Definition
Interac e-Transfer is a Canadian service for sending money between bank accounts using only an email address or mobile phone number. It is one of the most common ways Canadian clients pay freelancers and small businesses. Funds usually arrive within minutes, and receiving them is generally free.
Also called: e-Transfer, Interac, E-transfer, Interac Request Money
Interac e-Transfer in practice
Turn on Autodeposit in your online banking so transfers sent to your email are deposited straight into your account without a security question. Put that email on your invoices and ask clients to include the invoice number in the message.
Business accounts can send Request Money, a payment request linked to the invoice that the client accepts in their own banking app. Limits per transfer and per day are set by each bank, and business limits are usually higher than personal ones.
A deposited e-Transfer is very hard to reverse. Watch for phishing emails that imitate Interac notifications, and confirm the money is in your account before marking an invoice paid. For large amounts or clients outside Canada, a wire transfer is often more suitable.
Example
A Winnipeg tutor invoices a family $480 for a month of lessons. The parent sends an Interac e-Transfer to the tutor's email with the invoice number in the message, and Autodeposit puts the money in her account within minutes.
Frequently Asked Questions
Are Interac e-Transfers free?
Receiving is generally free. Sending may be included in the payer's bank plan or charged per transfer. Check your business banking plan for fees and daily limits before relying on it for large invoices.
Can an e-Transfer be cancelled?
The sender can cancel a transfer that has not been deposited. With Autodeposit, deposit is almost immediate, so mistakes have to be resolved with the recipient or their bank.
Related terms
- Wire transfer A wire transfer is an electronic payment sent individually from one bank to another, usually settling the same day for domestic transfers and within one to five business days internationally.
- Payment link A payment link is a URL that opens a secure page where a client can pay a specific invoice or amount online by card, bank transfer, or digital wallet.
- Reconciliation Reconciliation is the process of matching payments received in your bank account to the invoices they settle, and confirming that your invoicing records agree with your bank records.
- Reference number A reference number is any identifier placed on an invoice or payment to connect related records, such as the client's project code, a contract number, or the text the client should put in their bank transfer so the payment can be matched to the invoice.
- ACH transfer An ACH transfer is an electronic bank-to-bank payment in the United States sent through the Automated Clearing House network.
This page is for general information only and is not legal, tax, or financial advice. Rules change and vary by location, so consult a qualified lawyer or accountant about your situation.