What is an ACH payment in Canada? : Your complete guide

ACH payments are a simple and reliable way for businesses in Canada to move money electronically. Whether it’s paying suppliers, processing payroll, or receiving customer payments, ACH transfers offer a cheaper and more convenient alternative to cheques or wire transfers.

In this guide, we’ll break down how ACH payments work in Canada, the fees involved, and how long they take to process. We'll also look at the Wise Business account as an alternative that lets you send and receive global payments around the world and at home.

Does Canada have ACH payments?

Canada does have ACH-style payments, though they are commonly referred to as Electronic Funds Transfers or EFTs¹. These payments work similarly to ACH transfers in the US, allowing businesses and individuals to move money between bank accounts electronically.

While ACH or Automated Clearing House payments are a US system overseen by NACHA², Canada’s EFT system works in a similar way—allowing businesses and individuals to transfer funds electronically between bank accounts.

Most major Canadian banks support ACH/EFT payments, including:

• CIBC, RBC, Scotiabank, and TD Bank – These banks offer ACH/EFT transfers for businesses and personal accounts, usually through online banking or direct deposit services.
• Credit unions and smaller banks – Many also provide ACH/EFT services, though features and processing times may vary.
• Neo-banks like KOHO or Wealthsimple – These typically don’t support ACH/EFT transfers directly but may allow linked bank accounts to move funds through banks.

How do ACH payments work in Canada?

ACH payments in Canada, often referred to as EFTs, allow businesses to send and receive payments directly between bank accounts, and are commonly used for payroll, supplier payments, and recurring bill payments. The steps to send an ACH payment in Canada are⁴

1. Set up ACH or EFT access with your bank

Start by enrolling in your bank’s ACH or EFT services. This usually requires a business bank account and may involve submitting verification documents or completing onboarding forms.

2. Gather the recipient’s banking details

You’ll need key information such as:

• The recipient’s full name - as it appears on their account
• Bank account number
• Transit and institution number
  Some banks may also require additional info if you’re making international or batch payments.

3. Initiate the payment in your online banking portal

Log into your bank’s ACH/EFT platform or business banking portal. Input the payment amount, recipient details, and preferred delivery date. Some banks allow you to upload a batch file if you’re sending multiple payments at once.

4. Review and authorise the payment

Double-check all details before confirming the transaction. Your bank may require additional security steps such as dual authorisation or multi-factor authentication.

5. Monitor the payment status

ACH payments usually process in 1–3 business days, depending on the bank and whether it’s a domestic or cross-border transfer. You can track the status through your online banking dashboard.

6. Record and reconcile the transaction

Once the payment is complete, log the transaction in your accounting software or accounts payable system. Be sure to retain any confirmation numbers or records for auditing purposes.

Limitations of ACH payments in Canada

• Limited currency options – Canadian banks only support CAD and USD ACH payments, as everything else requires an international transfer. This means that international businesses may need to find alternative methods for multi-currency payments.
• Exchange rate markups – When sending USD from a Canadian bank, the conversion often includes a hidden markup on exchange rates, making transactions more expensive.
• Bank fees – Fees vary between banks, but ACH/EFT transfers can cost anywhere from $0.85⁵ to $1.50⁶ per transaction or even free⁷, depending on volume and whether the payment is cross-border.
• Processing delays – Unlike wire transfers, ACH payments are not instant, and weekends or public holidays can cause further delays⁸.

For businesses needing faster, more cost-effective global payments, the Wise Business account offers an alternative, letting you send payments in multiple currencies at the mid-market exchange rate, without hidden fees.

Send payments to over 160 countries with Wise

For businesses that frequently need to send and receive money internationally, Wise Business offers a smarter alternative to traditional ACH payments. While Canadian banks limit ACH transfers to CAD and USD, Wise lets you send payments in over 160 countries and hold more than 40 currencies—all without inflated exchange rates or excessive fees.

Why choose Wise Business?

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
with our demo >>>

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.

Wise's has been reviewed and appreciated on public platforms such as:

• Trustpilot Canada: 4.3/5 stars with 256,776+ reviews
• Play Store Canada: 4.7/5 stars with 1.28M+ reviews

What are the fees for sending ACH payments in Canada?

The cost of sending ACH payments in Canada varies by bank. RBC charges $0.85 per transaction with additional fees like $0.50 for returned payments and $15 for reversal requests⁵, while TD Bank customers can make a standard ACH delivery for free⁷.

Fees can quickly accumulate, especially for businesses making frequent transactions. Since banks often apply their own exchange rates and extra charges, it’s worth checking with your provider to understand the full cost of ACH transfers.

How long do ACH payments take in Canada?

ACH payments in Canada typically take one to three business days¹⁰ to process. Unlike wire transfers, which are processed in real time, ACH payments are handled in batches, meaning they are only processed at specific times throughout the day. The exact time for funds to arrive depends on factors such as the sending and receiving banks, the country and currency involved, and the bank’s internal processing times. Delays may also occur over weekends and public holidays.

Choosing the Right Payment Solution for Your Business

ACH payments - or EFTs in Canada are a reliable way to move money domestically, but they come with limitations—processing times, currency restrictions, and potential bank fees. While major banks support ACH/EFT transfers, businesses handling international payments may need a more flexible option.

Use Wise Business as an alternative to send and receive payments in multiple currencies without hidden fees. Get the mid-market exchange rate every time and keep more of your money with low, upfront costs, so you can focus on growing your business.

Sources:

1. Canada EFT - ACH Payment Processing Solutions
2. ACH Processing in 2023 - ACH Payment Processing Solutions
3. Electronic Funds Transfer Payments | Scotiabank Canada
4. What is an ACH payment in Canada? Your Step-By-Step Guide
5. ACH Web - Fees
6. Bank Account related fees | Scotiabank Canada
7. Personal Fee Schedule
8. Do ACH Payments Go Through on Weekends and Holidays?
9. Wise Business Fees & Pricing: Only Pay for What You Use
10. Understanding ACH Payments: A Guide for Canadian Businesses