Everything You Need to Know About EMT (Email Money Transfer)

What is Email Money Transfer?

Email Money Transfer, more commonly known as e-Transfer, is a popular method of transferring and receiving money electronically using an individual's email or phone number. This comes with advantages in speed and convenience compared to traditional money transfer methods, thus its increased usage.

As recently as 2023, a survey of Canadian businesses conducted by Statistics Canada found that 50.00% of all surveyed businesses had integrated EMTs, also known as Interac e-Transfers, as a payment method. This placed it hot on the heels of Cash, which was accepted by 53.4%, and Cheque, which held the highest acceptance rate at 70%.

The EMT method is primed for even more growth as more financial institutions shift towards digitalization and online processes. Given its importance, let us delve into the world of Email Money Transfers and all you need to know about them.

What is Interac e-Transfer?

In Canada, Email Money Transfers (EMTs) are also known as Interac e-Transfers after the company Interac, which facilitates this service through their interbank networks. The two are synonymous and basically refer to the same thing in Canada.

Sending Money with Interac e-Transfer

To send money with Interac e-Transfer, you'll need a Canadian bank account at a participating financial institution, the recipient's name, email address, or mobile phone number, and access to either a banking app or an online banking service. Below is a step-by-step guide to complete your first Email money transfer:

• Sign In: Log in to your online or mobile banking at a participating financial institution and find the option to send money with Interac e-Transfer.
• Select Account: Choose the account from which the funds will be withdrawn.
• Add Recipient: If it's your first time sending money to this person, you'll need to add them as a recipient using their name, email address, or mobile phone number. Ensure these details are correct. The recipient must also have online or mobile banking access at a participating financial institution.
• Set Security Question: In some cases, you'll need to set a security question for the recipient to answer to complete the transaction.
• Enter Amount: Input the amount to send. Transaction limits are set by your financial institution and are typically $2,000 to $3,000 per transaction for consumers. Limits can be higher with Interac e-Transfer for Business.
• Confirm Details: Review the transaction details and send the money for the recipient to use immediately.

How to Receive Money via Interac e-Transfer

Receiving money through Interac e-Transfer is straightforward and can be done in two ways:

• Notification: You will receive an email or text notification about the transaction. If you were not expecting an Interac e-Transfer, verify its authenticity with the sender through another channel.If you don't have Autodeposit set up, click the email or text message notification link and follow the instructions to deposit the money into your Canadian bank account with a participating financial institution. You'll need to answer the security question to complete the transaction.If you have the Autodeposit feature set up, you'll receive a notification indicating that the funds have been automatically deposited into your designated account.

Advantages of EMTs

The main advantage of EMTs like the Interac e-Transfer is their speed and accessibility. They allow you to transfer money to most Canadian individuals and businesses at minimal fees, with no charges when accepting payments.

Email Money Transfers also have a reputation for being secure, with multiple layers of protection, including encryption and authentication processes. The use of a security question adds an extra layer of security, ensuring that only the intended recipient can access the funds.

Limitations of EMTs

Even with its lightning speeds, Interac e-Transfer is not infallible, with its most restrictive feature being the daily limit of $3,000 and weekly limit of $10,000 imposed on users. The Canadian Payment Methods and Trends Report of 2023 observed that this may be why a majority of Canadians still chose to use cheques over online transfers when conducting Peer-to-Peer payments.

Conclusion

The future of Interac e-Transfers looks promising, with several exciting advancements on the horizon. This includes integrating enhanced security features, such as biometric authentication and advanced encryption, to further protect transactions.

The increasing adoption of AI and machine learning in financial services also holds much promise. The vision includes automated payment reminders, smart budgeting tools, and enhanced functionalities for businesses to help streamline payroll and payments and handle customer refunds more efficiently.

As digital payment systems continue to advance, EMTs like the Interac e-Transfer are set to remain the cornerstone of secure and efficient financial transactions for Canadians, adapting to meet the evolving needs of an increasingly digital world.