EFT reconciliation in Canada
An EFT settles the business day after its due date. A debit can still come back for up to 90 days, so each return is matched to the payment it reverses.
Updated November 3, 2026
What EFT Rails does
Reconciliation starts with a payment record that shows what happened and when the money is expected to move. Each electronic funds transfer (EFT) payment carries its state, an expected settlement date, your reference returned unchanged, and a bank reference to quote. EFT Rails calculates the expected settlement date from the payment method and the banking calendar.
The states are created, awaiting approval, submitted, settled, returned, failed, cancelled, and unknown. Failed means the payment did not happen. Unknown means EFT Rails cannot yet say whether the bank has it. Do not send a replacement while the payment is in that state.
Your system can request only the payments that changed since its last check. This is how a settlement or return reaches your system. The API reference documents the payment fields and the requests for reading payments through the API.
When a payment settles
The settlement date tells you which day the money moves between the banks. Settlement takes place on the business day after the payment's Due Date. For a payment delivered after its Due Date, settlement takes place on the business day after its exchange.1
Banks exchange EFT files three times on a business day, at 09:30, 16:30 and 21:00 Eastern Time. A file submitted after 21:00 enters the next business day's 09:30 exchange.2 A debit cannot be delivered to the customer's bank before its Due Date.3
The timing sequence is covered in how long an EFT takes, with submission deadlines in EFT cutoff times.
How a payment comes back, and by when
A payment can come back at several points, and the effect on your records depends on whether it settled. A rejected file produces no settlement, while a rejected payment does settle between the banks.1
| What it is | What happened | By when |
|---|---|---|
| A rejected file | The whole file fails the bank's checks and nothing in it settles.1 | The bank's notice names the file and the reason. |
| A rejected payment | An individual payment is rejected after the file is checked, and it still settles between the banks.1 | No later than the business day after the file was checked.4 |
| A returned payment | The customer's bank sends the payment back. | No later than the business day after the part of the bank able to decide receives it.5 |
| A customer's claim on a debit | The customer claims the debit back. | Up to and including 90 calendar days after a personal debit, or 10 business days after a business debit.6 |
| A refused credit | The payee refuses the credit. | Up to and including 90 calendar days after the credit posted.7 |
| A refused correction | The customer refuses a correction. | Within 90 calendar days of the correction posting.8 |
The handling distinction is explained in EFT reject versus return. The customer claim windows for a pre-authorized debit (PAD) are set out in the dispute window guide.
Correcting a sending error
A sender can correct a defined group of sending errors after the original payment. The permitted errors are a duplicate payment, an incorrect amount, an incorrect account number, a cancelled PAD agreement, and a debit that did not follow its agreement. A returned payment cannot be corrected this way.9
The sender delivers the correction as soon as possible after the original payment's exchange. It must be delivered no later than 3 business days after the settlement date.9 The customer then has the refusal window shown above.
Matching
Reconcile by settlement date and match each payment to your own record through your reference. Your reference comes back unchanged on the payment. The bank reference is available when you need to quote a bank's identifier for that payment.
Request the payments that changed since your last check so that new settlements and returns reach your system. A settled debit can still come back until its claim window passes. Match the return to the original payment and reverse that payment in your records.
More detail on return categories is available in EFT return codes and the EFT returns and reconciliation overview.
Tracing a payment
The sending bank can ask the customer's bank to trace a payment when you need information about it. The customer's bank answers within 2 business days for a payment settled up to 30 calendar days earlier. For an older payment, it answers within 5 business days.10
The customer's bank does not have to answer a trace request for a payment of less than $20. It also does not have to answer a request received more than 12 months after the payment's settlement date.10
Sources (10)
- Rule F1, Part V, "Settlement" ↩
- Rule F1, Part II, "Exchange Deadlines and Periods" ↩
- Rule F1, Part II, "Debit Transaction Exchange Dates" ↩
- Rule F1, Part II, "Transaction Edit, Account Validation and Rejected Transactions" ↩
- Rule F1, Part III, "Time Limitation for Return" ↩
- Rule H1, section 24; Rule F1, Part III, "Exceptions to Time Limitation: Payor/Payee Initiated Returns" ↩
- Rule F1, Part III, "Exceptions to Time Limitation: Payor/Payee Initiated Returns" ↩
- Rule F1, Part III, "Time Limit for Error Correction Refusal" ↩
- Rule F1, Part III, "Error Correction Transactions"; Rule F1, Part III, "Time Frames for Error Correction" ↩
- Rule F1, Part IV, "Trace Requests, Tracing Limits and Tracing Procedures" ↩
Questions
When does an EFT settle?
An EFT settles on the business day after its Due Date. If the payment is delivered after its Due Date, it settles on the business day after the exchange.1
Why did a payment come back after it settled?
A bank can return a payment no later than the business day after the part of the bank able to decide receives it.2 A customer can also claim a debit back up to and including 90 calendar days after a personal debit or 10 business days after a business debit, and a payee can refuse a credit up to and including 90 calendar days after it posted.3
How long do I have to correct a payment sent in error?
Deliver the correction as soon as possible and no later than 3 business days after the settlement date. Corrections are limited to a duplicate payment, an incorrect amount, an incorrect account number, a cancelled PAD agreement, or a debit that did not follow its agreement. A returned payment cannot be corrected this way.4
Can a bank trace a missing payment?
The sending bank can ask the customer's bank to trace it. The response deadline is 2 business days for a payment settled up to 30 calendar days earlier and 5 business days for an older payment. The customer's bank does not have to answer for a payment under $20 or a request received more than 12 months after settlement.5
Sources (5)
- Rule F1, Part V, "Settlement" ↩
- Rule F1, Part III, "Time Limitation for Return" ↩
- Rule H1, section 24; Rule F1, Part III, "Exceptions to Time Limitation: Payor/Payee Initiated Returns" ↩
- Rule F1, Part III, "Error Correction Transactions"; Rule F1, Part III, "Time Frames for Error Correction" ↩
- Rule F1, Part IV, "Trace Requests, Tracing Limits and Tracing Procedures" ↩