Payments Research

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Payment Systems & Infrastructure

How Interac eTransfer Works in Canada for Merchants

Updated: May 13, 2025

Interac e-Transfer is one of the most popular ways to send and receive money in Canada. Many consumers use it to pay friends or family. But it’s also increasingly being used by merchants to accept payments. At Clearly Payments, we often get questions from business owners about how it works, how they can use it, and whether it’s a good fit for their operations.

This article explains how Interac e-Transfer works for merchants, its benefits, limitations, and what to consider if you’re thinking about using it in your business.

What Is Interac e-Transfer?

Interac e-Transfer is a Canadian money transfer service that lets individuals and businesses send and receive funds using email addresses or mobile phone numbers. It’s offered through most Canadian banks and credit unions.

When someone sends you an Interac e-Transfer, you’ll receive an email or text notification. The money is then securely deposited into your bank account.

For consumers, it’s simple. But for businesses, there are a few extra things to understand.

Interac e-Transfer Statistics for Merchants

Interac e-Transfer continues to grow as a preferred payment method for businesses in Canada. In 2024, the platform processed over 1.4 billion transactions, up from 1.2 billion the previous year. This growth reflects an increasing shift toward faster, more flexible payment solutions, especially among small and medium-sized businesses.

October 2024 alone set a record with more than 125 million e-Transfers sent in a single month, showing how embedded the service has become in daily financial activity.

Business use of Interac e-Transfer is accelerating quickly. Interac reported that:

Business-related usage rose significantly, as more merchants adopted the platform to avoid credit card fees and delays.
The “Request Money” feature—commonly used by businesses to invoice customers—was used in 89.2 million transactions in 2024.
Many businesses also enabled auto-deposit, leading to:
- Fewer failed payments
- Faster settlement times
- Reduced manual processing

In addition, adoption is particularly strong among:

Freelancers and consultants
Tradespeople and service providers
Retailers offering remote or curbside payments
High-risk businesses that may not qualify for traditional merchant accounts

These trends make it clear that Interac e-Transfer is no longer just a peer-to-peer tool—it’s now a core part of the business payment landscape in Canada.

How Interac e-Transfer Works for Merchants

1. The Basics

Merchants can receive Interac e-Transfers just like individuals, but there are two common ways to set it up for business use:

Standard Interac e-Transfer (Manual): You receive the payment, then manually log into your bank to accept it. This works for small businesses with lower volumes.
Interac e-Transfer for Business (Automated): This version is more powerful and includes features such as real-time settlement, automated deposit, higher transaction limits, and business name visibility. It’s ideal for merchants who receive frequent payments.

2. How the Money Moves

When a customer sends an e-Transfer:

They log into their online banking and choose the e-Transfer option.
They enter your business email address and the amount.
The bank sends you a secure notification.
You accept the payment (unless auto-deposit is enabled), and the funds are transferred directly to your business bank account.

If you have auto-deposit turned on, the money goes directly into your account without any manual step.

Benefits of Interac e-Transfer for Merchants

✅ Low-Cost: Most banks charge a small flat fee per transaction (often $1.00–$1.50), which can be cheaper than credit card processing.

✅ Fast Settlement: Funds are often available within minutes, even on evenings and weekends. That’s faster than some traditional payment processors.

✅ Easy Setup: You don’t need a special terminal or software. All you need is a Canadian bank account and email address.

✅ Trusted by Canadians: Interac is a familiar and secure system that customers know and trust.

Limitations of Interac e-Transfer for Merchants

⚠️ Manual Processing (for Standard e-Transfers): Unless you have Interac e-Transfer for Business or auto-deposit set up, you’ll need to accept each payment manually, which doesn’t scale well.

⚠️ Lack of Integration: Interac e-Transfer doesn’t integrate with most point-of-sale systems, accounting software, or eCommerce platforms. That makes automation and reconciliation harder.

⚠️ Daily Limits: Most banks impose daily and weekly limits on e-Transfers. This could be a problem for businesses with high-volume or high-value transactions.

⚠️ No Chargeback Protection: Once a payment is sent via Interac e-Transfer and accepted, it can’t be reversed. That can be a benefit, but it also means there’s no protection if you make a mistake or encounter fraud and chargebacks.

Use Cases Where e-Transfer Makes Sense

Interac e-Transfers are a great option in some business situations, especially when:

You’re dealing with freelance work, consulting, or one-time service payments
You operate in high-risk industries where traditional processors won’t approve you
You want to avoid credit card fees
Your customers are other businesses rather than consumers
You want to test a payment system quickly without a long setup process

Should You Accept Interac e-Transfer?

Here are a few questions to ask:

Do your customers use Canadian banks?
Are your average transaction sizes small enough to stay within bank limits?
Are you okay with a more manual process (unless you have Interac for Business)?
Is saving on credit card fees important to your bottom line?

If the answer is yes to most of these, Interac e-Transfer could be a good fit—either as your main payment method or as a backup.

How Clearly Payments Can Help

At Clearly Payments, we specialize in helping Canadian businesses find the best ways to accept payments, including credit cards, debit, bank transfers, and e-Transfers.

We can help you:

Set up Interac e-Transfer for Business with auto-deposit
Compare payment options based on cost and ease of use
Build a reliable payment system that works for your customers

We’ll guide you through what’s best for your specific needs—whether you’re a local contractor, an online retailer, or a national brand.

May 13, 2025