A closer look at ACH, ETF and wire transfers in Canada

ACH, EFT, and wire transfers are all electronic methods for moving money in Canada. ACH (Automated Clearing House) and EFT (Electronic Funds Transfer) are often used interchangeably for domestic payments such as payroll and bills, while wire transfers are typically reserved for faster, high-value, or international transactions.

Whether you’re paying bills, sending payroll, or transferring large sums, knowing the difference can help you choose the right transfer tool for the job. We’ll break it all down and show how Wise can be a cost-effective alternative for sending money internationally.

What are ACH, ETF, and wire transfers?

In Canada, the terms ACH, EFT, and wire transfer are often used when moving money electronically, but they refer to different systems that serve different purposes. Here's a breakdown of what each one means and how they work.

ACH (Automated Clearing House)

An ACH transfer is commonly used to describe a batch-processed payment system in the United States. In Canada, this system is essentially mirrored by EFTs - a term that generally refers to electronic payments. In Canada, ACH transfers typically refer to cross-border USD transactions between Canadian and American accounts, especially in business banking. These transfers are usually slower than wires but are cost-effective for recurring or scheduled payments like payroll or supplier invoices.

ETF (Electronic Funds Transfer)

An EFT is Canada’s version of ACH for domestic payments but is also a broad term that refers to all electronic payments when a transfer is made between Canadian financial institutions. It’s widely used for things like:

• Payroll deposits
• Bill payments
• Business-to-business transactions

EFTs are accepted by all major banks, completed within 1–4 business days, and generally cost less than wire transfers.

Wire transfer

A wire transfer is a faster, real-time way to send money—either within Canada or internationally. Wire transfers within Canada are processed through Lynx², Canada’s high-value payment system, or via SWIFT for international wires. They usually come with higher fees—often ranging from 30 CAD to 80 CAD or more—depending on the bank and destination. The duration of wire transfers can vary depending on the currency pair and number of intermediary banks involved.

ACH vs. ETF vs. wire: Key differences

While all three transfer types involve moving money electronically, they differ in speed, cost and network infrastructure. Here’s how they compare side by side.

ACH vs. ETF vs. wire transfers in Canada

A quick breakdown:

• EFT (Electronic Funds Transfer): In Canada, EFT refers to the electronic transfer of funds between Canadian financial institutions and is widely used for domestic transactions.
• ACH (Automated Clearing House): While ACH is a US-based system, in the Canadian context, it often refers to cross-border USD transactions between Canadian and American accounts, particularly in business banking.
• Wire transfers: These are used for both domestic and international transfers, typically involving larger sums or time-sensitive payments. However, they are processed individually, which contributes to higher fees.

Limits on ACH, ETF and wire transfers

When it comes to sending money, limits matter for businesses or individuals handling large transactions. In Canada, the limits for ACH, EFT, and wire transfers can vary depending on your bank or payment provider, the type of account you hold, and the method used. EFT and ACH are typically used for smaller, routine transactions, while wire transfers are used for much larger payments, albeit with higher fees.

Below is a general comparison of some of the typical limits you’re likely to come across. But, of course, be sure to check with your provider for specifics, as limits can vary widely across institutions.

Transfer limits for ACH, ETF, and wire transfers

Fees for ACH, ETF, and wire transfers

In Canada, fees for ACH, EFT, and wire transfers vary depending on your bank, account type, and the payment destination. Some providers offer low or no fees for local EFTs or ACH payments, while wire transfers, particularly international ones, often come with much higher charges.

ACH transfers—often used for cross-border payments to the US—usually come with low or no fees. For example, CIBC charges around $10 per ACH payment, but there’s also a one-time setup fee of $350 for businesses that want to use this service¹⁰. Most recipients don’t pay a fee to receive ACH payments, although that can depend on their account type.

EFTs (Electronic Funds Transfers) are typically low-cost or even free for domestic payments within Canada. Many banks allow small businesses to send EFTs through online banking platforms, charging only a small fee per transaction, and they are usually free to receive. However, there may be additional charges such as monthly service fees or fees for using advanced features like batch payments.

Wire transfers are the most expensive option of the three. Sending a domestic wire transfer usually costs around 30 CAD to 50 CAD¹¹, while international wires can range from 40 CAD to 80 CAD^{12, 13} or more, depending on where you are sending the funds and the currency. Receiving a wire transfer may also cost you anywhere from 15 CAD¹³. Some international wire payments may also include intermediary bank fees or hidden currency conversion markups, depending on how the transaction is routed, which can further bump up the cost.

In general, ACH and EFT transfers are more affordable for regular or recurring payments, especially within Canada or North America. Wire transfers are best used for high-value or time-sensitive payments, where speed and security outweigh cost.

A smarter alternative for international transfers: Wise

When it comes to sending money internationally, Wise offers a digital solution designed to be transparent, low-cost, and easy to use. Unlike traditional banks that often add hidden fees or inflate exchange rates, Wise uses the real mid-market exchange rate with no markup.

Opening a business account at Wise is free, online and easy! With Wise, you don’t lose money to monthly subscriptions or have it held up as minimum balance. You pay only for what you use. Here’s what you get for the essential and complete version for a one-time fee of 55 CAD:

You can always upgrade from the essential features to avail all Wise business features for a one-time payment of 55 CAD

Experience owning a Wise business account
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It only takes a few minutes to set up your multi-currency account, and make the most of the mid-market exchange rate.

Step 1. Enter information relevant to yourself and your business.
Step 2. Share essential information about your business. This includes

• Business registration
• The business registered and trading addresses
• The industry you’re in
• Online presence
• Name, date of birth, country of residence - for all stakeholders
• Documents proving ownership of the business

Step 3. Enter essential information to verify your identity
Step 4. Set up and make a transfer as indicated on your account. Alternatively, you could pay the one-time fee and get account details in over 10 currencies.
Step 5. Wise sends you a confirmation email within 10 working days.

In case you add team members to the business account, they will need to be verified too.

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• Trustpilot Canada: 4.3/5 stars with 256,776+ reviews
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Conclusion

ACH, EFT, and wire transfers each serve a unique purpose in Canada’s banking system. ACH and EFT payments are ideal for routine, domestic transactions like payroll and bill payments, while wire transfers are better suited for sending larger amounts quickly domestically and across borders.

If you’re sending money abroad and want to avoid confusing fees or marked-up exchange rates, Wise makes it easier to keep more of your money in your pocket.

Sources:

1. Electronic Funds Transfer Payments | Scotiabank Canada
2. Wire payments - Payments Canada
3. ACH Web - Fees - RBC
4. Sending and Receiving Wire Transfers | CIBC
5. ACH Web - Daily Limit - RBC
6. Money moves: EFT v. Interac e-Transfer® - EQ Bank
7. Guide to CAD transfers | Wise Help Centre
8. RBC International Money Transfers - RBC Royal Bank
9. Send money internationally with TD Global Transfer
10. Business payment methods | CIBC
11. TD Canada Trust - List of Services & Fees Effective Date: May 24, 2022
12. How to Send or Receive a Wire Transfer - RBC
13. Sending and Receiving Wire Transfers | CIBC
14. Wise Fees & Pricing: Only Pay for What You Use