It’s in the e-mail: Transfer funds online
Send cash in a flash through this secure banking system
By Maureen Halushak
It’s the online banking service that most Canadians know the least about. E-mail money transfers are a simple, speedy and secure way to send money in minutes. The online banking transaction is similar to an account-to-account transfer. You need only to specify an amount and enter the e-mail address of your recipient.
“I send e-mail money transfers about five times a month through my bank,” says Maritia Gully of Ottawa. She uses them most often for funds owed to friends. “I’ve saved a lot of cheques by using this service, and it’s more convenient because the money is taken from your account immediately.”
Gully also frequently receives money through e-mail transfers. “Interac money transfers make buying tickets for group events — like concerts and hockey games — much easier.”
The next time you need to send cash in a flash — for a holiday gift, a belated birthday or your favourite cash-strapped student — drop your pen and cheque book and go online instead.
Sending an e-mail money transfer
Canada’s five biggest banks offer e-mail money transfers through their financial network, Interac. The process for sending an e-mail transfer is virtually identical at all five institutions:
“The process is very simple,” says Sara Feldman, vice-president, communications and marketing for Interac Email Money Transfer service. “The sender fills in the amount, recipient’s name and e-mail address, a short message and a security question and answer.”
The cost to send varies depending on your bank and service plan, and you can only transfer Canadian funds.
Recipients who bank online can access the funds the moment they receive the notification e-mail. The recipient must have an account at a Canadian financial institution, but he or she does not have to bank online to access the money.
Those who aren’t set up online can visit a secure web site to arrange for an electronic funds transfer (EFT) to their bank or credit union. This alternative arrangement to the standard services takes about three days to process and carries a fee of $2.50.
Setting up the notification e-mail
The money pros agree that the security question and answer are a crucial element of any e-mail money transfer. “Even if the e-mail address is incorrect, the recipient must know the security answer to access the money,” says Akeela Davis, a certified financial planner at Arista Asset Management in Vancouver.
For this reason, Bob Grant, Scotiabank’s senior vice-president of electronic banking, cautions clients not to make reference to the security question and answer within the transfer’s e-mail message. “Even if someone else somehow gains access to your e-mail inbox, they won’t be able to answer the security question,” he says.
But don’t get too complicated. “The security question and answer need to be clear and are case-sensitive,” says Gully, speaking from experience. “Your recipient only has three chances to get it right before the transaction is cancelled.”
Dispelling security concerns
E-mail money transfers are as safe as any other online banking service. “Transfers occur within secure online banking sessions, through regular banking channels,” says Grant. “The e-mail message simply serves as a notification that someone is sending you money.”
If you change your mind about the funds, Interac money transfers can be recalled at any time — provided that the recipient hasn’t already accessed them.
Davis gives Interac money transfers a thumbs up: she’s a frequent user. “In many ways, it’s like sending a certified cheque,” she says.
Sending other currencies
American-based PayPal and Vancouver-based hyperWALLET offer the option of sending e-mail money transfers in several currencies to countries other than Canada. However, both services require users to create a “wallet” of funds that can take several days to set up, so your money may take longer to reach its intended recipient.
