Online banking and transactions have gained popularity and served users massively, especially since we are still trying to maintain social distancing and work remotely.
e-Transfers are increasingly getting adapted as they are swift and secured. With an internet connection and a smartphone, you can send and receive money remotely.
e-Transfers work similarly to traditional banks or wire transfers. It allows you to send and receive funds within Canada with ease and convenience. The significant difference where e-Transfer differs from other transfer methods is how funds are forwarded.
How e-Transfer Works
e-Transfers occur when you send money from one Canadian bank account to another, whether personal or business. The funds sent are deducted immediately from your account (sender) and credited to the receiver’s account.
Generally, sending money online is relatively easy, although the steps might differ depending on your financial institution.
To complete an e-transfer, you will need some details. This information is what you will need to initiate and finalize your transaction. First, you need to log in to your online bank account. Then, determine the amount you want to send and the recipient’s email or phone number.
Once you send the money, the bank will send a notification requesting you create a new recipient. You can proceed to create a pseudo name if you intend to keep using the channel. You’ll be asked to input a medium of contact; this can be through phone or email.
The final step involved inputting a security question and answer. This keeps your funds secured since the recipient cannot deposit the money without answering the security question correctly.
Once you send the money, the recipient will receive an alert either through email or text message. The process takes about 30 minutes, and the sender will be notified once the money is deposited. This is after the recipient must have passed the security question.
Canceling an e-Transfer
You can cancel an e-Transfer if the money is not yet deposited in the recipient’s account. You can use different methods to cancel an e-Transfer; the process you will use depend on your financial institution or credit union.
Most financial institutions and credit unions allow their consumers to cancel an e-Transfer via their online banking app.
Navigate into your banking app and go to your transaction history. There you will find all your payments and transactions in the same sections. Usually, they are grouped by the date and time the transaction was initiated. So, it shouldn’t be challenging to find the exact transaction you are looking for.
Once you find the transaction, click on it and select cancel. It is advisable to do this on a desktop PC or laptop as most controls are limited on smartphone applications. Note that there may be a nominal administrative fee upon cancelation.
If you are unable to cancel via your banking app, you can do it by telephone. It is crucial to cancel immediately you notice an error as it increases your chances of canceling the transfer before the money is received. Below are the steps to cancel an e-Transfer in details:
- Sign in to your online banking app
- Click Transfers and select Pending Interac e-Transfers.
- Navigate to the transfer you wish to cancel
- Click the Cancel button on the right
- Select the account in which to deposit the reclaimed funds
- Click Continue
- Review your details and click Confirm to stop the transfer
e-Transfer Cancellation Charges
As the sender, you have 60 days from the day the money was transfer to cancel the transaction. The transaction will expire after 30 days from the date it was sent and notification sent to the recipient if they fail to take any action.
Within that 60 days, you can cancel and reclaim the money by clicking Cancel beside Pending the transaction status.
Bear in mind that if you do not cancel the transaction and the recipient does not accept it, the transaction will be automatically canceled. The money will be reversed to your account, and a CA$5.00 cancellation fee will be applied. Note that the initial service charge will not be refunded.
The cancelation fee you will be charged depends on your financial institution or credit union. Below are the fees some Canadian banks charge for e-Transfer cancelation:
- TD – CA$5
- RBC – ranging from CA$0 to CA$5 depending on when you cancel
- Scotiabank – CA$0
- BMO – CA$5
- CIBC – CA$3.50
Unfortunately, once a deposit has been made, you cannot cancel the transaction. This is common with accounts that have auto-deposit activated. You will have to contact and make an arrangement with the recipient to send the money.
You should always enable security questions if you aren’t sure of a transaction.
Hence, it is always advisable to only send money transfers to people you know, and trust who you’re sure will refund the money once contacted. The recipient can cancel the transaction from their end, and you can reissue the transfer to the correct details.