For most Canadian freelancers billing Canadian clients, Interac e-Transfer is the most practical payment method available. It is free to receive at most banks, instant, and every Canadian has access to it through their bank’s app. Here is when to use it, when to use something else, and best practices for professional use.
What Makes e-Transfer the Default
- Free: Receiving e-Transfer is free at most Canadian banks. The client typically pays nothing or a small fee at their bank. No percentage of the invoice is lost to processing fees.
- Universal: Every Canadian with a bank account can send e-Transfer. No PayPal account, no credit card needed.
- Fast: Deposits arrive within minutes with Autodeposit enabled. No 2–7 day waiting period like Stripe payouts.
- No chargebacks: Once deposited, an e-Transfer is final. Unlike credit card payments, clients cannot reverse the transaction through their bank.
Setting Up Autodeposit (Essential)
Autodeposit allows clients to send money to your email address and have it deposit instantly without you accepting each transfer individually. Without Autodeposit, you receive a notification email with a security question — clients find this friction, and if they get the security question wrong, the transfer fails.
To set up Autodeposit: go to Interac e-Transfer settings in your bank’s app → Autodeposit → Register your email address. Link it to your business bank account. After setup, any client who sends to your registered email address gets immediate, frictionless payment.
Limits: The Main Practical Constraint
Interac e-Transfer limits are set by the sender’s bank, not yours. Default limits at most Big 6 Canadian banks:
- Personal accounts: $3,000 per transaction, $3,000–$10,000 per day
- Business accounts: $10,000–$25,000 per transaction (varies by bank)
- Network maximum: $25,000 per transfer
For invoices over $3,000: ask clients if they use a business bank account (higher limits) or if they can split the payment into multiple transfers. Alternatively, accept EFT wire transfers for large invoices.
e-Transfer for International Clients
Interac e-Transfer does not work for international payments. Non-Canadian banks cannot send e-Transfers. For US clients, you need Wise Business (ACH), Stripe (credit card), PayPal, or wire transfer.
Professional Invoice Wording for e-Transfer
Include clear payment instructions on every invoice:
Payment by Interac e-Transfer:
Send to: [your email address]
Autodeposit enabled — no security question required
Reference: Invoice #[number]
Record Keeping for CRA
For each e-Transfer received, keep: the email notification showing the amount and sender, your bank statement showing the deposit. Most banks include the sender’s message in the deposit record — if clients include the invoice number in the transfer message, this creates a clear audit trail. Encourage clients to include the invoice number in every transfer message.
Frequently Asked Questions
Can I accept e-Transfer for GST/HST invoices?
Yes. GST/HST registered or not, payment method does not affect tax obligations. Invoice for $1,000 + $130 HST = $1,130. Client sends $1,130 by e-Transfer. You record $1,000 as revenue and $130 as GST/HST collected (remit to CRA). The payment method is irrelevant to the tax treatment.
What if a client’s bank has low limits and they can’t send the full amount?
Common solutions: ask them to request a limit increase from their bank (banks will often raise limits with a simple phone call), split the invoice into two or three transfers on consecutive days, or accept payment by EFT (bank transfer / bill payment) where corporate clients often have higher per-transaction limits. For corporate clients, invoicing for EFT payment is standard practice.
Is Interac e-Transfer safe to list on professional invoices?
Yes — including your email address on an invoice for e-Transfer purposes is standard practice in Canada. The risk of publishing an email address for e-Transfer is minimal: a sender needs both your email and your bank’s security question answer (unless Autodeposit is enabled, in which case only authorized deposit is accepted). Use a business-specific email address rather than a personal one for professional consistency.