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 | Personal: $3,000–$10,000/day at most banks. Business: up to $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.
What brings you here today?
Deciding how clients should pay you?
With Biller, every invoice shows your e-Transfer details and, once you connect Stripe, a pay-by-card button — so clients pay the way they prefer, and card payments and Autodeposit e-Transfers are recorded as they land.
Start freeFree plan — unlimited invoices, no card needed.
Setting your prices?
Our pricing guides show what Canadian service businesses charge, service by service. When you have your rate, the free invoice generator turns it into a GST/HST-ready invoice.
Thanks for telling us.
The rest of this guide is written for you. If you ever take payments for your own work, see how Biller tracks them.
Coming soon: Real-Time Rail
Payments Canada's Real-Time Rail is scheduled to launch in Q4 2026, bringing real-time, data-rich payments between Canadian financial institutions. Banks must be able to receive RTR payments at launch, but sending will roll out gradually, so check with your bank before counting on it for a large same-day payment.