Are EFTs/wire transfers between banks safe/guaranteed in Canada?

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Hogwild
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Are EFTs/wire transfers between banks safe/guaranteed in Canada?

Post by Hogwild »

Hi:

I need to do a couple of large transfers (~100K). Zag will not do smaller EFTS/wire to another bank unless I open a HISA account. I don't want to open another account, but I want safety in my transfer(s). Are large EFTs and wire transfers of the above magnitude and wire transfers between CDN banks safe/guaranteed?

I ask only because of some of the horror stories I've read about inter-brokerage transfers. Yeah, I know it's not the same thing, but that's why I'm asking.

Thanks in advance.
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Re: Are EFTs/wire transfers between banks safe/guaranteed in Canada?

Post by Hogwild »

Good heavens...I've stumped the forum!
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Re: Are EFTs/wire transfers between banks safe/guaranteed in Canada?

Post by AltaRed »

You have not articulated what you are really trying to do, i.e. from what kind of account/FI to what kind of account/FI. Are you trying to do this at zero cost (as in a push or pull transfer between an online bank and a big 5) or via wire transfer?

I've never known a wire transfer to go astray if the coding is right and have never known a push/pull electronic funds transfer to go astray. Worst case... write a cheque from an account in one FI and deposit it in the account of the other FI. I've done that as well, although only when moving money to/from Canada/USA accounts.

For me to get money between my BMO IL and Scotia iTrade brokerage accounts, I use Bill Payee methodology. Meaning I move BMO IL money via the MyLink chequing account with a Bil Payee to my Scotia iTrade brokerage account. Similar in reverse, I use my Scotia chequing account to Bill Payee funds to my BMO IL brokerage account.
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Re: Are EFTs/wire transfers between banks safe/guaranteed in Canada?

Post by IdOp »

I was planing to reply, but since I couldn't answer exactly your question about guarantees, was waiting to see if someone else could. Then when noone did, I of course forgot about the thread. :oops:

I don't know if there is any guarantee, but haven't heard of anyone losing money due to EFT mistakes. Earlier this year I requested one from TDDI to my external chequing account, and they screwed it up somehow. A couple of days later the money was returned to the source account.

A practical suggestion would be to first make a small EFT ($10 or $100, whatever) and make sure it arrives OK. That would show the system works and that the right account numbers are on file. Then do your large transfer. If something goes wrong, you have proof that "it worked before and I requested the same thing," and therefore the error was not your fault.
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Re: Are EFTs/wire transfers between banks safe/guaranteed in Canada?

Post by BRIAN5000 »

Just at Coast Capital they say these kind of transactions are where most fraud occurs did not get hem to elaborate YVMV.

They said the only way to get them large sums of money online is a wire transfer will ask in another thread.
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Re: Are EFTs/wire transfers between banks safe/guaranteed in Canada?

Post by Hogwild »

Hi:

Thanks. As I said in the OP, Zag was not willing to do multiple, smaller transfers unless I opened a HISA account as well. Since I already have way too many accounts (working on fixing that), I didn't want to open another one.

I don't know if they'll do wire transfers. Certainly not without a fee, but not sure they'll do them even for a fee. Aren't those still about $30.00 each, BTW?
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Re: Are EFTs/wire transfers between banks safe/guaranteed in Canada?

Post by AltaRed »

One of the downsides that come with online banks is lack of a full suite of services. You get what you pay for, or in this case, what you don't get for the privilege of higher returns on deposits. Wire transfers will always cost money due to the manual intervention involved. Don't whine about it.

P.S. Do you not already have a Zag account if you have money there? I transfer money in/out up to about $50k at a time via push/pull from Zag on a regular basis.
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Re: Are EFTs/wire transfers between banks safe/guaranteed in Canada?

Post by mewmew »

AltaRed wrote: 19 Feb 2018 12:03 You have not articulated what you are really trying to do, i.e. from what kind of account/FI to what kind of account/FI. Are you trying to do this at zero cost (as in a push or pull transfer between an online bank and a big 5) or via wire transfer?

I've never known a wire transfer to go astray if the coding is right and have never known a push/pull electronic funds transfer to go astray. Worst case... write a cheque from an account in one FI and deposit it in the account of the other FI. I've done that as well, although only when moving money to/from Canada/USA accounts.

For me to get money between my BMO IL and Scotia iTrade brokerage accounts, I use Bill Payee methodology. Meaning I move BMO IL money via the MyLink chequing account with a Bil Payee to my Scotia iTrade brokerage account. Similar in reverse, I use my Scotia chequing account to Bill Payee funds to my BMO IL brokerage account.
Does the "Bill Payee methodology" support 3rd party cash transfer?
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Re: Are EFTs/wire transfers between banks safe/guaranteed in Canada?

Post by BRIAN5000 »

I transfer money in/out up to about $50k at a time via push/pull from Zag
Or more I know at the minimum $99800 can be transferred out with one transaction, the transactions are very slow to post over a day and you can't see it pending very poor software.

We're done with ZAG closing accounts.
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Re: Are EFTs/wire transfers between banks safe/guaranteed in Canada?

Post by AltaRed »

I agree the Zag website is pretty wonky but have never failed to get a transfer after one full business day, i.e. if I initiate a transfer right now, it will be in my receiving account on Friday. Works for me. The only one I have seen slightly faster was PCF (no Simplii).

P.S. I have wound down all my online accounts to only one, and it just happens to be Zag. I might transfer money once every 2-3 months in/out of the HISA so it is not worth changing to anyone else.
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Re: Are EFTs/wire transfers between banks safe/guaranteed in Canada?

Post by Hogwild »

Well, it was suggested to me at a gov't agency that I contact the Canadian Payments Association to get some type of answer to my question. I emailed a woman there. First email-no reply after 1 week. Second email, I get an auto-responder email saying she is away for a week or two and will return emails when she comes back in. She replies, asking what the question was (too lazy to look through older emails are we?). Third email was a copy of the original email. Then I get a reply stating she is now on maternity leave for a year. Or so.

Wow, impressive.

LEt me guess, the Canadian Payments Association is an industry-led and funded group?
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