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What is an EFT Payment?

June 15, 2024July 15th, 2024No Comments
Mariel Rhetta
Content Strategist at Rutland FX
Published on: (Updated ) - minute read
For UK businesses and individuals sending money to Canada, it helps to know the most efficient and cost-effective ways to transfer funds. You may have come across the term Electronic Funds Transfer (EFT) in Canada. This article explains how EFT in Canada operates and discusses its importance for international payments.

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What is EFT?

Electronic Funds Transfer (EFT) is a payment system used in Canada for processing domestic transactions. Managed and operated by Payments Canada, it allows businesses and individuals to transfer money directly between Canadian bank accounts in CAD. This method is especially beneficial for those making regular payments within Canada, such as direct deposits, bill payments, and other routine transfers. Although EFT is generally used for domestic transactions within Canada, it can also be used for international payments to Canada from the UK when the Payment Service Provider (PSP) has a relationship with a bank or third-party provider in Canada that can facilitate the domestic leg of the transfer.

Key Characteristics of EFT in Canada

  • Domestic Focus: EFT is primarily used for transactions within Canada, making it an ideal method for Canadian businesses and individuals.
  • Types of EFT: Common EFT transactions include payroll deposits, vendor payments, and utility bill payments.
  • Processing Time: EFT transactions typically take 1-2 business days to process.
  • Cost: EFT transactions are generally low-cost or free, depending on the bank and the type of account.

What Bank Details Do I Need to Send Money via EFT?

To send money via EFT, you will need the following bank details:

  • Bank Code: The institution number that identifies the bank.
  • Branch Code: The transit number that identifies the specific branch of the bank.
  • Account Number: The recipient’s account number at the specified bank.
  • Company Name and Address: The name and address of the recipient company (if applicable).

Having these details ensures that the funds are transferred accurately and securely to the intended recipient.

What is a Bank Code?

A Bank Code, also known as the institution number, is a unique identifier assigned to each bank in Canada. It is used to ensure that the funds are transferred to the correct financial institution.

Example of a Bank Code:

  • Bank Name: Royal Bank of Canada (RBC)
  • Bank Code: 003

What is a Branch Code?

A Branch Code, also known as the transit number, is a unique identifier assigned to each branch of a bank in Canada. It helps in routing the funds to the specific branch where the recipient’s account is held.

Example of a Branch Code:

  • Branch Name: RBC Toronto Main Branch
  • Branch Code: 00002

Combining Bank Code and Branch Code

When you combine the Bank Code and the Branch Code, you create the routing number, which is crucial for accurate payment processing.

Example of a Combined Routing Number:

  • Bank Code: 003 (Royal Bank of Canada)
  • Branch Code: 00002 (RBC Toronto Main Branch)
  • Combined Routing Number: 00300002

This combined routing number ensures that the funds are directed to the correct bank and branch, facilitating accurate and efficient EFT transactions.


For UK businesses and individuals sending money to Canada, EFT offers a valuable solution. EFT in Canada is efficient and cost-effective for domestic transactions, but it requires a Canadian bank account. Understanding how EFT works and having the correct bank details can help ensure smooth and accurate transactions. As technology continues to evolve, the efficiency and accessibility of cross-border payments are likely to improve even further.

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