How to Make EFT Payments in Canada: Complete 2026 Guide

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.

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 payment types, including payroll, vendor payments and personal transactions. They’re a key part of a modern accounts payable (AP) process.

In Canada, EFTs are managed under Payments Canada’s network rules, which set the standards for the secure movement of funds through banks. Financial institutions must also follow the Financial Transactions and Reports Analysis Centre of Canada’s (FINTRAC) anti-money laundering (AML) and Know Your Customer (KYC) requirements to verify recipients and report suspicious transactions. Together, these regulations keep EFTs secure, traceable and compliant within Canada’s financial system. 

Why use EFT payments?

EFT payments offer significant benefits over traditional payment methods like cheque or wire. They’re faster, more convenient and more cost-effective. By eliminating the need for physical paperwork, EFTs reduce administrative work and enhance financial control.

For businesses, EFTs also improve accuracy and auditability. Every transaction leaves a digital record, making it easier to track spending, reconcile accounts and prevent duplicate payments. As more Canadian banks and accounting systems support direct EFT integrations, these payments have become the default for modern finance teams. Whether you’re paying contractors, reimbursing employees or settling invoices, EFTs keep payments organized, secure and compliant. 

For how EFTs compare to other payment methods, see this article on ACHs vs. EFTs. 

2026 EFT payment methods and technologies

The Canadian payment landscape is evolving. New rules from Payments Canada and updated FINTRAC guidance have been shaping how businesses send and report EFTs. And, Payments Canada has expanded membership beyond traditional banks, opening the door for fintech innovators to compete directly in Canada’s payments ecosystem.

Here’s what’s new: 

• Faster payments on the way: Payments Canada’s Real-Time Rail (RTR) continues to push forward on delivering real-time payments to businesses and consumers. 
• Simpler bill payment processes: Payments Canada’s updated Bill Payment Framework aims to reduce errors, improve reconciliation and make it easier for businesses to pay and receive invoices electronically. 
• Stronger compliance expectations: FINTRAC’s 2025 reporting updates tightened requirements for verifying recipients and documenting EFTs and these expectations will carry into 2026. Businesses must maintain accurate records, monitor transactions and submit complete data on time. 

For Canadian companies, this means EFTs are becoming faster, more transparent and more closely monitored. So make sure your finance team reviews its payment processes, stays compliant with FINTRAC’s AML rules and prepares for real-time settlement as Canada’s payment systems modernize. 

This is also great for Canadian businesses looking for a more secure and compliant solution for their business financial needs. As a registered Money Services Business (MSB) with FINTRAC, Float operates within Canada’s evolving payments regulatory framework, reinforcing Float’s commitment to transparency, funds protection and innovation.

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 and 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, log in to your online or mobile banking platform using your login credentials. Once you’re in, navigate to the payments or transfers section.

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.

Want to simplify this process? See how Float makes EFT payments seamless—take a 2-minute interactive product tour.

How much does an EFT payment cost?

EFT costs vary by financial institution: major banks charge $1.00-$1.50 per outgoing transaction, while incoming EFTs are often free. Credit unions and digital banks offer lower fees and modern. Float offers free inbound and outbound EFT payments for all customers.

For other providers, costs can depend on transaction volume, banking plans, processing speed and whether the transfer is domestic or cross-border. Compared to other methods, EFTs are typically cheaper than wire transfers ($15-$100) and business Interac e-Transfers ($1.50-$5.00), making them a preferred choice for businesses even with traditional banking fees (but honestly, why not opt for free payments with Float?). 

Use our free Bank Transfer Fee Estimator to estimate the cost of your bank transfer.

EFT payment costs: Traditional banks vs. Float

EFT payments are often described as low-cost, and technically, they are. But most SMBs underestimate where the real expense shows up.

With traditional banks, EFTs are typically processed as generic transfers. There’s little context attached—no built-in invoice detail, no embedded approval history and no automatic coding. That means someone still has to manually reconcile every outgoing payment. Over time, that reconciliation work adds up to hours each month.

Speed can also come at a premium. Many banks charge additional fees for same-day settlement, and some even charge to receive incoming EFTs. In a modern payment environment, paying extra just to move your own money faster feels outdated.

Float removes those friction points. There are no fees for sending EFT payments, and there’s no additional cost for same-day processing before the cut-off. More importantly, payments carry context—invoice data, approval history and accounting details—so reconciliation becomes a review step instead of a rebuild-from-scratch exercise.

When you look beyond the transaction fee and factor in admin time, bookkeeping back-and-forth and reduced error risk, the difference between Float and the big banks is more striking.

How Float’s EFT processing compares to competitors

In Canada, the payments landscape is still split between legacy infrastructure and modern fintech platforms. That gap shows up clearly in day-to-day finance operations.

Traditional banks can process EFTs, but many are slow to adopt newer technology. Multi-day settlement remains common. Expedited transfers often carry additional fees. And EFTs typically operate in isolation from the rest of your financial workflow.

Point solutions improve certain elements of accounts payable, but businesses often still rely on their bank for wires or other payment types. The result is a fragmented stack where payment activity lacks context across systems. Modern platforms aim to make payments contextually seamless, combining invoice data, approvals and reporting in one place. 

Float brings EFT into a broader finance platform. Before the daily cut-off, same-day EFT payments are available without additional fees. Payments include built-in invoice details, approval history and accounting coding, which streamlines reconciliation. Automated remittance confirmations notify vendors when funds are on the way, reducing follow-up and uncertainty.

Because cards, reimbursements, bill payments and reporting live in one system, finance teams gain a clearer view of where money is going and why.

Comparison table: EFT processing details

Feature	Traditional banks	Standalone AP software	Float
Same-day EFT	Often multi-day or an extra fee	Varies	Yes (before cut-off, no added fee)
Context attached to payments	Minimal	Partial	Full invoice + approval context
Remittance confirmation	Manual or limited	Varies	Automated
Fees to send/receive EFT	Common	Varies	No EFT fees
Integrated with cards + reimbursements	No	No	Yes

EFT payments vs. wire transfers: Cost and speed comparison

When deciding how to send business payments, cost and timing matter most. EFTs and wire transfers both move money electronically, but they differ in fees, processing speed and use cases. Here’s how they compare:

Feature	EFT payments	Wire transfers
Cost	$0–$1.50 per transaction	$15–$100 per transaction
Speed	1–2 business days (some same-day)	Same-day or next-day
Use case	Payroll, vendor payments, recurring transfers	High-value or international transfers
Tracking	Limited real-time visibility	Fully traceable (SWIFT network)

For domestic business payments, EFTs often offer the right balance of cost, speed and convenience.

To learn how to streamline your full spend process, see expense management for Canadian businesses.

Common EFT payment issues and how to avoid them

Most EFT challenges stem from how the process is set up, while modernizing EFT workflows reduces friction for everyone involved.

Manual data entry remains a common risk. Many bank portals require you to re-enter beneficiary details each time you send a payment. That repetition increases the chance of human error, especially as payment volume grows. Duplicate payments and misdirected funds often trace back to this step.

Another friction point is vendor adoption. Some small businesses continue to rely on cheques simply because they’re familiar. Moving to EFT can require a conversation to help vendors understand they’ll receive funds faster, with clearer remittance information and greater predictability.

Visibility is another recurring issue. When payments leave your account without clear context or confirmation, internal teams struggle to track status and vendors follow up unnecessarily.

The fix starts with centralization. Store beneficiary details securely and automatically attach the invoice context. Use approval workflows that route payments to the right stakeholders before funds are released. Ensure remittance confirmation is sent automatically so vendors know when to expect payment.

Here are some common issues and how to fix them:

Issue	Cause	Solution
Payment delayed	Bank cutoff time missed or processing backlog	Schedule before your bank’s daily cut-off time (usually between 5:00 p.m. and 8:00 p.m. local time) and allow up to two business days for completion.
Wrong account information	Typo in routing or account number	Always confirm vendor details before sending, ideally with a void cheque or direct deposit form.
Returned transfer	Account closed or information mismatch	Contact the vendor to confirm details, then reissue the payment.
Duplicate payment	Manual re-entry or duplicate file upload	Use automated reconciliation tools to flag duplicates before funds are sent.
Missing confirmation	The bank doesn’t issue transaction receipts	Use your payment platform’s confirmation letters or reports for record keeping.

Most EFT hiccups stem from timing or data accuracy issues. Double-checking account information, setting clear approval workflows and using digital payment tools can prevent most errors before they start.

How to set up EFT payments for your business

Setting up EFT payments is easier than most business owners think. Once you’ve gathered the right account details and chosen a payment platform, you can start sending secure, traceable payments in just a few steps.

1. Confirm eligibility: Check with your bank or payment provider whether your business account supports EFTs. Some banks will ask you to complete an EFT agreement or authorization form before enabling this feature for your business account.
2. Collect payee information: Obtain the vendor’s bank name, account number, transit number and institution number.
3. Create payment templates: Save recurring payees in your banking platform or expense management tool.
4. Test with a small payment: Send a low-value transaction to confirm accuracy before scaling up.
5. Automate recurring payments: Use trusted software to simplify approvals and scheduling.

Tip: If you’re already using a spend management tool, check whether it supports automated EFTs. For example, Float lets you upload invoices, extract payment details and schedule transfers directly without having to upload CSV files. 

Quick tips on making EFT payments

Want to avoid those payment issues? Beyond structural fixes, a few operational habits can further reduce risk. Here’s what you need to be mindful of. 

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.

EFT payment security best practices for 2026

Security expectations are evolving quickly as Canada’s payments ecosystem modernizes. For SMBs, that means taking a more structured approach to internal controls.

• Clear approval workflows should be foundational. Define who can authorize payments and at what thresholds. As your team grows, informal processes introduce risk.
• Funds release policies add another layer of protection. Business owners can delegate day-to-day inputs while maintaining final oversight over money leaving the company.
• Audit trails matter more than ever. Every payment should clearly show what it was for, who approved it and when it was sent. Digital systems make that visibility immediate and searchable.

Many businesses assume physical signatures provide stronger control. In practice, paper-based processes often limit transparency and make post-transaction review harder. Digital payments, when paired with structured approvals and automated tracking, provide deeper visibility and faster investigation if something looks off.

Additional practical safeguards include:

• Use two-factor authentication for all online payments.
• Restrict EFT permissions to authorized finance team members only.
• Verify payee banking details directly with vendors before large transfers.
• Reconcile all EFT transactions regularly to detect errors or duplicates.
• Maintain audit logs for all payments to ensure traceability and compliance.

Centralized tools such as Float’s platform make it easier to manage EFTs, wires and reimbursements securely, all while staying audit-ready. 

As real-time rails move closer to broader adoption, now is an ideal time to review your controls and modernize your payment infrastructure. Strong guardrails allow your business to move faster with confidence.

Streamline your EFT payments with cutting-edge solutions

When making EFT payments, using a dedicated bill pay service can greatly simplify the process and offer additional benefits. A reliable bill pay solution should offer features like embedded EFT Payments and Automatically Generated Payment Confirmation Letter. It should also offer the ability to pay in USD and CAD and earn interest on eligible balances while managing payments in one platform.

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, explore Float’s Bill Pay service. With features like AI-powered bill intake, embedded EFT/ACH ($0 fees), global wire and up to 4% interest on eligible balances, Float’s platform is designed to simplify how 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

How long does an EFT payment take to process?

EFT payments typically take 1-4 business days to process, depending on the sending and receiving institutions.  Some legacy banks may take longer. With Float’s Bill Pay solution, payments sent before the daily cut-off can arrive the same business day, and next-day business settlement is common when paying from your Float balance.

Are there any fees associated with EFT payments?

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. Float offers low or no-fee EFT payments, depending on your plan.

Can I cancel an EFT payment after it has been initiated?

Cancelling 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.

Is there a limit to how much money I can send via EFT?

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.

How much does Float cost?

Float is free to use on our Essentials plan, where you will be able to issue unlimited virtual CAD/USD cards, earn up to 3.5% interest on deposits, reimburse employees and pay vendor bills. If you need additional functionality, like over 20 physical cards, Netsuite integration and an API solution, consider our Professional and Enterprise plans.

Does Float offer Credit Card Limit?

Float offers Charge Card and Prepaid funding models. You can apply* for unsecured, up to 30-day charge card terms with high limits up to $3M—no personal guarantee required. Float assesses eligibility through a quick business credit review. Both funding models offer up to 3.5% interest on eligible balances with no cash lockups with account opening in < 24 hours.

*Conditions apply. Book a demo to learn more.

How does Float help businesses save 7% of their spend?

Unlike traditional corporate cards that reward higher spending, Float is designed to help businesses reduce unnecessary spend. Float’s customers save an average of 7% on their spend thanks to financial rewards like 1% cashback, up to 3.5% interest on eligible balances and no FX fees with our USD cards. They also save time—about two hours per employee on average—through streamlined processes and automation.

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