Interac e-Transfer: How does e-Transfer work?

Interac is an interbank network that offers payment solutions for Canadians. Its e-Transfer service makes it easy to send and receive fast electronic payments across Canada. But how do e-Transfers work, how long do they take, and are they safe? Keep reading to find out.

How does e-Transfer work?

An e-Transfer allows you to move money between bank accounts. But unlike a traditional bank transfer, where you need to provide bank account numbers and details, all you need to send an e-Transfer is your recipient’s email address or phone number.

It’s easy to send an e-Transfer from your bank’s online or mobile banking platform. Just log in to your account, select e-Transfers, provide your recipient’s name and email address/phone number, then enter the amount of money you want to send.

Your recipient needs to have a bank account with a participating financial institution. They will then receive a notification about the e-Transfer, and the funds can be deposited into their account almost instantly.

Canadian bank e-Transfer limits

The amount you can send per e-Transfer and other transaction limits vary depending on your bank and your account. Check out the table below for e-Transfer limits and fees across a selection of popular Canadian bank chequing accounts.

What is Interac e-Transfer?

Interac e-Transfer is an electronic payment method that allows you to send fast digital transfers to other people.

Launched in 2003, Interac e-Transfers let you send money to another person’s email address or phone number. They’re sometimes also referred to as email money transfers, and they allow you to send digital payments by providing just a few basic details about your recipient.

An Interac e-Transfer is a quick and secure payment method that can be used for a wide range of everyday transactions, such as:

• Sending money to friends and family
• Splitting restaurant bills
• Paying rent
• Paying utility bills
• Buying items through online marketplaces

How to send an e-Transfer

1. Log in. Enter your details to log in to your bank’s online banking platform or mobile app.
2. Choose e-Transfer. Navigate to the Send Money section of your account and select an e-Transfer.
3. Select the sending account. Choose the account you want to send money from.
4. Enter your recipient’s details. If this is the first time you’re sending money to someone, you’ll need to enter their name, email address and/or mobile number. In future you will be able to select the recipient’s name from your list of contacts.
5. Set up a security question. If the person you’re sending to hasn’t registered for Autodeposit, you will now have to create a security question. Your recipient will need to answer this question correctly to complete the transaction. But if your recipient has registered for Autodeposit, you can skip this step.
6. Enter the amount you’re sending. Check your bank’s limit per e-Transfer to make sure you won’t exceed it.
7. Review and send. Confirm the details of your transaction, add a memo if you wish and then send your transfer.

How to e-Transfer to email vs a phone

The process for sending an e-Transfer to an email address or a mobile phone number is largely the same. When you add a recipient, you can provide just their email or just their phone number, or you can provide both pieces of contact information.

Then it’s simply a matter of setting up a security question (if required), entering the amount you want to send and confirming the details of your transaction.

How to deposit an e-Transfer

If you’re receiving an e-Transfer, the simplest way to deposit the funds into your account is to set up Autodeposit (more on that in a second). But if you want to deposit the transfer manually, here’s what you need to do:

1. Get a notification. You will receive an email or SMS notification about the e-Transfer. If you get an email, it will include the sender’s full name and notify@payments.interac.ca in the email field.
2. Click the link. Click the link in your notification to be taken to your bank’s online banking portal.
3. Follow the instructions. Follow the prompts to complete the e-Transfer. You’ll also need to answer the security question set by the sender.
4. Deposit the funds. Confirm the transfer to deposit the money into your bank account.

How does Interac e-Transfer Autodeposit work?

e-Transfer Autodeposit makes it even simpler to receive money. To set it up, sign in to online banking, navigate to the Interac e-Transfer section and click on “Autodeposit”. Next, enter your email address and phone number, and select the account you want funds Autodeposited into. You’ll be sent an email or SMS prompting you to confirm your registration—you can do so by clicking “Complete registration”.

Once Autodeposit is set up, you don’t need to answer a security question or jump through any hoops to get your money. The funds will be automatically deposited into your bank account, and you’ll receive a notification when they arrive.

How to cancel an e-Transfer

If your recipient hasn’t registered for Autodeposit, or if they haven’t yet deposited the e-Transfer, you can cancel it. Here’s how.

1. Log in. Log into online banking or your mobile banking app.
2. Find the transaction. Go to your e-Transfer history and select the transaction you want to cancel.
3. Cancel the transfer. Click or tap the “Cancel transfer” button.
4. Select your account. Choose which account you want the cancelled transfer to be deposited into and then complete the cancellation. Please note that your bank may charge a fee to cancel an e-Transfer.

Can you decline to accept an e-Transfer?

If you have Autodeposit set up, it’s not possible to decline an e-Transfer. But you can decline an e-Transfer if you have not registered for Autodeposit.

To do so, you will need to click the link in the transfer notification and log into online or mobile banking. After answering the security question, click or tap on the button to decline the e-Transfer. Alternatively, if you do not deposit the transfer within 30 days, the sender will receive a notification informing them that it has expired.

Can I request an e-Transfer from someone else?

Yes, you can request a payment from someone else with Interac e-Transfer Request Money. Just follow these steps to cancel an e-Transfer:

1. Log in. Log in to online or mobile banking.
2. Set up a request. Navigate to the e-Transfer section and tap or click on “Request money”.
3. Choose who to request money from. If the person you want to request money from is already in your list of contacts, you will simply need to select them. If not, you’ll need to provide their name, email address and/or mobile number.
4. Enter an amount. Specify the amount you want them to transfer.
5. Select an account. Choose which account you want the e-Transfer to be sent to.
6. Add a message (optional). Provide a message or an invoice number to the sender if needed.
7. Send the request. Review and confirm all details before sending your e-Transfer request.

How long does e-Transfer take?

Interac e-Transfers can be completed almost instantly, but depending on the bank, it may take up to 30 minutes for the funds to arrive.

You (and your recipients) can speed up the process by registering for Autodeposit. This ensures that funds are automatically deposited into the recipient’s account, removing the need to click on the transaction notification and answer a security question.

Are e-Transfers safe?

Yes, e-Transfers are a safe and secure payment method. Transfers are sent over secure bank payment networks and all transactions are encrypted. 24/7 monitoring also helps to protect you against fraud, and no matter which end of the transaction you’re on, the other person can never access your bank account details.

But because e-Transfers cannot be reversed, they are a popular target for scammers. A common trick is phishing, where scammers pretend to be a reputable company or government authority and claim that you have an unpaid bill. You can pay the bill off quickly with an e-Transfer, but once you send the payment the scammers take off with your money.

That’s why it’s important to remember a few basic e-Transfer security tips:

• Be wary of any unsolicited contact regarding an e-Transfer.
• Always double check your recipient’s name and email address/phone number before sending an e-Transfer.
• Set up the Autodeposit feature.
• Ensure that your PC and mobile device have the latest software and antivirus protection installed.
• Don’t accept an e-Transfer from an unknown sender.

EFT vs e-Transfer: What’s the difference?

An electronic funds transfer (EFT) is any electronic payment method that lets you send money from one bank account to another. EFT is an umbrella term that can be used to refer to a wide range of transactions, including wire transfers, direct deposits, point-of-sale purchases and e-Transfers.

That’s right—an e-Transfer is a type of EFT, one that is only available in Canada.

Benefits of using e-Transfers

• Fast payments. e-Transfers let you send money instantly, so they’re extremely convenient for things like splitting bills, paying your rent or sending money to friends and family.
• Digital. e-Transfers are digital payments, so there’s no need to use old-fashioned payment methods like cash or cheques that require you to hand over paper in person.
• Secure. With bank-grade security measures like encryption and fraud monitoring, plus the use of existing secure payment networks, e-Transfers provide a safe way to send money.
• Easy to use. It’s quick and easy to send money from online or mobile banking, and you simply need to provide your recipient’s name, email address and/or mobile number.
• Fee-free. Many financial institutions across Canada now allow you to send e-Transfers without paying any fees.

Drawbacks of using e-Transfers

• Irreversible. Once the money has been deposited, e-Transfers cannot be reversed, so you need to be sure you’re sending money to the right person.
• Risk of fraud and scams. e-Transfers are a common target for scammers, so you’ll need to use sensible security measures to protect yourself against fraud.
• Transfer limits. As you can see in the table higher up the page, there are limits to the amount you can send by e-Transfer per transaction, per day, per week and per month. This makes them unsuitable for large payments.
• Some banks charge fees. Some chequing accounts require you to pay a fee of around $1 – $1.50 to send an e-Transfer. Other accounts will only allow a limited number of free e-Transfers per month.
• Limited international use. While Interac does offer some international payment options through participating financial institutions, you can’t send international e-Transfers.

Bottom line

Interac e-Transfers offer a fast and secure way to send money to other people. It’s easy to send an e-Transfer via online or mobile banking, but just make sure you’re aware of your bank’s fees and limits before sending any funds.

Frequently asked questions about e-Transfers

• Can e-Transfers be reversed?

  No, e-Transfers can't be reversed once the recipient has deposited the funds in their bank account. If the recipient has registered for Autodeposit, this will happen straight away. But if the recipient has not set up Autodeposit and has not yet accepted the e-Transfer, you can cancel it through your bank's online or mobile banking platform.

• Does an Interac e-Transfer automatically get returned to the sender if the recipient doesn't deposit it?

  If the recipient does not deposit the e-Transfer in their bank account within 30 days, the sender will receive a notification informing them that the transfer has been declined. This notification will also provide the sender with the steps they need to take to reclaim the money.

• Can you send an Interac e-Transfer internationally?

  No, e-Transfers can be sent within Canada only. Interac does offer international transfer options through partnerships with participating financial institutions—National Bank customers can send money to over 20 countries with International Transfer by Mastercard and Interac, while customers at BMO and a small selection of credit unions can send Western Union money transfers via Interac e-Transfer. However, these payment options work differently to regular e-Transfers.

  If you want to send money to the USA or another international destination, you can send a bank transfer directly from your account. But if you want to get a better exchange rate and lower fees, it's worth checking out an online international money transfer service like Wise, Xe or Remitly.

• How much does it cost to send an e-Transfer?

  It depends on your bank and the type of account you have. Many chequing accounts now offer free e-Transfers, but not all do. Some accounts will charge a fee of around $1 – $1.50 for each e-Transfer you send, while others will only support a limited number of free e-Transfers per month.

• What do I need to use e-Transfer?

  To use e-Transfer you will need a Canadian bank account at a participating financial institution, access to online and mobile banking, and an email address and Canadian mobile phone number. You will also need the name, mobile phone number and/or email address of anyone you want to send money to.

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Written by

Tim Falk

Writer

Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio

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