Agile Payments Blog

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Utilizing a Canada Electronic Funds Transfer

Mar 22, 2019 11:26:00 AM


Canada Electronic Funds Transfer is easiest and most cost effective solution to managing Canadian ACH, allowing businesses based in Canada to debit checking accounts for one-time or recurring payments.

Cross border payments are not available, meaning that funds must be collected and settled in the same denomination. A company based in the United States that is looking to debit Canadian customers needs a Canadian bank account to settle funds into.

Compared to the ACH processing providers available in the United States, Canada Electronic Funds Transfer processing options are scarce. A small number of banks are in charge of the payments sphere, making options limited, and making it difficult to gain access to Canada EFT processing.

A single system capable of managing both U.S. and Canadian e-check transactions, and reporting data for reconciliation leads to increase customer acquisition tool and more revenue.

Integrate Canada EFT to automate payment collection and reconciliation processes, either as an independent application or concurrently with a U.S. ACH processing solution.

Key Benefits from utilizing Canada Electronic Funds Transfer:

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

Canada Electronic Funds Transfer On-Boarding Process

Onboarding customers is a pivotal process for any organization. The third party ACH processor typically remains in the background during a “white label” onboarding process. During the process, the EFT 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:

  • Pass the underwriting data to the processor
  • Pass API credentials to the applicant user once the merchant application has been approved and enrolled.
  • 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.
  • Notify the parties involved where the application stands

How a SaaS company passes credentials is determined by the Canadian Electronic Funds Transfer path chosen. SaaS organizations require merchant users to enter API credentials, and in some cases the API credentials are passed on behalf of the merchant to the SaaS organization for entry.


Coleman Akey
Written by Coleman Akey

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