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What's the difference between Interac e-Transfer and EFT?

Posted on: November 20, 2012 | Author: Staff

Interac e-Transfer and Electronic Funds Transfer (EFT) are two ATB services that allow you to send and receive money electronically. On the surface, these services may seem similar, but their processes are in fact quite different.

This chart highlights those differences, including why you should choose either Interac e-Transfer or EFT to transfer money.

  Interac e-Transfer Electronic Funds Transfer (EFT)
Who's it for? ATB customers with personal bank accounts and access to ATB Online. The account must be in Canadian dollars. ATB business/corporate customers with access to ATB Online Business.
Who can I send money to? Anyone with a Canadian bank account and an email address. Any individual or business in Canada with a Canadian bank account.

With EFT, you can also pull money from an external personal/business account and deposit it into your own, as long as the other party completes a pre-authorization debit form.
How many people can I send money to? Only one person at a time. As many people or businesses as you need to.
What will I need to know to send money? Just the receiver's name and email address. The full name and bank account information for each person or businesses you want to send money to.
Do I (or the receiver) need to do any paperwork beforehand? Nope. Yes. As a business, you will have to fill out an application to use the EFT service. Also, if you are using EFTs to collect fees/pull money from other accounts, you will need a signed pre-authorization debit form from the other party.
How does it work? Enter the name and email address of the person you want to send money to. Pick a security question and answer that the receiver will know. This person will get an email notifying them of your transfer, and they have to correctly answer the question to deposit the money in their Canadian bank account. Create an electronic file that contains the names, bank account information, payment amounts, and date of payment for each person/business you are sending money to or collecting money from. Submit this file through ATB Online Business, and your payment will be processed on the date you indicated.
How much does it cost? $1.50 for each Interac e-Transfer you send. Some accounts offer two free Interac e-Transfers to send each month. It doesn't cost anything to receive an Interac e-Transfer. It depends on the level of service you subscribe to. There is no cost for the people/businesses you send or collect money from through EFT.
Is it safe? Yes. Interac e-Transfers are processed using Interac's secure servers. No banking information is sent through email. Yes. EFTs are processed using ATB's secure online banking platform and are governed by the Canadian Payments Association. Your banking information—and that of your recipients—is encrypted and protected.

If you have more questions about these services, visit our Interac e-Transfer page or our EFT page. To see if EFT is right for your business, try our EFT Cost Calculator or contact one of our EFT Experts.

Other articles you may be interested in:

5 reasons to use Interac e-Transfer
Is Interac e-Transfer safe?
4 ways to simplify your finances
 

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