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One of the easiest and most convenient ways to send and receive money in Canada is by Interac e-Transfer. In this guide, we’re sharing how e-transfers work, what to be aware of and how to send and receive money this way.
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An Interac e-Transfer is an electronic method of sending money from your bank account to someone else. E-transfers can be sent either via your financial institution’s online platform or its mobile app and take just a few seconds to complete.
Interac e-Transfers were developed by Interac—Canada’s interbank payment network that provides the infrastructure for the country’s debit card system. They were first introduced to the general public in 2003. and are considered to be one of the first digital peer-to-peer methods of payment. You can use Interac e-Transfers to send money to anyone in Canada who has an account with a participating financial institution. However, since Interac is a Canadian interbank network, e-transfers are not available outside of the country.
While Interac e-Transfers aren’t accepted as payment inside physical retailers, they can be incredibly handy in many other areas of day-to-day life, including the following:
If you are set up for auto deposit the money will go directly into your account. If not, you will receive a link via text message or email. Click through the link, answer the security question and choose which bank account you want to deposit the funds into. In the unlikely event you do not see your bank listed as an option, it means it does not offer the service.
To cancel a transfer you’ve sent, access your online bank account and find your transaction history. Select the Interac e-Transfer transaction you wish to cancel and use the cancel option provided. Note that your bank or financial institution may charge a fee for cancelling an e-transfer.
The cost of an Interac e-Transfer depends on your financial institution. Some banks, especially online banks, are quick to offer free and unlimited e-transfers.
Other banks charge for the service and the rates can vary across the country. Fees usually range from $0.50 to $1.50 depending on your bank, the amount of money transferred, or the type of account you are using (business or personal).
More than 250 financial institutions across Canada partner with Interac and allow you to use e-Transfers. However, not all of them offer e-transfer for free. You can find the full list of Interac partner institutions that offer e-transfers (free or not) here.
If you are looking for a bank that offers free Interac e-Transfers, here are a few:
Some banks may offer you a select number of free Interac e-Transfers while some will offer unlimited free e-Transfers.
Interac e-Transfers have a number of benefits:
Interac e-Transfers are very handy but there are some detriments to the service you should be aware of:
Interac e-Transfers and Venmo are similar in that they are both peer-to-peer methods of transferring money. However, the same way in which Interac is a Canadian service that requires a Canadian bank account, Venmo is an American service that requires a U.S. bank account. To be able to use Venmo, you must be physically located in the U.S., have a U.S. phone number that you can receive text messages from and be at least 18 years old.
Another popular money transfer service is PayPal. Like Interac e-Transfer, PayPal allows you to send money online safely and keeps a record of your transactions. PayPal also allows you to shop online as an alternative to using a credit card or other means of payment.
PayPal transfers can be free, but may also come with a fee. This is especially true if the sender pays by credit card or if you want to send money internationally, which, unlike Interac e-Transfers, you can do with PayPal. While PayPal is quick, it’s not quite as instant as Interac e-Transfers. However, a benefit to Payal is that payments can be disputed and reimbursed, which isn’t possible with an Interac e-Transfer.
Both Paypal and Interac e-Transfers are handy tools but they are often used in different situations. If you are sending money to a family member or friend within Canada, then an Interac e-Transfer is the easiest option. If you are purchasing something online or looking to send money abroad, PayPal is the better choice.
Interac e-transfers are only available in Canada for individuals who have Interac-partnered bank accounts (most of them). So, no you cannot use Interac e-Transfer in the U.S. That being said, Interac does have a collaboration with Mastercard and Western Union to allow Canadians to send International Transfers. The process is quite similar to an e-transfer, however, the fees for this can be quite high, so it is worth looking into other, perhaps cheaper, alternatives if you are looking to send money to the U.S. or other countries.
You can use an Interac e-Transfer in many different ways. Namely, to send money to other individuals. Think: splitting a large dinner bill with friends when you don’t have cash on hand or purchasing an item on Kijiji. You can also use it to pay small businesses, usually that offers services. For instance, a hairdresser that works from their home might not have a debit or credit payment method and prefers e-transfer for bookkeeping purposes. You can also use e-transfers for large group events. For example, if one friend booked a vacation package on their credit card for everyone and then the participating friends e-transferred them how much they each owed. Sometimes, landlords accept e-transfers rather than cheques for rent payments, too.
In order to give or receive an e-transfer, you simply need the other party’s name and email address or phone number. In some cases, you may need an agreed upon password to accept the e-transfer.
It depends on your financial institution. Some banks offer it as a free service without limits, while others charge a fee for every e-transfer. If you have a banking package, you may get a certain number of included e-transfers per month and a charge if you surpass this amount.
Most of the time, you’ll receive your e-transfer within minutes. However, sometimes there is a delay of up to 30 minutes.
Depending on your bank, you may have a transaction limit of how much money you can send in an e-transfer at once and how much you can send total per day. Many banks cap this at $3,000 per transaction. However, Interac e-Transfer also offers this service for businesses, with a higher limit of up to $25,000.
Interac e-Transfers are an incredibly handy financial tool for Canadians. They are fast, easy, and efficient. They allow you to keep a record of your transaction and can be used for a variety of reasons. Just be mindful of your account allowances. While some bank accounts will include unlimited e-transfers there are some that have transaction limits on e-transfers and will charge you if you go over.
There are a number of common scams that use e-transfer to quickly secure money from their victims. These scams involve everything from income taxes to romance to car sales, so always be cautious when it comes to these subjects and any request for money.
In order to not fall victim to these, use caution when it comes to sending or receiving money. Once a recipient has accepted the money from an e-transfer, the transaction cannot be reversed. Here are some tips from Interac e-Transfer’s website.
In order to send or receive money, you’ll need to provide your email address so you can receive the notification of the transfer and accept it. You can also get notified via a text message.
You can register for autodeposit, which enables any e-transfers sent to you to be deposited into your account automatically, no need to get a password from the sender.
