Electronic Funds Transfer (EFT) is a secure and efficient way to transfer money between Canadian bank accounts digitally, often used for payroll, bills, and business payments.
Electronic Funds Transfer (EFT) is a digital payment method that allows money to be transferred directly between bank accounts without the use of paper cheques or physical cash. In Canada, EFT is commonly used for payroll deposits, supplier payments, business transactions, and personal transfers.
EFT enables individuals, businesses, and government organizations to send and receive funds efficiently and securely. It supports both one-time and recurring payments, making it a popular method for handling regular transactions such as salaries, rent, and vendor invoices.
To initiate an EFT, the sender provides the recipient’s banking details, including the account number and branch transit number. The transfer is processed through the banking network, with funds typically arriving within one to two business days, depending on the institutions involved.
EFT is widely used for direct deposits (such as payroll), pre-authorized debits (like utility bills), business-to-business payments, and transferring funds between personal accounts. It’s also a preferred method for scheduled and recurring payments.
EFT transactions are regulated by the Canadian Payments Association (CPA) and are processed through secure banking systems. Financial institutions use encryption and authentication protocols to protect against fraud and unauthorized access.
EFT transfers are not instantaneous and usually require one to two business days for settlement. While many banks offer EFT services at low or no cost for personal use, business EFT transactions may involve setup fees or per-transaction charges.
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