Are ACH transfers and wire transfers the same in Canada?

If you’ve ever needed to send money, you’ve probably come across terms like ACH and wire transfers. They’re both widely used, but are ACH transfers and wire transfers the same in Canada? Not quite.

We’ll walk you through how ACH and wire transfers work, what sets them apart, and when to use them. Plus, we'll look at how Wise can make it easier and more affordable to send money, both at home and internationally.

What Is an ACH Transfer in Canada?

In Canada, the equivalent of an ACH transfer is called an EFT (Electronic Funds Transfer), and is a common way to move money electronically between Canadian bank accounts.

Widely used for things like payroll, bill payments and routine business transactions, EFTs typically take 1 to 3 business days¹ to process and are often low-cost or free, depending on the bank or payment provider.

Unlike wire transfers, EFTs are processed in batches, which helps keep costs down—though it also means they aren’t instant. For cross-border payments to the US, some Canadian banks offer ACH services in US dollars. For example, CIBC lets businesses send funds to US suppliers or employees for around $10 per transaction², with features like scheduled payments and bulk transfers.

What Is a Wire Transfer in Canada?

A wire transfer is a secure and reliable way to send money electronically—both within Canada and internationally. While EFTs are commonly used for everyday payments, wire transfers are often reserved for larger, time-sensitive transactions.

In Canada, domestic wire transfers are processed through Lynx³, the country’s high-value payment system. International wires are routed through global networks like SWIFT⁴, making them suitable for cross-border payments in a wide range of currencies.

Wire transfers typically arrive the same day for domestic payments, and within 1–5 business days for international ones⁵. However, they often come with higher fees compared to other payment methods. For example, sending a wire from a Canadian bank, like CIBC, might cost between $30–$80⁶, and receiving fees may also apply.

They’re most commonly used for large purchases, business transactions, real estate deals, and international money transfers where speed and getting the most for your money is key.

ACH Transfers vs. Wire Transfers – Key Differences

When to Use ACH vs. Wire Transfers

When ACH (EFT) is the best choice:

• For everyday payments like payroll, utility bills, or subscription services
• When cost savings matter more than speed
• For recurring or scheduled payments between Canadian bank accounts
• When sending smaller amounts that don’t require immediate delivery

When wire transfers are the best choice:

• When you need to send large sums quickly and securely
• For high-value or time-sensitive payments, such as real estate transactions
• When making international transfers that require real-time settlement
• For sending money to recipients outside Canada who can’t receive EFTs

Security considerations for each:

• ACH (EFT): Secure and reliable, but incorrect details can delay processing or cause reversals
• Wire transfers: Highly secure with instant, final settlement—ideal when payment certainty is crucial, but mistakes can’t be reversed once sent

How to Send an ACH or Wire Transfer in Canada

Sending an ACH (EFT) payment

ACH (or EFT) transfers are commonly used for everyday payments like payroll, supplier invoices, and recurring bills. Here’s a general overview of how to make one through online banking:

1. Gather recipient details – You’ll need the recipient’s name, bank account number, and transit number. Always double-check for accuracy.
2. Log in to your banking platform – Navigate to the "Payments" or "Transfers" section and select "EFT" or "Direct Deposit."
3. Create or select a payment group – If you're using a business account, you may need to create a payment group (especially for batch payments).
4. Enter payment details – Input the amount, recipient info, and any notes. You can also schedule recurring payments.
5. Review and confirm – Double-check everything and submit the transfer. You may be asked for two-factor authentication.

Fees and processing times: Most EFTs take 1–2 business days to process. Fees are usually lower than for wire transfers and may be free for personal accounts. Business fees vary.

Sending a Wire Transfer

Wire transfers are typically used for high-value or urgent payments—especially across borders. They’re fast, secure, and final.

1. Collect recipient information – You’ll need the recipient’s full name, bank name and address, account number, and routing details like a SWIFT or BIC code.
2. Access wire transfer services – Depending on your bank, you may be able to send a wire online, by phone, or in person.
3. Enter payment details – Input the amount, destination currency, and fee allocation (you, the recipient, or split).
4. Send and confirm – The money is debited immediately, and once received, the payment can’t be reversed.

Fees and processing times: Domestic wires usually arrive the same day. International wires can take 1–5 business days, depending on the destination.

Here’s what it costs to send a wire transfer from some major Canadian banks:

• RBC: $45+ to send, up to $17 to receive⁹
• CIBC: $20–$80 to send, $15 to receive⁶
• TD: $15 to receive and $50 to send¹⁰

Wire transfers are fast and reliable—but with higher costs and stricter requirements than EFTs, they’re best reserved for large or time-sensitive payments.

Wise – A Smarter Alternative for International Transfers

When it comes to sending money internationally, wire transfers are far from your only option. Wise offers a digital-first way to send money abroad, pay international invoices, or hold multiple currencies with low and transparent fees.

Unlike banks, Wise uses the mid-market exchange rate with no hidden markups. Instead, you pay a small upfront fee that’s clearly shown before you hit send. For many transfers, that fee starts from just 0.48%¹¹.

You can also open a multi-currency account, which lets you hold, convert, and receive money in over 40 currencies. You’ll get local account details in 23 different currencies, including CAD, USD, GBP, and EUR—so you can get paid like a local without paying extra.

And because Wise isn’t a bank, there are no monthly fees, no foreign transaction fees on your card, and no surprises.

Wise vs. Wire Transfers – International Money Transfer Comparison

Final Thoughts on ACH and Wire Transfers in Canada

ACH transfers (or EFTs in Canada) and wire transfers both offer secure ways to move money. ACH is frequently used for routine, domestic payments like payroll or recurring bills, thanks to its low cost and batch processing. Wire transfers, on the other hand, are better suited for large, time-sensitive, or international transactions where speed and guaranteed delivery matter.

Choosing the right method depends on how fast the funds need to arrive, how much you're sending, and where it’s going. If you’re looking for a more cost-effective and flexible alternative—especially for international transfers—Wise offers a transparent, digital-first solution with multi-currency support, low fees, and mid-market exchange rates.

Sources:

1. What is an EFT Payments | Trust Payments
2. Business payment methods | CIBC
3. Wire payments
4. SWIFT vs. Global ACH
5. How to Send Wire Transfers in Online Banking or Mobile App
6. Sending and Receiving Wire Transfers | CIBC
7. EFT Group Recall/Reverse
8. Western Union blog - Wire transfer reversal
9. Additional Account Services - RBC Royal Bank
10. Personal Fee Schedule
11. Wise Fees & Pricing: Only Pay for What You Use