What is Interac e-Transfer?

Interac e-Transfer is a Canadian electronic funds transfer service that allows individuals and businesses to send and receive money directly from one bank account to another using email or mobile phone numbers. The service is operated by Interac Corp., a Canadian interbank network, and is widely used across major financial institutions in Canada for domestic money transfers.

Overview

Interac e-Transfer provides a fast and secure alternative to cheques and cash. The service typically allows funds to be transferred within minutes, depending on the recipient’s bank and security settings. It is commonly used for personal payments, small business transactions, and peer-to-peer transfers.

How it works

To send money, a user logs in to their online or mobile banking platform, selects the Interac e-Transfer option, and enters the recipient’s email address or mobile number, along with the amount. The recipient receives a notification with instructions to deposit the funds. If both parties bank with institutions that support automatic deposit, the funds are transferred immediately without requiring a security question.

Participating institutions

Most major Canadian banks, credit unions, and financial service providers support Interac e-Transfer. These include institutions such as RBC, TD, Scotiabank, BMO, CIBC, and Desjardins, as well as various digital banks and credit unions.

Security features

Interac e-Transfer uses multiple layers of security, including encryption, authentication, and optional security questions for recipients who have not enabled automatic deposit. The funds never travel by email or text; only notifications are sent through these channels.

Fees and limits

While many banks offer free Interac e-Transfers with certain accounts, some may charge a small fee per transaction. Limits on the amount that can be sent or received typically depend on the financial institution and the user’s account type.