How to Make an EFT Payment: A Step-by-Step Guide
Learn how to initiate EFT Payments as a Canadian Business and innovative solutions available on the market, like Float, that you can use for free.
September 21, 2024
As a business owner, you’re always looking for ways to streamline your financial operations and make payments more efficient. Electronic Funds Transfers (EFTs) have become an increasingly popular method for sending and receiving payments, thanks to their speed, security, and convenience.
In this guide, we’ll walk you through the process of making an EFT payment, step by step. By the end, you’ll have a clear understanding of how to initiate and track EFT transactions, ensuring smooth and accurate payments every time.
Make EFT Payments with Float
Canada’s best-in-class EFT, ACH, and Global Wires payments platform — plus average savings of 7%.
What is an Electronic Funds Transfer (EFT)?
An Electronic Funds Transfer (EFT) is a digital transaction that moves money from one bank account to another without the need for physical paperwork. EFTs are commonly used for a variety of payments, including payroll, vendor payments, and personal transactions.
Why use EFT payments?
EFT payments offer significant benefits over traditional payment methods. They’re faster, more convenient, and more cost-effective than checks or cash. By eliminating the need for physical paperwork, EFTs reduce administrative work and enhance financial control.
How to Make an EFT Payment: A Step-by-Step Guide
Initiating an EFT payment is a straightforward process that requires the correct information and authorization. By following these steps, you can ensure a smooth and secure transaction every time.
1. Gather necessary information
Before you can initiate an EFT payment, you’ll need to obtain the recipient’s bank account number and routing number. It’s crucial to verify that the recipient’s name matches the bank account details to avoid any errors or delays.
2. Choose your payment method
There are several ways to initiate an EFT payment, including online banking, mobile banking, or an accounts payable platform. Each method may have slightly different steps, but they all generally require the same information.
3. Log in to your banking platform
To get started, access your online or mobile banking platform using your login credentials. Once you’re in, navigate to the section for payments or transfers.
4. Enter payment details
Input the recipient’s bank account number and routing number, along with the payment amount and any relevant payment notes or references. Double-check all information for accuracy before proceeding.
5. Review and confirm the payment
Before finalizing the transaction, take a moment to review all entered information one last time. Once you’re confident everything is correct, confirm the payment and authorize the transaction. Some platforms may require two-factor authentication for added security.
6. Track the payment
After initiating the EFT payment, you can monitor its status through your banking platform. Most platforms provide real-time updates and notifications upon successful completion, giving you peace of mind that your payment has been processed.
Tips on Making EFT Payments
1. Ensure accurate information
To avoid errors and delays, always double-check the recipient’s bank details before initiating a transfer. Even a small mistake can cause significant headaches down the line.
2. Use secure networks
When conducting EFT transactions, it’s essential to use secure internet connections to protect your financial information. Avoid using public Wi-Fi for financial transactions, as these networks are more vulnerable to security breaches.
3. Monitor your transactions
Regularly check your bank statements and transaction history to ensure all EFT payments are accurate and authorized. If you notice any discrepancies, report them immediately to your financial institution to resolve the issue promptly.
Make EFT Payments with Float
Canada’s best-in-class EFT, ACH, and Global Wires payments platform — plus average savings of 7%.
Streamline Your EFT Payments with Cutting-Edge Solutions
When it comes to making EFT payments, using a dedicated bill pay service can greatly simplify the process and provide additional benefits. A reliable bill pay solution should offer features like embedded EFT Payments, Automatically Generated Payment Confirmation Letter, ability to pay in USD and CAD, and earn interest from funds in transit.
By using a comprehensive bill pay service, you can enjoy a centralized platform for managing all your invoice payments, regardless of the payment method or currency. This streamlined approach saves you time, reduces the risk of errors, and provides greater visibility into your financial transactions.
If you’re looking for a comprehensive solution to streamline your EFT payment process, we invite you to explore Float’s Bill Pay service. With features like AI-powered Bill Intake, embedded EFT/ACH and Global Wires, and 4% interest on funds, Float’s platform is designed to simplify the way you manage and make EFT payments in Canada. Get started for free today and experience the benefits of a powerful, user-friendly bill pay solution that can help you save time, reduce errors, and maintain better control over your financial transactions.
Frequently Asked Questions
EFT payments typically take 1-4 business days to process, depending on the receiving bank and the time of day the transaction is initiated. With Float’s Bill Pay solution, you can pay out directly from your Float Balance, which means your money will arrive the next business day.
In most cases, EFT payments do not incur any fees from the sending or receiving bank. However, some banks may charge a small fee for outgoing transfers, so it’s best to check with your financial institution. When you process an EFT payment on Float, there is a small fixed fee of $1 CAD per transaction.
Canceling an EFT payment after it has been initiated is not always possible. If the funds have already been released, you’ll need to contact the recipient directly to request a refund.
Most banks do not impose limits on the amount of money you can send via EFT. However, some banks may have daily or monthly transfer limits for security reasons. Check with your bank for specific limits.
Float is Free to use on our Essentials plan, where you will be able to issue unlimited virtual CAD/USD cards, earn 4% interest on deposits, reimburse employees and pay vendor bills. If you need more sophisticated functionality, like over 20 physical cards, Netsuite integration, or an API solution, you will have to consider our paid Professional and Enterprise plans.
Float offers Charge Card and Prepaid funding models. You can apply (*Conditions apply. Book a demo to learn more) for unsecured, 30-day credit terms with high limits up to $1M, no credit checks and personal guarantees. Prepaid model offers 4% interest on all deposits with no cash lockups with account opening in < 24 hours.
Unlike traditional cards that get you to spend more, Float is the only corporate card in the world that helps businesses spend less. Through a combination of financial rewards like our 1% cashback, 4% interest on deposits, no FX fees with our USD cards and time savings of at least 8 hours per employee Float’s customers on average save 7% on their spend.
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