Transfer money

This article describes several methods of how to transfer money in Canada.
==Commonly used methods==
Apart from using debit cards or credit cards in stores or online, the following methods are commonly utilized.
===Cash===
You can pay in cash if both parties agree. This is usually the best way for small amounts person to person. Get a receipt if necessary. Large cash transactions, currently $10,000 or moreWhat Must Be Reported: Large Cash Transactions - FINTRAC - Financial Transactions and Reports Analysis Centre of Canada, viewed November 15, 2013., may result in the receiving party being subject to additional reporting to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
===Cheque===
To write a cheque you need to open a chequing account at a financial institution. You will usually get some free cheques when you open the account. If you run out, you can order more from the financial instituion or third party cheque providers.
To fill out the cheque you write in the date and to whom you want to pay the money. If the date is later than today it's called a "post dated cheque". Financial institutions aren't supposed to cash these before the date but they can make mistakes.
If these are unpersonalized cheques then you can fill in your name at the top as well.
Next you write the amount in numbers. This amount will be paid in Canadian dollars to the recipient by your financial institution. At the same time they will withdraw the money from your account so you must have at least that amount in your account.
Below that you spell out the amount in letters. You do this so people can't change the amount. That's why you also draw a line through unused portions.
You can write yourself a memo to remind you what the cheque was for, ie. 'Rent sep 2013'
Sign the cheque. Use the same signature you used when opening the account. 
The numbers along the bottom are cheque number, Branch number (called transit sometimes), Bank number (eg. BMO is 001), Your account number.
Your financial institution will make a photocopy of the cheque after it's been paid and return it to you, or make it available online. There are free options for this so make sure you have the service level that suits your needs. For most people free cheque images are available with a paperless (online) account.
If someone sends you a cheque made out to your name then you can just deposit it in your account. If you sign the back of the cheque then anyone can deposit it in their account. That's called a "third party cheque" and some financial institutions may not allow it. One option is to write "For deposit only" and your account number. Then the cheque can only be deposited to your account and if someone finds it they can't try and forge your signature on the back.
Most financial institutions offer US dollar accounts and you can get cheques that are payable in US dollars. You can't pay someone in US dollars if you use a Canadian dollar cheque.
===Online bill payment===
Online bill payment is a way to transfer money from a chequing account at a Canadian financial institution to a long list of potential payees. 
According to the Canadian Bankers Association, 48% of Canadians use online bill payment as their primary tool for paying bills.Canadian Bankers Association, Canada’s Efficient and Secure Payments System, viewed January 4, 2016
This method can be used to pay utility or insurance bills; credit cards; federal, provincial and municipal taxes; etc. Online bill payment can also be used to transfer money to investment accounts at other institutions.
===Email or text transfer===
Interac e-Transfer is a quick way to transfer money between two Canadian bank accounts, without having to know the recipient's banking details. The sender logs on to online banking and uses the "Interac transfer" (or similar) function. The sender enters the name of the recipient, the amount, a security question, and either the recipient's email address or cell phone number. The recipient gets an email message or text message, which contains a link. The recipient then follows instructions to log in their bank account, answer the security question, and accept the funds.Interac, Interac e-Transfer, viewed January 15, 2021.
The money does not travel by email or text message, but instead, "the receiving and sending bank or credit union transfer the funds to each other using established and secure banking procedures".Interac, How Interac e-Transfer security works, viewed January 15, 2021. It is important that the answer to the security question be very difficult to guess and be sent securely to the recipient.
==Less common methods==
Other methods to transfer money are sometimes needed.
===Certified cheque===
A certified cheque is a cheque for which the bank verifies that sufficient funds exist in the account to cover the cheque, and so certifies, at the time the cheque is written. Those funds are then set aside in the bank's internal account until the cheque is cashed. This prevents bounced cheques. The cost at a big-5 Canadian bank is typically about $10-20.
===Bank draft===
A bank draft is a special cheque provided to a customer of a bank or acquired from a bank for remittance purposes. Unlike writing a regular cheque, when an individual requests a bank draft they must immediately transfer the amount (plus any applicable fees and charges) from their own account to the bank's account. This prevents bounced cheques.
Bank drafts are available in Canadian dollars, US dollars, and other currencies. The cost at a big-5 Canadian bank is typically about $7-15 for CAD or USD drafts.
===Money order===
Canada Post offers money orders, defined as a "prepaid negotiable document purchased at a post office for the transmission of funds between a payer and a payee".Canada Post, Money Orders, viewed January 6, 2015 In January 2016 the maximum amount you can send with a single money order is $999.99 CAD or USD and the fee is $7. For larger transactions several money orders -- each with a separate fee -- can be combined.
Other companies also offer money orders in Canada.
===Electronic funds transfer===
An electronic funds transfer (EFT) is the electronic exchange of money between accounts. It can be within a single financial institution or between different financial institutions. Canadian financial institutions either transmitting or receiving funds in excess of $10,000 are required to report these transactions to FINTRACElectronic Funds Transfers Report - FINTRAC - Financial Transactions and Reports Analysis Centre of Canada, viewed November 15, 2013.
===Wire transfer===
A wire transfer is a method of electronic funds transfer from one person or entity to another. A wire transfer can be made from one bank account to another bank account or through a transfer of cash at a cash office. Wire transfers are often used to send money overseas. Most international transfers are executed through the SWIFT network. The cost of sending a wire transfer at Canadian banks is in the tens of dollars, plus a hidden fee of several percent on the exchange rate, if applicable.
There are now FinTech alternatives to traditional wire transfers, with much lower fees. The advantage of these new money transfer companies is that the forex fees are reasonable and transparent, typically ≤0.5-1% depending on the currencies involved.
==See also==
* Currency conversion foreign exchange
==References==
==Further reading==
* 
==External links==
* Canadian Banking Association, Cheques – What You Need to Know
* Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Financial transactions that must be reported
* Payments Canada, Issuing or Receiving Cheques
* Payments Canada, Wire Payments
* Royal Bank of Canada, Understanding banking in Canada
Category:Financial management
Category:Foreign exchange
Category:Personal finance