Are Interac e-Transfers the Same as Wire Transfers in Canada? A Closer Look

Do you need to send money from Canada? There are different ways to send money electronically. Interac e-transfers and wire transfers are among Canada's shared electronic fund transfers or EFTs. Have you ever wondered if Interac e-transfers and wire transfers are the same? In this article, you will learn the similarities and differences between the two. As a bonus, you will discover the best way to send money from Canada without hassle and paying high fees.

What is Interac e-Transfer?

Interac e-Transfer allows you to send, request, and receive money. Through online banking, you can transfer funds using trusted banking protocols. Transactions can take up to 30 minutes. Aside from transferring money from one account to another, with this service, you can split a bill, send money as a gift, donate, pay rent, or pay a business.

To send money via Interac e-Transfer, you will need the following:

• A Canadian bank account with a participating financial institution
• Access to your online banking via your financial institution
• Include your receiver's email address or contact number. Your recipient must also have a Canadian bank account with a participating financial institution.

Also read: Interac e-Transfer and Sending Money Abroad

Here are the steps you need to do when transferring funds via Interac e-Transfer:

1. Sign in to your bank’s online banking service.
2. Look for the option to send money using Interac e-Transfer.
3. Choose the account from which you will send the money.
4. Add your recipient. To do this, provide their name, email address, and/or mobile number. Verify before confirming. If they have a Canadian bank account registered for Interac e-Transfer Autodeposit, you will see their full legal name.
5. If your recipient has a Canadian bank account but is not registered for Autodeposit, you must set up a security question that they should answer correctly to complete the transaction. Make sure that the answer is not obvious, and do not share it in the Interac e-Transfer memo field.
6. Enter the amount you want to send. Transaction limits are typically around 2000 CAD to 3000 CAD per transaction, varying depending on your financial institution.
7. Follow the instructions, such as confirming the details and adding an optional message. Once you have verified everything, tap confirm to complete your transaction.

Also read: Understanding Interac e-Transfer Limits and Fees

What if you are the recipient of an Interac e-Transfer transaction? If so, here are the steps you need to do to receive the money:

1. You must receive an email or SMS notification about the transaction.
2. If you don’t have Autodeposit set up, click the link in the email or SMS message you received and follow the instructions to deposit the money in your Canadian bank account with a participating financial institution. Note that you must correctly answer the security question to complete the transaction.
3. If you have the Autodeposit set up, you will be notified that the money has been automatically deposited into your designated account.

What is a Wire Transfer in Canada?

Wire transfers, or bank transfers, are among the safest and most efficient ways to electronically transfer funds from one account to another through your financial institution. This service is a digital alternative to posting a check or cash.

Wire payments between Canadian banks are protected by a strong legal framework, so you have an extra layer of confidence and security, especially when transferring large amounts of money. Wire transfers cater to both domestic and international transfers, and transactions are often completed within a few hours or one to five business days.

Here is the information you need to provide your financial institution’s branch to complete a wire payment successfully:

• Name (as spelled on your account)
• Address
• Financial institution information
• Account number where the money will be transferred (excluding spaces and special characters)
• Branch name and address with the postal code
• The branch’s routing information (3-digit Canadian financial institution number and 5-digit branch transit number)
• Financial institutions’s SWIFT Business Identifier Code (if available)
• Amount to be transferred
• Value date in YY/MM/DD format
• Who will be paying the service fees (either you, the recipient, or both parties)

Here are the simple steps to send money via wire transfer:

1. Choose a bank or money transfer service provider. Don’t forget to check how much your transaction fee will be. Expect that international wire may have exchange rate fees on top of other fees.
2. Provide the required information for your transfer. You may also need a valid form of ID to send a wire.
3. Complete a transfer form. Some banks may require a branch visit, while others may require filling out online forms.
4. Submit your wire transfer and keep your receipt to track the progress of your transaction.

Key Differences Between Interac e-Transfers and Wire Transfers

Speed, fees, exchange rates, and requirements are the key differences between Interac e-Transfer and wire transfers.

• Speed: Interac e-Transfer transactions are often completed within 30 minutes. Meanwhile, wire transfers can take up to one to five business days. If you are sending small amounts of money, it is best to send them via Interac e-Transfer. However, if you are sending massive amounts of funds, it is recommended that you use a wire transfer.
• Fees: Interac e-Transfer through a participating bank is often free. On the other hand, wire transfer fees range from 15 CAD to 50 CAD, depending on the bank and whether the transfer is domestic or international.
• Exchange Rates: Interac e-Transfers rely on the exchange rates used by their partner provider. The exchange rates for wire transfers also vary depending on the provider.

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