What Is Interac E-Transfer And How Does It Work?

Q: How Long Does An Interac E-Transfer Payment Take?

Interac e-Transfer payments generally finish instantaneously . This is especially applicable when the recipient has Interac e-Transfer Autodeposit enabled - in such cases, the funds arrive in the receiver's bank account within seconds. In case the recipient does not have Interac e-Transfer Autodeposit and has to answer the security question, the overall transfer time may be slower. But again, this is solely due to the manual step of answering the security question. Once the recipient provides the security answer, the funds are credited into their account right away. Payments and transfers made using Interac e-Transfer finish instantly.

Q: How To Cancel An Interac E-Transfer Payment?

Since Interac e-Transfer payments finish instantly, you cannot cancel the transfer if the recipient has accepted the transfer and their bank account has already been credited with the funds. In case the transfer is still pending, you can generally login into your bank's online banking or mobile app and cancel a pending Interac e-Transfer payment. Note that your bank may charge you a fee to cancel the transfer. Use caution when sending Interac e-Transfer payments since they will clear as soon as the recipient accepts the transfer (or if they have Interac e-Transfer Autodeposit enabled). In many cases, it may be hard to cancel transfers due to the rapid processing speed.

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Published Jun 15, 2023

By RemitFinder

What Is Interac E-Transfer?

How Does Interac E-Transfer Work?

Are There Any Limitations Of Interac E-Transfer?

Conclusion: Is Interac E-Transfer Right For You?

Interac e-Transfer is a popular and convenient way for Canadians to send and receive money electronically. It is a simple and secure service that allows users to transfer funds directly from their bank account to another person's account without needing cash or checks.

Whether you need to split the cost of a dinner bill, pay your rent, or send money to a family member, Interac e-Transfer makes it easy and fast.

But how does Interac e-Transfer work, and what do you need to know to use it seamlessly?

In this article, we will take a closer look at the features of Interac e-Transfer, how to use it, and answer some of the most common questions about this popular payment service in Canada.

What Is Interac E-Transfer?

Interac e-Transfer is an electronic payment system in Canada and has gained significant popularity in the last few years. It enables individuals to electronically transfer funds from their bank accounts to another individual's account by utilizing their email address or mobile phone number.

The efficacy and security of Interac e-Transfer have contributed to its broad adoption as a preferred alternative for prompt monetary transactions among many Canadians.

The Interac e-Transfer system is supported by most major Canadian banks and credit unions, and it allows users to transfer funds between accounts at different financial institutions.

Interac e-Transfer is a convenient and reliable option for Canadians who need to transfer money and make payments quickly and securely within the country.

To use the system, users must have an active online banking account, a valid email address or mobile phone number, and the email address or mobile number of the person to whom they wish to transfer funds. The process is straightforward; users can complete a transfer in just a few minutes.

Additionally, the system uses advanced encryption and multi-factor authentication to ensure that users' financial information is protected at all times.

Who owns Interac E-Transfer?

Interac e-Transfer was conceptualized and launched in 2003 and was initially called Interac Email Money Transfer (EMT) by Acxsys, which was a consortium of several for-profit organizations and non-profit Interac Association.

The latter, i.e., Interac Association, was established in 1984 as a cooperative venture amongst five major Canadian financial institutions that included RBC, CIBC, Scotiabank, TD, and Desjardins. The association's popularity grew rapidly, and by 2010, there were more than 80 financial organizations that became its members.

Till 2018, Acxsys owned the e-Transfer service, and in February 2018, it merged with the Interac Association - the combined entities adopted the new name of Interac Corporation. Since then, Interac e-Transfer continues to be owned and operated by Interac Corporation.

Interac e-Transfer is owned and operated by Interac Corporation, which is the backbone of the Canadian debit card payment network.

Today, Interac has more than 80 members and operates over 59,000 ATMs across Canada. It is headquartered at Royal Bank Plaza in the city of Toronto.

Interac e-Transfer Statistics

Based on a study done by Interac in 2022¹, Interac e-Transfer has witnessed tremendous growth and adoption in Canada. Below are some highlights:

Interac e-Transfer crossed more than 1 billion transactions for the first time in 2022. This represented a 16% YoY increase.
9 out of 10 people in Canada, i.e., 88%, used Interac e-Transfer in the prior 12 months period.
Interac e-Transfer helped Canadians move over CAD 338 billion in the last 12 months from the time of the survey.
49% people indicated that they increased their use of the Interac e-Transfer service.
Interac e-Transfer Request Money service saw increased usage of 126%

Interac e-Transfer has widespread adoption across Canada with about 88% people using its services to move money worth hundreds of billions of Canadian Dollars.

How Does Interac E-Transfer Work?

Interac e-Transfer is an electronic funds transfer service that allows Canadians to send and receive money between bank accounts quickly, easily, and securely.

To make payments and transfers Interac e-Transfer, all you need is the recipient's mobile number or email ID. This is great from a security standpoint as no bank account information needs to be exchanged.

You can send money and payments using Interac e-Transfer using the receiver's mobile number or email ID. There is no need to exchange bank account information.

Below we cover various aspects how to setup Interac e-Transfer, how to use it to send and receive money using this popular service.

How to setup your bank account for Interac e-Transfer?

If you are new to Interac e-Transfer, the first thing you will need to do is to set it up on your bank account. The good news is that it is very quick and easy to do so.

Note that your bank or credit union must be a participant in the Interac e-Transfer payments ecosystem. If your financial institution does not yet support Interac e-Transfer, you cannot use the service to send and receive money and payments.

To enable Interac e-Transfer payments on your bank account, follow the steps below:

Login into your bank account via your bank or credit union's online banking facility or their mobile app.
Look for a menu option called Interac e-Transfer; some banks may also call this Email Money. If in doubt, check with your bank to find the right menu or page to configure Interac e-Transfer setting.
On the Interac e-Transfer setting page, create your profile for the service and configure other settings as appropriate.

Note that these are general instructions that should apply to most banks with minor variations. If you are unable to find the exact place to setup Interac e-Transfer on your account, or have questions, check with your bank.

Once you have correctly setup Interac e-Transfer, you can send and receive payments with it. Let us see how in the next few sections.

How to send money using Interac e-Transfer?

If you want to send money to someone using Interac e-Transfer, the following 2 pre-conditions must be met:

Both you and your recipient must have an account with an Interac e-Transfer participant bank or credit union.
Both you and your recipient must have an email address or a mobile number.

Once you know that the above 2 requirements are satisfied, follow the below steps to send money to someone using Interac e-Transfer:

Step 1: Log in to your bank's online banking website or mobile banking app and navigate to the Interac e-Transfer section from the account that you want to send money from.
Step 2: Enter the recipient's email address or mobile phone number.
Step 3: Next, enter the amount you want to send over and submit your transfer.
Step 4: Optionally, add a security question and answer for your transfer. This is needed only if your recipient does not have Interac e-Transfer Autodeposit enabled on their account - if they do, then there is no need for this step. Share the security answer with your recipient in a safe manner; they will need this information to access the funds you send to them.

At this point, you are done. Your recipient will either get the funds directly into their account if they have signed up for Interac e-Transfer Autodeposit. Otherwise, they will be notified via email, SMS or a notification from their bank, and can access the funds using the answer to the security question that you chose.

It is quick and easy to send money to someone using Interac e-Transfer.

How to receive money using Interac e-Transfer?

Receiving or accepting money with Interac e-Transfer is also very easy; below are the steps to do so:

Step 1: You will receive a notification via email, SMS or your bank's online banking facility or mobile app that you have an Interac e-Transfer payment waiting for you. If you have Interac e-Transfer Autodeposit enabled on your account, there is nothing to do and the funds will simply be credited to your account.
Step 2: Simply login into your account and follow the instructions you received in the notification. You will need to enter the answer to the security question that the sender would have shared with you.

Once you accept the incoming payment by following the steps above, the funds will be credited to your account right away.

Interac e-Transfer is a simple and convenient way to send and receive money in Canada and a trusted payment method for millions of Canadians. It is available 24/7, and transfers are completed quickly and easily.

Are There Any Fees To Use Interac E-Transfer?

Interac e-Transfer fees vary depending on the financial institution. Some banks offer Interac e-Transfer for free as part of their banking package, while others may charge a fee for each transaction.

Fees may also vary depending on the amount being transferred. For example, some banks may offer free transfers for amounts under a certain threshold but charge a fee for larger transfers.

Additionally, some financial institutions may offer premium services for a fee, such as the ability to send larger amounts or expedited transfers.

Finally, some financial institutions may offer different pricing structures based on the account type or banking relationship you have with them.

Make sure to check with your financial institution to understand any fees associated with Interac e-Transfer.

You may have to pay a fee for using Interac e-Transfer. Fees vary by bank and may depend on transfer amount and account type. Check with your bank to see what their fees are for sending and receiving money with Interac e-Transfer.

What Are The Transfer Limits For Interac E-Transfer?

It is customary for financial institutions to impose transaction limits for various types of monetary activities you can do with them. Payments and transfers sent or received using Interac e-Transfer are no exception.

Most banks and credit unions will likely impose daily or weekly limits on the amount of money that can be transferred using Interac e-Transfer. It is common to see these limits being set at CAD 3,000 and CAD 10,000, respectively.

That said, your bank may have totally different limits. Make sure to check with your bank what their limits are for Interac e-Transfer payments.

How Long Does An Interac E-Transfer Payment Take?

Interac e-Transfer payments generally finish instantaneously. This is especially applicable when the recipient has Interac e-Transfer Autodeposit enabled - in such cases, the funds arrive in the receiver's bank account within seconds.

In case the recipient does not have Interac e-Transfer Autodeposit and has to answer the security question, the overall transfer time may be slower. But again, this is solely due to the manual step of answering the security question. Once the recipient provides the security answer, the funds are credited into their account right away.

Payments and transfers made using Interac e-Transfer finish instantly.

How To Cancel An Interac E-Transfer Payment?

Since Interac e-Transfer payments finish instantly, you cannot cancel the transfer if the recipient has accepted the transfer and their bank account has already been credited with the funds.

In case the transfer is still pending, you can generally login into your bank's online banking or mobile app and cancel a pending Interac e-Transfer payment. Note that your bank may charge you a fee to cancel the transfer.

Use caution when sending Interac e-Transfer payments since they will clear as soon as the recipient accepts the transfer (or if they have Interac e-Transfer Autodeposit enabled). In many cases, it may be hard to cancel transfers due to the rapid processing speed.

Is Interac E-Transfer Safe?

One of the most important, yet often misunderstood aspects of payments sent via Interac e-Transfer is the confusion that money is sent via email or SMS - this is simply not true.

Email and SMS are only notifications mechanisms to let the sender and receiver know of an Interac e-Transfer transaction. The actual movement of funds happens via trusted banking networks and payment gateways that are responsible for moving millions of dollars every day. This inherently makes Interac e-Transfer a safe way to send and receive money.

Additionally, Interac e-Transfer is designed with several security features to protect users' personal and financial information; some of these include the below:

Reliance on bank grade authentication to access your account without needing any separate credentials or login for Interac e-Transfer access.
Using encryption technology to protect information during transmission as well as at rest.
Relying on a security question and answer that are known only to the sender and receiver. This makes the transaction more secure since only the recipient with whom the sender shares the security answer can access the funds.
Allowing users to set up Autodeposit, which automatically deposits funds into a pre-determined bank account without requiring the recipient to answer a security question. This feature provides an added layer of security as it eliminates the need to share sensitive information.

Interac e-Transfer implements many security features that help to make it a trusted and secure electronic funds transfer service in Canada.

Which Banks In Canada Support Interac E-Transfer?

Given the popularity of Interac e-Transfer in Canada, it is no surprise that the support from financial institutions is widespread. Banks and credit unions do not want to be left behind by not supporting this popular service, and hence risk losing customers.

At this time, more than 250 banks, credit unions and financial institutions can handle Interac e-Transfer payments in Canada².

Therefore, the chances that your bank is already able to handle Interac e-Transfer transactions are pretty high. If in doubt, check with your bank to ensure you can use this popular payment service.

How To Send International Transfers With Interac E-Transfer?

If you need to send money internationally, Interac e-Transfer provides limited support to do so via their partnerships with Mastercard and Western Union.

If you are a National Bank customer, you can make international transfers using Interac e-Transfer and Mastercard partnership. Simply login into your account, and select the "Send Money" > "International" option and follow the on screen instructions.

Similarly, using the Interac e-Transfer and Western Union partnership, you can send money overseas using Western Union; currently, this is possible only via the below financial institutions:

Bank of Montreal
First Calgary Financial
Summerland Credit Union
Tandia Financial Credit Union
The Energy Credit Union

As you can see, if you need to send money overseas, the options with Interac e-Transfer are fairly limited.

The good news is that there are numerous other great options to send money from Canada worldwide by using the services of money transfer companies. Check out RemitFinder for easily comparing numerous providers and pick the best one for your international money transfers from Canada.

What Are The Benefits Of Interac E-Transfer?

Interac e-Transfer offers numerous benefits to users in Canada. Here are some of the key advantages of using this electronic funds transfer service:

Convenience: Interac e-Transfer is incredibly convenient. Users can send and receive money 24/7 from anywhere with an internet connection from their bank account.
Fast Transfer Speed: Interac e-Transfer payments process really fast, almost instantly.
Security: Interac e-Transfer is a secure payment method. The service uses multi-factor authentication, encryption, and fraud detection to protect users' personal and financial information.
Affordability: Interac e-Transfer is often less expensive than other money transfer options, such as wire transfers or sending money through a money transfer service.
Wide Adoption: Interac e-Transfer is a hugely popular and widely adopted payment method with more than 250 banks, credit unions and financial institutions across Canada as participants.
Ease Of Use: Interac e-Transfer is easy to use. Users only need to enter the recipient's email address or mobile phone number, the amount of money they want to send and create a security question that only the recipient can answer. Once the transfer is complete, the recipient will receive an email or text message with instructions on depositing the money into their bank account.

Interac e-Transfer offers a convenient, secure, and affordable way for Canadians to transfer money. Whether you need to send money to a friend, pay a bill, or receive payment for goods or services, Interac e-Transfer is a reliable option.

Are There Any Limitations Of Interac E-Transfer?

Interac e-Transfer is a popular electronic funds transfer service in Canada, but it does have some limitations.

One of the main limitations is low transfer limits. Financial institutions that offer Interac e-Transfer usually limit the amount of money that can be transferred in a single transaction or within a certain period. These limits vary by institution and may sometimes be adjusted based on a user's account status or history.

Additionally, some financial institutions may charge fees for using Interac e-Transfer. These fees may be flat fees or a percentage of the transaction amount.

Check with your financial institution to understand any transfer limits or fees associated with Interac e-Transfer.

Finally, it's important to note that Interac e-Transfer is only available in Canada; it can be used to transfer money internationally but in a very limited way.

Conclusion: Is Interac E-Transfer Right For You?

In summary, Interac e-Transfer is a popular and convenient way to send and receive money in Canada. Its easy-to-use platform and quick transfer times make it a great option for anyone who needs to send money to family or friends, pay bills, or make purchases.

Interac e-Transfer also offers robust security features to protect users' personal and financial information.

However, it's important to know the limitations and fees associated with Interac e-Transfer. Transfer limits and service fees can vary by financial institution, so it is important to check with your bank to understand potential costs or restrictions.

Consider your individual needs and preferences when deciding if Interac e-Transfer is the right choice for you.

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