E-transfer alternatives in Canada

What is an E-transfer?

E-transfer or email money transfers refer to fund transfers between accounts in participating Canadian financial institutions using email and online banking services. It is commonly known as Interac e-transfers, as the transactions are facilitated by Interac, Canada's interbank network.

The method is known for its convenience, allowing access to money transfers through a smartphone with multiple levels of encryption for security. E-transfers are also a quick way to send and receive money, with most transactions completed within 30 minutes.

According to their data, Interac e-Transfer transactions were valued at 1.18 billion in 2023.

How e-transfers work

E-transfers are initiated through an account holder's online banking application- usually appearing as an option for money transfers. Once you select this option, you'll need a recipient's name, email address or phone number and confirmation to complete the transaction.

A complete breakdown of the process is as follows.

• Sign into online or mobile banking and look for the Interac e-Transfer option.
• Add a payee's email address and mobile phone number.
• Enter the amount of money you would like to send them from the account you want to send it from.
• Create a password to answer a security question you can share with the recipient. This step only applies if your recipient has not signed up for auto-deposit.
• Once sent, you will be notified via email about the e-Transfer.
• In cases of an incorrect email address, incorrect response to a security question or if the recipient fails to claim the amount, the Interac e-transfer expires after 30 days.

Limitations of Interac e-transfers

Limitations imposed by Banks on Interac e-transfers can be a downside for users who are used to transferring large sums. With most institutions, the Interac e-transfer limit usually lies within the $2000-$3000 range, per transaction.

Some Alternative Money Transfer Services

• Wire Transfers: Wire transfers are a legitimate alternative to e-transfers for non-tech-proficient individuals who prefer visits to their banks.
• Electronic fund transfers (EFTs): EFTs transfer money online from bank account to bank account. It is most commonly used as a quick and secure method to set up automated bill payments.
• Money Transfer services: Platforms like Paypal offer electronic money transfer options between e-wallets.
• Cheque: Cheques rely on physical paper cheques, preferred by some older sections of society and in places where the digital age has not fully caught on.

Money Transfers with Remitbee

tWhile e-transfer is the best way to send small amounts of money within Canada Remitbee is a popular choice for money transfers from Canada to other parts of the world due to its user-friendly platform and competitive exchange rates. With Remitbee, individuals can easily send money domestically and internationally with options like cash pickups, Interac e-transfer, Debit, Bill payment, or Direct Withdrawals (EFT). Its fast and secure transfer process ensures that funds reach the recipient quickly and reliably.

Conclusion

While Interac e-Transfer remains a widely used and convenient method for transferring money in Canada, exploring alternatives can offer additional flexibility and benefits. Whether using platforms like PayPal for online transactions, wire transfers for larger sums, or mobile banking apps for seamless transfers on the go, Canadians have various options to suit their specific needs. Each alternative comes with its own set of advantages, such as lower fees, faster processing times, or broader international reach. Individuals can select the most suitable alternative to Interac e-Transfer for their financial transactions by considering factors such as convenience, security, and cost-effectiveness.