What's the difference?
EFT (Electronic Funds Transfer) is the Canadian batch payment rail. It runs through Payments Canada's ACSS system. It's used for payroll, direct deposit, pre-authorized debits, government benefits, and routine business-to-business payments.
Interac e-Transfer is a near-real-time peer-to-peer payment built on top of email and phone-number lookups. It uses the Interac network to push funds to a recipient identified by contact info rather than account number.
Side by side
| e-Transfer | EFT | |
|---|---|---|
| Best for | Peer-to-peer, small business invoices, one-off payments | Payroll, direct deposit, recurring payments, vendor batches |
| Speed | Minutes | 1–3 business days |
| Setup | Recipient's email or phone | Recipient's transit/institution/account number, agreement |
| Limits | $3,000–$25,000 per transfer | Typically much higher; per-batch caps depend on bank/processor |
| Cost | Free for most chequing accounts | Low, often pennies per payment with a processor |
| Best for recurring | Manual every time | Designed for recurring |
When to choose e-Transfer
- One-off or low-frequency payments.
- You only have the recipient's email or phone — not their account details.
- You need the funds to land within minutes.
- Small business invoicing, freelance work, contractor payments under the limit.
When to choose EFT
- Payroll for employees.
- Recurring vendor or contractor payments.
- Pre-authorized debits (rent, gym, subscription billing).
- High-volume batches.
- Larger one-off amounts where the per-transfer fee on a wire isn't worth it.
How to actually send EFT as a small business
Most small businesses don't initiate EFTs directly through a bank — they use a payroll provider (Wagepoint, Payworks, ADP, QuickBooks Payroll), a payment processor (Plooto, Versapay), or accounting software with a payments module. The bank rail is the same in the background.