Electronic Funds Transfer explained — processing times, limits, fees, and the difference between EFT, Interac e-Transfer, and wire transfers
EFT (Electronic Funds Transfer) is a broad term for any electronic movement of money between bank accounts in Canada. It encompasses several types of electronic payments processed through Canada's payment infrastructure operated by Payments Canada.
Employer payroll, CRA tax refunds, CPP/OAS, CCB, EI — money being deposited TO your account
Insurance premiums, mortgage payments, utility bills, subscriptions — regular pulls FROM your account
B2B supplier payments, business payroll processing, large corporate transfers
GST/HST remittances, government benefit distributions, tax authority payments
| Type | Common Use | Speed | Limit | Fee | International? |
|---|---|---|---|---|---|
| EFT (ACH/PAD) | Payroll, bills, subscriptions | 1–3 business days | Varies by bank | Usually free | No (domestic only) |
| Interac e-Transfer | Person-to-person, small business | Minutes to hours | $3,000–$100/day | $0–$1.50 | No (domestic only) |
| Domestic Wire | Large amounts, real estate, legal | Same day to 1 day | Unlimited | $25–$45 | No |
| SWIFT Wire | International payments | 1–5 days | Unlimited | $25–$50+ | Yes |
| Interac Bulk/Business | Business payroll, large EFT batches | 1 business day | High limits | Varies | No |
When you authorize a company to pull money from your account (e.g., for your phone bill or gym membership), this is a Pre-Authorized Debit (PAD):
| Payment Type | Processing Time | Cut-off Time |
|---|---|---|
| Payroll direct deposit | Next business day | Submitted 2 days before pay date |
| CRA direct deposit | Next business day after CRA processes | N/A |
| Pre-authorized debit (PAD) | 1–3 business days | Varies by institution |
| Interac e-Transfer sent | Instant to 30 minutes | 24/7 |
| Interac e-Transfer received | Usually instant with Autodeposit | 24/7 |
| Business EFT batch | 1 business day | 2–5 PM ET typically |
KOHO supports direct deposit and Interac e-Transfer. Zero fees, cashback. Code: 45ET55JSYA.
Open KOHO — Code: 45ET55JSYAEFT (Electronic Funds Transfer) is a general term for electronic payments, including payroll deposits, pre-authorized bill payments, and batch business payments. These are processed through Payments Canada's clearing system and typically take 1–3 business days. Interac e-Transfer is a specific product by Interac Corp that enables near-instant person-to-person transfers through your banking app using an email address or phone number. They're both "electronic," but Interac e-Transfer is faster and uses different technology.
Standard EFT transfers (payroll direct deposit, pre-authorized debits) take 1–3 business days. Payroll typically arrives on the morning of the pay date if processed properly. Interac e-Transfer arrives in minutes to hours. SWIFT international wire transfers take 1–5 business days depending on the destination country and correspondent banks involved.
Pre-Authorized Debits (PADs) can be reversed within 90 days by the account holder if they were unauthorized. Contact your bank to dispute an unauthorized PAD — your bank will reverse the payment and investigate. Payroll direct deposits and other credits are generally not reversible once received. Interac e-Transfers, once accepted, cannot be reversed.
NSF stands for Non-Sufficient Funds. When a pre-authorized debit or EFT payment is attempted and your account doesn't have enough money to cover it, the payment fails and you're charged an NSF fee (typically $45–$48 at Canadian banks). The payee may also charge a returned payment fee. To avoid NSF, ensure sufficient funds are in your account before any scheduled EFT pull dates.
Yes. KOHO supports both direct deposit (payroll, CRA, government benefits) and Interac e-Transfer. KOHO's banking coordinates (institution 815, transit number, account number — found in the app) can be provided for any direct deposit or EFT authorization. KOHO does not charge NSF fees in the same way as traditional banks.