Most Canadian businesses overpay for domestic transfers. Traditional banks often charge for every outgoing EFT and add account fees, even when the money never leaves the country. 

One of the most effective ways to handle domestic payments is through an Electronic Funds Transfer (EFT). EFTs are widely used for payroll, vendor payments, and recurring bills because they combine security, predictable timing, and lower costs.

While banks have offered EFT services for years, modern financial platforms like Venn made them faster, more affordable, and easier to integrate into day-to-day financial operations. 

Here is what EFT payments mean for Canadian businesses, when to use them, the exact steps to send one, and how to make the process fully automated and effortless to manage.

What is an EFT Payment in Canada?

An Electronic Funds Transfer (EFT) is a domestic CAD-to-CAD transfer between Canadian financial institutions, processed through the Automated Clearing Settlement System (ACSS) and regulated by Payments Canada. ACSS is overseen by the Bank of Canada as a prominent payment system, operating under strict national oversight for safety and reliability. 

EFTs are not instant like Interac e-Transfers, typically settling in 1–2 business days and sometimes taking up to 3–4 days depending on the institution and cut-off times. They generally cost less than wires.

When to use EFTs:

• Payroll runs
• Vendor payments over $3,000
• Recurring bills like rent
• Any large CAD transfer that exceeds your Interac e‑Transfer daily limits. Business accounts can support up to $25,000 per transaction, though some institutions may enforce lower limits such as $3,000.

Why Canadian Businesses Prefer EFT Payments

EFT payments offer multiple operational and financial advantages:

Lower transaction costs

Traditional banks often charge $5-10 per outgoing EFT. Venn offers free local CAD EFTs on Plus and Pro plans, and $2 per transfer on the free Essentials plan.

Predictable timing

EFTs settle in 1–2 business days, so you can time payments around cash flow needs. With Venn, this happens on the same or next day. 

High transaction limits

Unlike Interac e-Transfers, which are capped by recipient limits, EFTs can handle large payments without requiring multiple transfers.

Automation potential

EFTs can be scheduled in advance and integrated with accounting software, so regular payments run without manual intervention.

Secure network

EFTs run on the ACSS, with strict security and reconciliation standards.

EFT vs Interac e-Transfer vs Wire 

To help you decide when to use each payment method, here’s how EFT compares to Interac e-Transfer and wire transfers on speed, cost, currency support, limits, and best use cases.

For most domestic CAD transactions, EFTs deliver the best balance of cost, high transaction limits, and predictable settlement times, especially when paired with Venn’s free local transfer capability. 

How to Make an EFT Payment Step-by-Step

1. Collect accurate recipient details

You will need:

• Institution number (3 digits)
• Transit number (5 digits)
• Account number (7–12 digits)
• Recipient’s legal account name
• Payment amount
• Optional reference or invoice number for reconciliation

The account name has to match exactly what is on file with their financial institution. Even a small mismatch can cause delays or a return.

2. Choose the account you will send from

Select the correct CAD account that matches the payment type. For vendor invoices in CAD, use your domestic CAD account to avoid unnecessary currency conversions or FX fees.

3. Log in to your payment platform

Access your online business account or financial platform. Navigate to the payments or transfers section and select EFT as the transfer type.

4. Set up the EFT

Enter the recipient’s banking information, the payment amount, and a reference note or invoice number for reconciliation. If it is a recurring payment, set the frequency and start date.

5. Review and approve the payment

Double-check all numbers, the recipient’s name, and the scheduled date. Approve the payment using your platform’s authentication process.

6. Track and record the transaction

Monitor the payment status until it clears. Update your accounts payable records and reconcile the payment in your accounting software. Automated platforms can sync this step in real time, eliminating manual entry.

How Much EFT Payments Cost 

Many Canadian banks charge per-item EFT fees, with exact pricing varying by institution and business account type. In practice, those transactions usually sit on top of a monthly account fee, plus extra charges for other payment types and hidden FX markups when payments involve currency conversion.

With Venn:

• Free local EFTs on Plus and Pro plans.
  
• Free incoming EFTs on all plans
  
• Same-day processing for local transfers submitted before your provider’s cut-off time and within Payments Canada’s same-day processing windows.
  
• No forced conversions. FX fees only apply when you choose to convert currencies, at Venn’s transparent rates of 0.25%–0.45%, compared to the 2% to 3% typically charged by the Big Banks.
  
• Lower total cost with Venn’s free local transfers (including EFT), especially when used alongside wires, Interac e-Transfers, and automated payables.
• Built-in automation for approvals, invoice pulling, and real-time reconciliation with integration with QuickBooks and Xero.

You get faster settlements, fewer transaction costs, and less time spent managing payments.

How Venn Simplifies EFT Payments

Venn’s platform is designed for Canadian SMBs to move money without unnecessary costs or delays:

Free local EFTs on Plus and Pro

Send unlimited CAD EFTs without fees on higher-tier plans.

No forced currency conversions

Pay from your local CAD account with no unnecessary conversions. FX fees only apply when you choose to convert currencies.

Combined payment methods

Send EFTs, Interac e-Transfers, wires, ACH, and SEPA transfers from one platform.

Accounts payable automation

Pull bills from QuickBooks or Xero, categorize automatically, set approval workflows, and send payments in bulk.

Real-time tracking

See the exact status of your EFT, get notified when it settles, and match it against your payables instantly.

Integrated multi-currency accounts

Hold CAD, USD, GBP, and EUR, and pay vendors in their local currency without opening separate accounts.

Best Practices for EFT Payments

• Validate recipient details before sending to avoid delays or returned payments
  
  
• Batch payments to reduce admin time by grouping multiple EFTs into one session
  
  
• Schedule in advance so payments arrive on the correct date
  
  
• Use approval workflows to maintain control over large or sensitive transactions
  
  
• Integrate with accounting automation so every EFT is automatically matched and categorized
  

Automating EFT Payments

Automation turns EFTs from a manual task into a background process. By integrating your payment system with accounting software, you can:

• Pull invoices directly into your payment queue
  
  
• Route them through approval workflows
  
  
• Send payments automatically on scheduled dates
  
  
• Sync all transaction data back to your ledger for instant reconciliation
  

This reduces manual data entry, eliminates duplicate work, and ensures payments go out on time without extra oversight. Explore how automated accounts payable works with Venn.

Ready to simplify EFT payments in Canada? Get started with Venn today!

Frequently Asked Questions

1. How long does an EFT payment take in Canada?

Typically 1–2 business days. Venn processes them on the same or next day.

2. Can I send an EFT internationally?

No. In Canada, EFTs refer to domestic CAD-to-CAD payments processed through the Automated Clearing Settlement System (ACSS). For international transfers, use SWIFT, SEPA, ACH, or UK Faster Payments.

3. What’s the maximum amount I can send by EFT?

There is no strict national limit, but your bank or provider will have daily and per-payment caps. These are generally much higher than Interac e-Transfers.

4. How can I automate my EFT payments?

Use a modern financial platform like Venn that integrates accounts payable, approval workflows, and accounting sync. This lets you schedule payments, batch process invoices, and reconcile automatically.

‍_{This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Venn Software Inc or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.}