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The term that refers to external devices such as USB drives used for data transfer is removable media. This designation encompasses various types of storage devices that can be easily connected and disconnected from a computer system. Examples of removable media include USB flash drives, external hard drives, CD/DVDs, and SD cards.

Removable media is significant in data transfer because it allows users to easily move data between different systems without the need for a permanent installation. Such devices are typically portable, which is a key characteristic setting them apart from internal storage mechanisms that are installed directly within the hardware of a computer and are not designed to be easily removed.

In contrast, options like internal storage refer to built-in hardware components of a computer that store data internally, while cloud storage is a method of storing data on remote servers accessed over the internet. Static media, while related to certain types of storage, typically does not reflect the versatility and portability associated with removable devices.