over the internet.

EFT streamlines financial transactions, reducing the reliance on physical payment methods and paper documentation. This efficiency can enhance the speed of transactions and improve cash flow for businesses and individuals alike. The use of secure networks ensures that transfers are reliable, accurate, and less prone to fraud compared to traditional methods.

While other options, like wire transfer and direct deposit, fall under the broader category of EFT, they represent specific types of electronic transactions rather than the entire system. Automated Clearing House (ACH) is also a component of EFT, specifically used for batch processing of transactions, commonly seen in payroll and ACH payments. Nonetheless, EFT is the overarching system that captures the essence of computerized cash payments without involving physical documents.