What is the term for a payment method that transfers funds electronically?

The term for a payment method that transfers funds electronically is "Electronic Payment." This term encompasses various forms of transactions that utilize technology to move money from one account to another without relying on physical currency. Electronic payments can include credit card transactions, online bank transfers, mobile payments, and automated clearing house (ACH) transactions, among others. These methods provide convenience and efficiency compared to traditional payment forms, making them increasingly popular in today’s digital age.

While wire transfers are a specific type of electronic payment, the broader category includes all forms of electronic transactions, which is why "Electronic Payment" is the correct term in this context. It's important to recognize that cash payments and checks do not involve electronic transfer processes, making them distinct from electronic payment methods.