EFT, PAD, and Wire Transfers for Canadian B2B Payments: Which Should You Use?

EFT in Canada runs through Payments Canada's Automated Clearing Settlement System (ACSS). Your bank debits or credits your account, batches the item with thousands of others, and settles through the clearing house overnight. This is the same infrastructure behind direct deposit, utility payments, and most payroll systems.

For B2B use, EFT typically means initiating a credit transfer (push) from your business account to a supplier's account, or receiving a payment from a buyer. The money moves entirely within the Canadian banking system — no intermediaries, no currency conversion, no correspondent banks.

What businesses actually pay:

• TD Business Banking: ~$0.22/item for bundled plans, or $1.50 on pay-per-use
• RBC: included in business account packages, ~$0.60–$1.25 per item beyond bundle
• Scotiabank: varies by plan; typically $0.50–$1.00 per EFT item
• BMO: $0.40–$1.25 per item depending on plan tier
• Using a payment platform (Rotessa, Plooto, Corefy): $0.50–$3.00 per transaction with API access and automation

What EFT can't do: No same-day settlement (unless you're on Lynx, Canada's high-value system, which is wire territory). No international payments. And the $25K/day default limit at most banks will block you if you don't request a higher limit in advance — see the limits section below.

PAD is the inverse of a bank transfer: instead of the payer pushing money out, the recipient pulls it from the payer's account. You've given a supplier or vendor a PAD agreement that authorizes them to debit your account on a schedule. Think subscription software fees, commercial insurance premiums, or a staffing firm billing you monthly.

The critical compliance requirement: Payments Canada Rule H1 mandates a written PAD agreement before any debit can be initiated. This agreement must specify the amount (or how it's calculated), the frequency, and the account being debited. Digital agreements with e-signatures are valid — but they must exist. Initiating a PAD without authorization is grounds for a reversal and potential fines.

The 90-day dispute window: Payers (the account being debited) can dispute a PAD for any reason within 10 business days for personal accounts, and within 90 days for business accounts if the amount or timing differs from the authorization. This makes PAD higher-risk for one-time large payments — a supplier who pulls $80K against your account can have that reversed if anything is off in the agreement wording.

Where PAD makes sense in B2B:

• Monthly SaaS or software fees billed by your vendor to you
• Regular supplier payments on net-30 terms with consistent amounts
• Property management collecting rent from commercial tenants
• Payroll processors debiting your account to fund payroll runs

PAD platforms for Canadian businesses: Rotessa ($0.25–$0.99/transaction, no percentage fee), Plooto (PAD + EFT + international, $25–$49/month + per-transaction), PaymentEvolution (payroll-adjacent billing), Helcim EFT (combined with card processing).

Domestic CAD wire transfers in Canada run through Lynx, Payments Canada's Real-Time Gross Settlement (RTGS) system. Unlike EFT, which batches and settles overnight, Lynx settles each wire individually and in real-time during banking hours. A wire initiated at 10am typically arrives before end of business the same day.

No dollar limit. A $500K real estate deposit, a $2M M&A escrow payment, a $1.5M construction draw — all move by wire. Banks will conduct enhanced due diligence on large wires ($100K+), but there is no system-imposed ceiling.

What Canadian banks charge for outbound domestic wire:

• TD: $15–$20 per wire (online), $35+ through a branch
• RBC: $13.50–$16 per wire online, up to $40 in-branch
• Scotiabank: $17–$25 per wire for business accounts
• BMO: $13.50–$20 per wire online
• CIBC: $15–$20 per wire for most business accounts
• National Bank: $15–$22 per wire

For high-volume wire senders (real estate developers, law firms in trust, M&A advisors), most banks offer negotiated flat monthly fees or bulk wire packages — worth asking about if you're sending more than 10 wires a month.

What to give your bank when sending a wire: Recipient name, institution name, transit number (5 digits), institution number (3 digits), account number. For international: add SWIFT/BIC code and IBAN where applicable. The smallest error — a transposed digit in the account number — can delay a wire by 2–5 business days while the receiving bank investigates.

Interac e-Transfer Business allows companies to send up to $10,000 per transfer (vs $3,000 for personal accounts), with a daily cap that varies by bank but typically tops out at $25K. Funds are available to the recipient within minutes via Interac's real-time notification and deposit system.

The problem for most B2B use: A $10K limit means you'd need 10 separate transfers to pay a $100K invoice. That's not a reasonable payment process. Some businesses split invoices to stay under the cap, but this creates reconciliation headaches and looks unprofessional. Use Interac e-Transfer Business only for:

• Payments under $10K where same-day delivery matters
• Emergency or after-hours payments that can't wait for EFT settlement
• Paying a contractor or subcontractor quickly when bank details aren't yet set up for EFT

Cheque volume in Canada has dropped ~80% since 2000, but they're still the expected payment method in a few specific contexts:

• Real estate deposits: Many sellers and their agents still require certified cheques or bank drafts for initial deposits, particularly in Ontario and BC.
• Government contracts and procurement: Some federal and provincial departments still issue payment by cheque as their default accounts-payable method.
• Trust accounts: Law firms paying settlement amounts often issue trust cheques per regulatory convention.
• Suppliers who haven't digitized: A small number of legacy vendors — especially in construction, agriculture, and manufacturing — still prefer or require cheques.