Aspect | ACH (Automated Clearing House) | EFT (Electronic Funds Transfer) |
Definition | A type of electronic funds transfer that processes payments in batches | A broad term that refers to any transfer of funds between accounts via electronic means |
Speed | 1 to 3 business days | Often within minutes to 2 business days, but may vary depending on the type of EFT |
Cost | $20-$30 per transaction from the big banks in Canada; $0-$2 for transactions made in financial platforms like Venn | Varies by provider and method; Venn’s pricing is as follows: - Interac e-Transfer®: Free
- EFT, ACH, UK Faster Payments, SEPA: $0 to $2 per transfer
- Wire (SWIFT) and FedWire: $6 to $10 per transfer
|
Transaction Type | Recurring payments, such as payroll, bill payments, and vendor payouts | One-time payments, card transactions, and international transfers |
Transfer Method | Batch processing of payments between banks | Various methods, such as wire transfers, debit card transactions, and online bank transfers |
Security | Highly secure, often with encrypted systems | Varies depending on the method (e.g., wire transfers may be harder to reverse once processed) |
Transaction Limits | Based on your bank account and usage | Depends on the EFT type (e.g., wire transfers have higher limits) |
Usage | Best for recurring payments and payroll | Flexible; good for one-off or global payments |
International Transfers | Rarely supported; ACH (Automated Clearing House) is a US-specific payment network and is only for payments between US networks. | Supports both domestic and international transfers |
Regulation | Canada does not have ACH but uses similar batch-based EFT systems. | EFTs (including pre-authorized debits and direct deposits) flow through the Automated Clearing Settlement System (ACSS). |
