A way to send money via online banking, e-Transfers are simple and secure. They use the safeguards of your banking system and the closed access of both phone and email when you send the money. The process is simple, regardless of your experience level with online banking.
How Do e-Transfers Work?
To send an e-Transfer, there are a few pieces of information you need beforehand. First, you need access to your bank account online. All major banks offer this service. You need to know the amount to send, and the contact details of the recipient (cell phone number or email).
Setting up an e-Transfer is straightforward. Navigate to the Interac e-Transfer section of your online banking. You will be prompted to create a new recipient (the person you want to send money to). You can give them a nickname if you plan to use it multiple times. You will be asked to provide a mode of contact, either through phone or email. You’ll need to indicate how much money you want to send and choose the account the money should be withdrawn from. The final step is creating a security question and answer. This adds a level of security since the recipient can’t deposit the money without the proper security answer.
Find out how to transfer money to a bank account?
After you send the money, the recipient will receive a notification on the chosen communication platform (text message or email). Keep in mind that this can take up to 30 minutes to go through. They click on the notification and navigate to their preferred online banking platform. The recipient is prompted to answer the security question. Once they input the correct answer, the bank inquiries which account to deposit it into and the opportunity to leave a message to the sender.
Once the money is deposited, the sender gets a notification that the funds have been received along with any message from the sender. The transfer is officially complete. Bear in mind that, while the communication goes through email or phone, the transfer itself does not. The email is a method of relaying the information, not the funds. E-Transfers are highly secure; and, so long as you communicate well and use reliable security questions, there is little concern.
Need to send money internationally? Check out the best money transfer providers in Canada.
In short, no, you cannot reverse an e-Transfer after it’s been deposited. However, if you realize that you sent the deposit in error, you can cancel the transaction before it is accepted by the recipient. You can do this either through online banking or by contacting your financial institution directly.
If there is an issue, such as overpayment to a vendor, the best route is to contact the recipient directly. Note your mistake and request that they cancel the transfer on their end. Especially when you’re dealing with a long-term client or vendor, there is usually no issue. The recipient is able to cancel it on their end and you can reissue the transfer in the correct amount.
If the amount isn’t yet deposited, you can cancel the e-Transfer through your banking portal. Keep in mind that there are different procedures for each financial institution. If you are in doubt, reach out to the help section of your bank or call them directly.
Generally speaking, you should navigate to your online banking and go to your transaction history. Usually, the bank will combine your payments and transactions into the same section. From there, you simply click on the transfer you made. Once you click on the transaction, select cancel.
Though there may be a nominal administrative fee for cancelling an e-Transfer, depending on the situation, it can be well worth the investment. It is important to take these steps immediately upon becoming aware of the issue. This gives you the best likelihood of cancelling the transfer before it is received.
Find out if you can transfer money from your credit card to your bank account.
| TD | $5 (unless it is cancelled within 45 minutes of sending) |
| RBC | $0 or $5 (a $5 fee will be charged if do not cancel within 15 days after being notified of its expiry) |
| Scotiabank | $0 |
| BMO | $5 ( if you cancel before 12 am on the day you sent it, you will not be charged a fee) |
| CIBC | $3.50 |
Worried about bank fees? Here are some bank fees to look out for.
Depending on the bank you’re banking with, the Interac e-Transfer limits will vary. Below is a list of the Interac e-Transfer limits by the financial institution:
| Interac e-Transfer Limit at TD | – $3,000 per e-Transfer every 24 hours – $10,000 per 7 days – $20,000 per 30 days |
| Interac e-Transfer Limit at RBC | Limits are based on the client’s card’s daily access limit. |
| Interac e-Transfer Limit at Scotiabank | Limits are based on the client’s limit set in their client card. |
| Interac e-Transfer Limit at BMO | – $2,500 – $3,000 every 24 hours – $10,000 per 7 days – $20,000 per 30 days |
| Interac e-Transfer Limit at CIBC | – $3,000 per 24 hours – $10,000 per 7 days – $30,000 per 30 days |
| Interac e-Transfer Limit at Simplii Financial | – $3,000 per 24 hours – $10,000 per 7 days – $30,000 per 30 days |
| Interac e-Transfer Limit at EQ Bank Financial | – $3,000 per 24 hours – $10,000 per 7 days – $20,000 per 30 days |
| Interac e-Transfer Limit at Tangerine | – $3,000 per day – $10,000 per week – $20,000 per month |
There are a few basic steps you can take to prevent issues with e-Transfers including
Some recipients have Autodeposit set up. By enabling Autodeposit, it removes the need for a security question and deposits the funds right into their account. In these cases, you can’t cancel the transaction and must contact the recipient directly.
It does, however, make the payment process more secure. Autodeposit helps prevent e-Transfer frauds because it skips the email step of an e-Transfer and directly sends the funds to the chosen account.
If you are going to use a password, make it a strong one, not something that is easy to guess. Consider using something specific to the relationship between you and the recipient. For added protection, use a different question each time.
With the fast pace of technology, it is important to take pause and consider whether those with whom you’re financially dealing are trustworthy. Be sure you are dealing with someone you trust to be ethical in the event of an issue. This alone can prevent a lot of issues down the line.
Learn how to pay your bills by setting up automatic payments.
Interact e-Transfer FAQs
How long does it take to receive an e-Transfer?
It can take up to 30 minutes for a recipient to receive either an email or a text message notifying them that they can deposit the money.What happens if you send an e-Transfer to the wrong person?
If you send a transfer to the wrong person, check the status of the transfer right away. If it is still pending, you can cancel the transfer. But unfortunately, once the money had been deposited, there is no way to cancel the transfer. You will need to get in contact with the recipient directly.I sent an e-Transfer to an invalid emails address, what do I do?
If you received a notification that the email address you provided was invalid, you can readdress and resend the transfer. To re-address and resend a transfer, follow these steps:What should I do if I don’t know the answer to the security question for an e-Transfer?
Security questions should be unique to the sender and the recipient, this makes them more secure. If you don’t know the answer to a security question, you should get in contact with the sender. What happens to my e-Transfer if the receiver does not accept it?
Generally, if the receiver declines the e-transfer, the sender will have the option to cancel the transaction or resend the payment. Similarly, if the receiver simply does not accept the payment within 30 days of receiving the e-transfer, it will expire. The sender will be notified and will have to cancel the e-transfer. Most banks will return the funds and charge the sender a small fee if they do not cancel the e-transfer within 15 days of being notified of the e-transfer’s expiry.
Though there is a bit of a learning curve to online transfers, convenience and efficiency are incomparable. So long as you are diligent, take your time, and do your research beforehand, it can make your financial transactions much smoother.
Rating of 4/5 based on 23 votes.
Corrina Murdoch has been a dedicated freelance writer and editor for several years. With an academic background in the sciences and a penchant for mathematics, she seeks to provide readers with accurate, reliable information on important topics. Working as a print journalist for several years, Corrina expanded her reach into the digital sphere to help more people gain insight into the realm of finances. When she's not writing, you can find Corrina swimming and spending time with family.
Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Frank Mortgage is Canada’s one-stop shop for mortgages. Get up to $1,500 cash back on your mortgage.
Great unsecured credit card for customers currently in, or recently discharged from, a consumer proposal or bankruptcy
Earn an average 5%¹ cashback at thousands of partners and at least 0.5%² cashback guaranteed with Neo.
KOHO’s Credit Building Program helps you build a better credit history with easy to manage payments for just $10/month.
All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.
When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.
Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.
