In Canada, most electronic transfers of money are called E-transfers, so this terminology is heuristically functional; however, there are a cluster of related terms which have subtly different connotations. If you are going to be working in the financial sector or have financial responsibilities at your workplace, these distinctions may be more relevant.
An email money transfer or electronic money transfer (EMT, E-transfer) refers to a transfer between individuals via email or text. In Canada, most e-transfers are facilitated by Interac (the company which does debit cards with banks) and are branded as such. Usually funds arrive within half an hour. The recipient then deposits the transfer into their preferred account. Don't worry - though the transfer is initiated via email or text, the funds are actually sent through existing bank networks.
An electronic funds transfer (EFT) refers to a non-paper transfer either within a single financial institution or within multiple institutions. It can also involve multiple accounts. This can include ATM withdrawals, direct deposits, and automatic bill payments. EFTs can have hold periods before you can withdraw your funds but also allow for larger withdrawals (think $3000+).
A wire transfer is a direct transfer from one individual to another. These funds cannot be retrieved, which is why wire transfers should only be sent to people you know and trust. Wire transfers are thus a popular way of scamming people - think those Craigslist ads for apartments where the owner is "away doing missionary work" and wants you to wire the deposit.
Comments