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EFT Transfer Canada 2025

Electronic Funds Transfer explained — processing times, limits, fees, and the difference between EFT, Interac e-Transfer, and wire transfers

What is EFT (Electronic Funds Transfer) in Canada?

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.

Direct Deposit (Credits)

Employer payroll, CRA tax refunds, CPP/OAS, CCB, EI — money being deposited TO your account

Pre-Authorized Debit (PAD)

Insurance premiums, mortgage payments, utility bills, subscriptions — regular pulls FROM your account

Business Payments

B2B supplier payments, business payroll processing, large corporate transfers

Government Payments

GST/HST remittances, government benefit distributions, tax authority payments

Note on terminology: In everyday Canadian usage, "EFT" often refers specifically to pre-authorized debit payments set up for regular bills. It's different from Interac e-Transfer (which is for person-to-person payments through your bank app) and from SWIFT wire transfers (for international payments).

EFT vs. Interac e-Transfer vs. Wire Transfer

TypeCommon UseSpeedLimitFeeInternational?
EFT (ACH/PAD)Payroll, bills, subscriptions1–3 business daysVaries by bankUsually freeNo (domestic only)
Interac e-TransferPerson-to-person, small businessMinutes to hours$3,000–$100/day$0–$1.50No (domestic only)
Domestic WireLarge amounts, real estate, legalSame day to 1 dayUnlimited$25–$45No
SWIFT WireInternational payments1–5 daysUnlimited$25–$50+Yes
Interac Bulk/BusinessBusiness payroll, large EFT batches1 business dayHigh limitsVariesNo

How EFT (Pre-Authorized Debit) Works in Canada

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):

  1. Authorization: You provide your banking coordinates (transit, institution, account numbers) and sign a PAD agreement
  2. Submission: The company submits the payment request to their bank
  3. Processing: Payments Canada processes the batch (typically overnight)
  4. Settlement: Money moves from your account to the payee's account (1–3 business days)
  5. NSF Risk: If insufficient funds, you receive an NSF (Non-Sufficient Funds) charge ($45–$48 at most banks)

EFT Processing Times at Canadian Banks 2025

Payment TypeProcessing TimeCut-off Time
Payroll direct depositNext business daySubmitted 2 days before pay date
CRA direct depositNext business day after CRA processesN/A
Pre-authorized debit (PAD)1–3 business daysVaries by institution
Interac e-Transfer sentInstant to 30 minutes24/7
Interac e-Transfer receivedUsually instant with Autodeposit24/7
Business EFT batch1 business day2–5 PM ET typically

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FAQ

What is the difference between EFT and Interac e-Transfer?

EFT (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.

How long does an EFT transfer take in Canada?

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.

Can EFT transfers be reversed?

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.

What is NSF in relation to EFT?

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.

Does KOHO support EFT and direct deposit?

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.