Interac e-Transfers have been a P2P payments staple in Canada for years. They offer fast and secure payments, but low transaction limits, settlement that isn\u2019t quite instant and geographical limitations mean that e-Transfers are not suitable for all use cases.<\/p>
It\u2019s these limitations that the Real-Time Rail is designed to overcome.<\/p>
The Real-Time Rail is Canada\u2019s instant payments system that is currently being developed by Payments Canada. It\u2019s designed to allow Canadians to send and receive payments that clear and settle in real-time.<\/p>
The RTR isn\u2019t a standalone consumer app, but rather a national infrastructure system to support instant payments. Financial institutions like banks and fintechs will be able to connect to the RTR to facilitate real-time payments for their customers.<\/p>
And the RTR has been a long time coming, having been first announced in 2016 and not expected to launch in full until 2027.<\/p>
The RTR supports single credit transfer push payments. When a payment is initiated, the Real-Time Rail exchanges several messages between the sending and receiving financial institutions about the exchange and settlement of funds\u2014and all of that happens in a matter of seconds. The funds are immediately available to the recipient, and both the sender and receiver get the security of real-time confirmation that the payment has gone through.<\/p>
The Real-Time Rail will be available 24\/7. That means individuals and businesses can send and receive payments any time, regardless of whether it\u2019s outside of traditional banking hours or even on a public holiday.<\/p>
Another key feature is that real-time payments are data-rich. The RTR uses the ISO 20022 messaging standard, allowing the inclusion of detailed information with each transfer. This allows for faster payment processing and reconciliation, providing improved efficiency for people and businesses.<\/p>
RTR payments are also irrevocable, so transactions are guaranteed and cannot be reversed.<\/p>
Check out the table below for details of some of the key similarities and differences between e-Transfers and the RTR.<\/p>
| <\/th> | Interac e-Transfer<\/th> | RTR<\/th><\/tr><\/thead> | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Who can use<\/td> | Anyone who has an account with a participating financial institution or businesses for transactions of up to $25,000<\/td> | Canadian consumers, businesses, banks, credit unions and payment service providers<\/td><\/tr> | |||||||||
| Speed<\/td> | Typically from a few seconds up to 30 minutes<\/td> | Within seconds<\/td><\/tr> | |||||||||
| Security<\/td> | Encrypted transactions sent over secure bank payment networks, 24\/7 fraud monitoring<\/td> |
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