EFT payment limits

What EFT Rails does

EFT Rails checks your balance and approval settings before sending an electronic funds transfer (EFT). A payment out is refused when your balance with EFT Rails cannot cover it.

You can give each user an approval limit. A payment above the approver's limit waits for a second person whose limit covers it. With no approval limits set, nothing waits. The API reference describes how to work with payments.

Who sets the limit

Your bank decides how much your business can send through EFT payments in Canada. It sets the limits when it opens your account, including limits per item, per file and per day. Limits can differ by service and channel. You can ask your bank to raise them.

No rule sets a dollar amount for an EFT. A payment service provider also carries its own limits with its bank, so its available amount reflects those arrangements as well as yours.

The file's only amount requirement concerns its format. The amount field has ten digits and holds the dollar amount. It must be greater than zero, or the payment is rejected.¹ The field's size is a format requirement. Your bank's limits decide what you can send.

Debits have a second limit

A pre-authorized debit (PAD) agreement adds a second limit by setting the amount you are allowed to collect. The agreement must state whether the debits are for a fixed amount, a variable amount or both.²

For a variable amount, or a change to a fixed amount, give the payor pre-notification at least 10 calendar days before the debit. Pre-notification is a notice stating the amount and date of the next debit.²

A debit that was not drawn as its agreement says can be returned on the payor's claim. The window is 90 calendar days for a Personal PAD and 10 business days for a Business PAD. Return reason code 916 applies to a Personal PAD, and code 919 applies to a Business PAD.³ See the PAD dispute windows for the return periods.

Other ways to pay

Other payment rails set their own limits, which can be higher or lower than your bank's EFT limit.

Compare EFT and e-Transfer when choosing between bank limits and the Interac e-Transfer for Business amount. For immediate payments, see the Real-Time Rail.

Sending a large amount

Choose the payment method and schedule that fit the amount. Use a wire for one large payment. For a large batch, use a later file or a later Due Date, which is the date the payments are due. You can also ask your bank to raise the limit. Compare EFT and wire transfers before choosing.

Never split one obligation to fit a limit.

A late file also changes when the payment enters the exchange. A file sent after the last exchange of the day goes into the next business day's first exchange.⁶ Plan the submission time with the EFT cutoff times.