Agile Payments Blog

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Why Canada EFT Integration is Difficult

Sep 19, 2019 8:41:09 PM

What is Canada EFT?

CanadaEFTImage

Canadian Electronic Funds Transfer (Canada EFT Processing) provides a convenient and cost-effective solution for managing Canadian ACH or e-check transactions.

Canadian EFT processing or Canada ACH Processing allows Canadian based businesses the ability to debit checking accounts for one-time or recurring payments.

It is important to note that in contrast to credit cards cross border payments are not available meaning funds are collected and settled in the same denomination. So a US company looking to debit Canada customer’s would need a Canadian bank account to settle funds into.

Difference from U.S. ACH?

In the US there are many providers that offer an ACH processing solution. For Electronic Funds Transfer Canada your options are much more limited as a small number of banks control the payments landscape. It can often be difficult to gain access to the Electronic Funds Transfer Canada capabilities.

Big 5

Canada’s five largest banks are known as the “Big Five:” the Bank of Montreal (BMO), Bank of Nova Scotia (Scotiabank), Canadian Imperial Bank of Commerce (CIBC), Royal Bank of Canada (RBC), and Toronto-Dominion Bank (TD).

Integrating Canada EFT Processing or Canada ACH processing as a stand alone or in conjunction with US ACH processing offers SaaS platforms a way to automate the payment collection and reconciliation process. A single system to manage both U.S. and Canadian e-check transactions and reporting data for reconciliation can be a powerful customer acquisition tools as well as a payment revenue generator.

For SaaS platforms initiating recurring payments or one-time payments from your application you make your end users business life more efficient and profitable as well as make your app more valuable.

Key Benefits and Features of our Electronic Funds Transfer Canada Platform:

  • Manage cash flow more efficiently and improve forecasting. Knowing your business has reliable predictable cash flow makes planning much simpler and much less stressful.
  • Reduce operating expenses associated with collecting/ writing cheques, manual processing, and time spent reconciling accounts. Ask someone working in the collections process how much fun it is to call people asking for payment.
  • Accelerate your payables process and control the timing of credits/debits to your account. Again business planning becomes much simpler.
  • Receive notification of rejected payments. Many times, and especially if working with a bank’s Canadian EFT tools, you are forced to manually deal with payment rejects. Often these can take a week or more to receive notification on.
  • Reduce lost and stolen cheques. By moving money electronically you reduce risk of paper cheques being lost or stolen.
  • Mitigate the risks associated with cheque fraud and forgery. Again risk is reduced and mitigated with fewer paper cheques.
  • Preserve the autonomy of your business units while ensuring centralized concentration and control of funds. Automation and systems are the key to scalable growth. An automated Canadian EFT solution is a big step in business growth
  • Reduce employee and bank service charges. Making bank trips and paying per check fees are both bottom line drags on your business. A Canada ACH solution automated these tedious manual involved tasks.

For SaaS platforms, Canadian ACH Integration offers a pathway to create a more useful and sticky end-user solution as well as generate new revenue streams.

Topics: Canada

Agile Payments
Written by Agile Payments

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