In Mexico, the SAT (Tax Administration Service) maintains an official catalog that classifies the valid ways to send and receive money. One of them is the Electronic Funds Transfer (TEF), identified under the payment method code 03.

While many people today are more familiar with the SPEI system, TEF remains a useful alternative—especially for scheduled transactions that require control and fiscal traceability.

That’s why it’s important to understand what TEF means in banking and what its main advantages are. In this post, we explain that along with the differences it has compared to the SPEI network.

Electronic Funds Transfer: What It Is and How It Works in Mexico

What Is an Electronic Funds Transfer (TEF)?

TEF is one of the payment methods in Mexico used to transfer money between different banking institutions through electronic means. In a fiscal context, it’s often referred to as SAT Electronic Funds Transfer, as it corresponds to payment method code 03.

TEFs are operated by Cecoban, S.A. de C.V., a company responsible for coordinating transfers between authorized and certified banks. It’s a safe and effective alternative for Mexicans to move funds from one bank to another.

The TEF service is subject to fees set by Cecoban.

How Does a TEF Work?

The process begins when the transaction is initiated through online banking, a physical branch, or a corporate platform. The user provides the necessary information for the bank transfer and submits the request.

As mentioned earlier, Cecoban is the authorized entity that acts as an intermediary between financial institutions. So when a bank receives the transfer request, it withdraws the funds from the sender’s account and notifies Cecoban.

Upon receiving the request, Cecoban processes the transaction and forwards the information to the recipient bank so the money can be credited to the beneficiary.

How to Make an Electronic Funds Transfer

To make a wire transfer in Mexico, the fundamental thing is to have all the information required by the bank. The rest is very simple.

Make sure you have:

• Official identification.

• Recipient’s details: full name, banking information, and CLABE.

• Enough balance in your account to cover the amount and service fee

Then follow these steps:

1. Log in to your online banking or mobile app.

2. Find the section for TEF transfers.

3. Enter the required data and double-check for any errors.

4. Authorize the operation using your security method (digital signature, token, or SMS code).

5. Once completed, you can check the status of the transfer in your transactions or account history

The TEF system is reliable and is often used for scheduled or business transactions.

TEF in Mexico: Processing Time

How long does a TEF transfer take?

This type of bank transaction is not immediate. The money typically appears in the recipient’s account the next business day at the earliest. However, users can also schedule the transfer, in which case it may take up to two business days.

So, the processing time depends on the date you select and the operating hours of your financial institution. That’s why it’s useful for payments that aren’t urgent but do require clear records.

Differences Between SPEI and TEF

Both SPEI and TEF are payment methods that allow electronic money transfers.

So what’s the difference?

The key difference is that SPEI transfers money in seconds—most are completed in under a minute—while TEF transactions are processed in a minimum of one business day or on a scheduled date.

Here’s a simple comparison:

NOTE: Both payment methods are regulated by the Bank of Mexico.

Advantages of Electronic Funds Transfers

Electronic Funds Transfers offer multiple benefits compared to cash payments, checks, or in-person deposits.

Here are some of the main advantages:

• As an automated system, it reduces fees and eliminates costs associated with paperwork or handling physical money.

• Lets you transfer funds between banks without visiting a branch or standing in line.

• Minimizes the risk of loss, theft, or fraud, since there’s no cash or printed documents involved.

• Each transfer is documented, making it easier for accounting and eliminating the need to re-enter data for recurring payments.

• You can schedule recurring transfers without having to authorize them each time.

• The process is easy and accessible from your phone or computer.

In short, TEF combines convenience, security, and control in one mechanism. Plus, SAT Electronic Funds Transfers are especially useful if you need to issue an electronic invoice.

Examples of Electronic Funds Transfers

TEFs are essential tools for managing payments between bank accounts in Mexico. They can be used both personally and professionally in various scenarios.

Common TEF examples:

• Payroll payments. Used by companies to schedule weekly or biweekly payments to employees’ accounts at different banks.

• Supplier payments. Businesses often use TEFs to pay suppliers who bank with different institutions, scheduling the payment for a specific date.

• Professional service payments. When a self-employed person pays a consultant or freelancer, TEFs are often the preferred method.

• Fund disbursements in public or private institutions. Government agencies or universities use TEFs to make mass payments like scholarships, subsidies, or refunds.

• Transfers between your own accounts at different banks. You can move money from your BBVA account to your Banorte account with a scheduled date.

Even though TEF processing times aren’t as fast as SPEI, it offers many benefits—especially in terms of traceability, formality, and tax compliance. However, for international transfers, this is not the right method, as TEFs are limited to domestic banking movements.

For that kind of operation, DolarApp is a more effective solution for sending or receiving money abroad. Plus, you’ll do it in digital dollars with low fees—just 3 USDc per transaction, no matter the amount.