Email Money Transfer
Encyclopedia
Interac
e-Transfer (previously known as Interac Email Money Transfer) is a funds transfer
service between personal and business accounts at participating Canadian financial institution
s. The provider of this service is CertaPay, a division of Acxsys
Corporation.
holders at one of the Big Five banks
in Canada could send Interac e-Transfers:
Since 2008, certain Canadian Credit Union
s have also offered the service, as has President's Choice Financial
.
Small business customers who bank online at participating institutions can also send e-Transfer. Any personal account holder in Canada can receive funds.
, the funds from an e-Transfer are not frozen in the recipient's account. An e-Transfer cannot bounce
, as the funds are guaranteed, having been debited from the sender's account immediately upon initiating the transfer. As long as both sender and recipient bank at participating institutions, the funds are sent and received instantly.
However, like any online banking mode of payment, e-Transfers are vulnerable to phishing
. Many Canadians in areas where the Big Five banks have little presence or who do not bank online are penalized by a surcharge when receiving e-Transfers. Unlike a real giro
, an e-Transfer requires intervention from the recipient for every single transaction. An e-Transfer goes stale much faster than a cheque (after 30 days, the e-Transfer is automatically cancelled and the sender is notified by e-mail to retrieve the funds.)
Interac
Interac Association is a Canadian organization linking enterprises that have proprietary networks so that they may communicate with each other for the purpose of exchanging electronic financial transactions. The Association was founded in 1984 as a cooperative venture between five financial...
e-Transfer (previously known as Interac Email Money Transfer) is a funds transfer
Giro
A Giro or giro transfer is a payment transfer from one bank account to another bank account and instigated by the payer, not the payee...
service between personal and business accounts at participating Canadian financial institution
Financial institution
In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries...
s. The provider of this service is CertaPay, a division of Acxsys
Acxsys
Acxsys Corporation is a Canadian company involved in banking. It is based in Toronto....
Corporation.
Participating Institutions
Since 2003, personal deposit accountDeposit account
A deposit account is a current account, savings account, or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the...
holders at one of the Big Five banks
Big Five banks
Big Five is the name colloquially given to the five largest banks that dominate the banking industry of Canada. The five banks are operationally headquartered in Toronto, Ontario. They are all classified as Schedule I banks that are domestic banks operating in Canada under government charter...
in Canada could send Interac e-Transfers:
- Bank of MontrealBank of MontrealThe Bank of Montreal , , or BMO Financial Group, is the fourth largest bank in Canada by deposits. The Bank of Montreal was founded on June 23, 1817 by John Richardson and eight merchants in a rented house in Montreal, Quebec. On May 19, 1817 the Articles of Association were adopted, making it...
- Canadian Imperial Bank of CommerceCanadian Imperial Bank of CommerceThe Canadian Imperial Bank of Commerce is one of Canada's chartered banks, fifth largest by deposits. The bank is headquartered at Commerce Court in Toronto, Ontario. CIBC's Institution Number is 010, and its SWIFT code is CIBCCATT....
- Royal Bank of CanadaRoyal Bank of CanadaThe Royal Bank of Canada or RBC Financial Group is the largest financial institution in Canada, as measured by deposits, revenues, and market capitalization. The bank serves seventeen million clients and has 80,100 employees worldwide. The company corporate headquarters are located in Toronto,...
- ScotiabankScotiabankThe Bank of Nova Scotia , commonly known as Scotiabank , is the third largest bank in Canada by deposits and market capitalization. It serves some 18.6 million customers in more than 50 countries around the world and offers a broad range of products and services including personal, commercial,...
- Toronto-Dominion BankToronto-Dominion BankThe Toronto-Dominion Bank , is the second-largest bank in Canada by market capitalization and based on assets. It is also the sixth largest bank in North America. Commonly known as TD and operating as TD Bank Group, the bank was created in 1955 through the merger of the Bank of Toronto and the...
Since 2008, certain Canadian Credit Union
Credit union
A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
s have also offered the service, as has President's Choice Financial
President's Choice Financial
President’s Choice Financial is a banking service provided by Loblaw Companies . Several different organizations provide individual financial services under the President's Choice Financial umbrella:...
.
Small business customers who bank online at participating institutions can also send e-Transfer. Any personal account holder in Canada can receive funds.
How it works
An Email Money Transfer resembles an e-check in many respects. The money is not actually transferred by e-mail. Only the instructions to retrieve the funds are.- The sender opens an online bankingOnline bankingOnline banking allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society.-Features:...
session and chooses the recipient, the amount to send, as well as a security question and answer. The funds are debited instantly, usually for a surcharge. - An e-mail or text message is then sent to the recipient, with instructions on how to retrieve the funds and answer the question, via a secure website.
- If the recipient is subscribed to online banking at one of the participating institutions, the funds are deposited instantly at no extra charge.
- If the recipient's deposit account is not at one of the participating institutions or not subscribed to online banking at all, the funds are deposited within three to five business days, and a surcharge (currently $Canadian dollarThe Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...
4.00) is deducted from the amount received.
Benefits and disadvantages
Unlike a chequeCheque
A cheque is a document/instrument See the negotiable cow—itself a fictional story—for discussions of cheques written on unusual surfaces. that orders a payment of money from a bank account...
, the funds from an e-Transfer are not frozen in the recipient's account. An e-Transfer cannot bounce
Non-sufficient funds
Non-sufficient funds is a term used in the banking industry to indicate that a demand for payment cannot be honored because insufficient funds are available in the account on which the instrument was drawn. In simplified terms, a cheque has been presented for clearance, but the amount written on...
, as the funds are guaranteed, having been debited from the sender's account immediately upon initiating the transfer. As long as both sender and recipient bank at participating institutions, the funds are sent and received instantly.
However, like any online banking mode of payment, e-Transfers are vulnerable to phishing
Phishing
Phishing is a way of attempting to acquire information such as usernames, passwords, and credit card details by masquerading as a trustworthy entity in an electronic communication. Communications purporting to be from popular social web sites, auction sites, online payment processors or IT...
. Many Canadians in areas where the Big Five banks have little presence or who do not bank online are penalized by a surcharge when receiving e-Transfers. Unlike a real giro
Giro
A Giro or giro transfer is a payment transfer from one bank account to another bank account and instigated by the payer, not the payee...
, an e-Transfer requires intervention from the recipient for every single transaction. An e-Transfer goes stale much faster than a cheque (after 30 days, the e-Transfer is automatically cancelled and the sender is notified by e-mail to retrieve the funds.)