Agile Payments Blog

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Canada Electronic Funds Transfer

Mar 22, 2019, 11:24:00 AM

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Canada Electronic Funds Transfer processing options are scarce compared to the ACH processing providers available in the United States. Options are limited because of the small number of banks that run the payments sphere. This makes it difficult to gain access to Canada EFT processing.Utilizing a canada electronic funds transfer allows Canadian businesses to debit checking accounts for one-time or recurring payments.

A company based in the United States that is looking to debit Canadian customers needs a Canadian bank account to settle funds into. Funds must be collected and settled in the same denomination because cross border payments are unavailable.

Integrating Canada Electronic Funds Transfer automates payment collection and reconciliation processes, either as an independent application or concurrently with a U.S. ACH processing solution. Having a single system that manages both U.S. and Canadian e-check transactions, and reports data for reconciliation will lead to an increase in customer acquisition and more revenue.

Key Benefits from utilizing Canada Electronic Funds Transfer:

  1. Reduce lost and stolen cheques.
  2. Efficiently manage cash flow and improve cash forecasting.
  3. Reduce operating expenses (e.g. collecting/ writing cheques, manual processing, time spent reconciling accounts, etc.)
  4. Mitigate cheque fraud and forgery risks.
  5. Accelerate the payables process and control the timing of credits/debits to your account.
  6. Reduce employee and bank service charges.
  7. Preserve the autonomy of your business units while ensuring centralized concentration and control of funds. Automation and systems are the key to scalable growth.
  8. Receive notification of rejected payments.
  9. Reliable, predictable cash flow makes planning much simpler and less stressful.

On-Boarding Process

Onboarding customers is an important process for any organization. The third party ACH processor typically remains in the background during a “white label” onboarding process. During the process, the Canada Electronic Funds Transfer integration must provide a way for the organization to send the required merchant’s data to the ACH processor’s underwriting department.

An ideal API will:

  1. Notify the parties involved where the application stands
  2. Pass API credentials to the applicant user once the merchant application has been approved and enrolled.
  3. Pass the underwriting data to the processor
  4. Allow for the application and underwriting process to be presented on their website, making it seem like the ACH payments solution is coming from them.

If easy onboarding is a necessity, and having clients enrolled and processing payments is a goal, a business should give thought to Canadian Payment Facilitation [PayFac].

 

Coleman Akey
Written by Coleman Akey

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