Transferring funds via email is becoming more and more popular. Here’s how this payment method works.
Email money transfers are a quick and easy way to send money to an individual or some businesses. You can use it to pay rent, send a gift to a loved one, repay a friend or help a child who is travelling abroad.
In Canada, this service is primarily offered by Interac, in collaboration with some 255 financial institutions (including National Bank). To use it, both the sender and recipient must have a Canadian bank account.
To carry out a transfer, you must have a bank account at a participating financial institution and be signed up for online or mobile banking services. Here’s how you transfer money:
1. Sign into your account, then click on the “Transfer to another person” option.
2. Select Interac e-Transfer and enter the required information: the account from which you are taking money, the name of recipient, the amount, and the date. You must also choose the delivery method (email or text message) and enter the recipient’s email address or cell phone number.
3. Enter a security question and its answer, verify all the information, and that’s all there is to it!
You don’t need to provide the recipient’s banking information. However, don’t forget to share the answer to the security question with them so they can claim their money.
Still have questions? Here are the answers to the most frequently asked ones.
Is it secure?
Yes! Notifications are the only thing sent via email or text message. The money itself is transferred as a secure payment via banking networks. Plus, the answer to a security question is required to be able to claim the money.
However, if you receive a notification for an unexpected money transfer, it is recommended that you do not click the link. It could be a phishing scam.
Are there fees associated with this service?
That is at the discretion of each financial institution. At National Bank, sending an Interac e-Transfer is free for those who have a bank account. Receiving a money transfer does not cost you anything.
How can you tell if the money was properly transferred?
The recipient has 30 days to accept the transfer. You will receive a notification when the money has been deposited into their account. If the money is not accepted after the 30 days, the transfer expires. You can then cancel it and the funds will be transferred back into your account.
Is the recipient taking too long to claim their money? You can send them a reminder before the expiration date. All you have to do is go into your account’s Interac e-Transfer history online and select the “Remind recipient” option. Take a moment to verify that their email address or cell phone number is correct. An error in their contact information could explain why the transfer was not accepted.
How do you accept a money transfer?
You will receive an email or text message notifying you that you have received an Interac e-Transfer. By clicking on the provided link, you will be directed to your financial institution’s online services or mobile app. Sign in, answer the security question and then choose which account you would like to deposit the money into. In most cases, the funds are available immediately.
Is it possible to cancel a transfer?
You can only cancel a transfer if the recipient hasn’t accepted the money yet. To do this, you need to sign in to your online bank, visit your transfer history, select the Cancel option for the transaction and follow the steps. Note that if you (or the recipient) need to cancel an Interac e-Transfer®, you will be charged a fee of $3.50.
Is there a maximum amount you can send?
The daily limit varies depending on the financial institution. At National Bank, the limit is $3,000.
Is an email money transfer only offered by Interac?
In Canada, PayPal also offers this kind of electronic transfer. However, both the sender and recipient must have a PayPal account (or open one).
Transferring money with a PayPal balance or a bank account is free if it is carried out in Canada. When money is sent abroad, additional fees apply.
That being said, if the transfer is carried out using a debit or credit card, you will have to pay 2.9% on the amount transferred as well as $0.30 per transaction.
Email money transfers are an efficient, fast and secure method of payment. You’ll see: give it a try and you’ll love it!
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