Interac e-Transfers are Canada’s fast and free domestic money transfer service.
Some banks charge small fees for facilitating a transfer.
But it’s still a very cheap and fast way to send money in Canada.
How Interac e-Transfer Works
You don’t need a separate app or account to make an e-Transfer.
The service is offered through most banks in Canada.
All you need is a bank account and a mobile banking app.
Or, you can just log in to your bank account on your browser.
Once you’re inside your bank account online or on an app, click “Interac e-Transfer”.
You can find this option labelled as such, or some banks will include the option under “send money,” “email money,” or a similar option.
Interac e-Transfers function the same way regardless of your bank.
The only differences between banks are service fees and service times.
Some banks facilitate transfers almost instantly and don’t charge a fee.
Others go the opposite way.
For example, CIBC charges $1.50 to send an e-Transfer almost instantly (the fees are waived for certain accounts).
Tangerine doesn’t charge a fee, but it may take a couple of hours for the transfer to be completed.
Each bank offers its own infrastructure but receiving e-Transfers is normally free.
From the Interac e-Transfer option inside your online or mobile banking, you can opt to make a transfer.
You simply need to set up a contact, then select them from a drop-down menu.
Recipients simply require a name and a transfer medium.
e-Transfers are completed via email or phone.
When you send an e-Transfer, the recipient will be alerted by phone, by email, or both.
They can then complete the transfer by completing the instructions they’ll receive by text or email.
They will need to input the money’s destination by logging into their bank account, and they’ll need the security code which you (the sender) set up.
Once your recipient has received a text or email, they can immediately start accepting the transfer.
Once they’ve logged into their bank account, selected an account, and typed in the security code, the money will be deposited into their account.
Interac e-Transfers are very fast and cheap.
Once you send the money, it will be withdrawn from your account and held by Interac until the recipient accepts it.
If the recipient never accepts the transfer, Interac will reverse the transfer and send it back to you.
Interac e-Transfer Limits
This is another area where banks facilitating the service set their own limits.
Interac plainly states the same on their website, as they do not set transfer limits.
Banks normally establish limits of a few thousand dollars by default.
However, transfer limits are normally not set in stone.
You can always call your local branch to request a transfer limit increase.
Banks set Interac e-Transfer limits for specified periods.
Some set daily, weekly, and monthly limits.
For example, a limit structure might be $500 per day, $2,000 per week, and $5,000 per month.
To find out your current limits, contact your bank.
If you find out your limit and want to change it, you can simply ask them for a change.
How to Cancel an Interac e-Transfer
You can cancel an e-Transfer that you’ve sent, but only before the recipient deposits it.
To cancel an e-Transfer, log into your online or mobile banking.
Go to the transaction or payment history section.
You need to find the e-Transfer that you sent.
You must then use the cancel function that your bank provides.
Some banks charge a cancellation fee for cancelled e-Transfers.
