ELECTRONIC FUNDS TRANSFER (EFT) IS A TECHNOLOGICAL NETWORK THAT ENABLES CONSUMERS TO CARRY OUT FINANCIAL TRANSACTIONS WITH ELECTRONIC IMPULSES INSTEAD OF PAPER MONEY OR CHECKS. THE KEY TO THE SYSTEM IS THE DEBIT CARD. UNLIKE CREDIT CARDS, WHICH ALLOW ONE TO BUY NOW AGAINST FUTURE INCOME, DEBIT CARDS USUALLY ASSUME THAT ONE HAS MONEY IN AN ACCOUNT AT THE TIME A PURCHASE OR A WITHDRAWAL IS MADE. IN ADDITION TO THE EXAMPLES NOTED ABOVE, EFT SYSTEMS INCLUDE POINT-OF-SALE SYSTEMS (E.G., CHECK AND CREDIT AUTHORIZATION SYSTEMS) AND AUTOMATED CLEARING HOUSES -- ASSOCIATIONS OF FINANCIAL INSTITUTIONS THAT ENABLE THEIR MEMBERS TO TRANSFER FUNDS AMONG THEMSELVES AUTOMATICALLY. SUCH SYSTEMS CAN MAKE BANKING MORE CONVENIENT FOR THE CONSUMER AND OFFER CERTAIN ADVANTAGES TO BANKS. SOME CONSUMERS HAVE BEEN WARY OF THE SYSTEMS, AND THE INDUSTRY HAS DEVISED A NUMBER OF STRATEGIES TO MARKET ELECTRONIC BANKING. PROBLEMS THAT THE SYSTEMS MAY POSE FOR CONSUMERS RELATE TO PRIVACY, SECURITY, ERROR CORRECTION, DOCUMENTATION OF TRANSFERS, DISCLOSURE, AND STOP-PAYMENT RIGHTS. HOWEVER, THE BIGGEST PROBLEM MAY BE THE EFFECT OF ELECTRONIC BANKING ON PEOPLE'S SPENDING HABITS. (LKM)