EFT, ACH, or Wire? The Ultimate Guide to Cross-Border Payments

As businesses expand across borders, working with international clients, contractors, or suppliers is becoming more common. But when it comes to moving money between countries, especially across the Canada-U.S. border, the process can be trickier than expected.

Many business owners are familiar with EFT payments in Canada or ACH transfers in the U.S., but may not know which methods work across borders, how long they take, or what they really cost. Choosing the wrong method can lead to delays, unexpected fees, or failed transactions.

This guide breaks down the key differences between EFT, ACH, and wire transfers, so you can choose the most efficient and cost-effective payment solution for your business, whether you’re sending money, receiving payments, or managing multiple currencies.

What Is EFT?

EFT (Electronic Funds Transfer) is a Canadian system for moving money between domestic bank accounts. It’s commonly used for things like payroll, supplier payments, and recurring invoices. EFTs are typically completed within one to two business days and are low-cost or free with most Canadian banks.

EFTs are deeply integrated with Canadian online banking and accounting platforms, making them ideal for automating recurring business payments. However, EFTs only work between Canadian financial institutions, you can’t send or receive EFTs from U.S. accounts. For that reason, they’re only useful for domestic Canadian transactions.

What Is ACH?

ACH (Automated Clearing House) is the U.S. counterpart to EFT. It enables domestic bank-to-bank transfers between American accounts and is widely used for payroll, vendor payments, and recurring billing.

ACH transfers typically take 1–3 business days, although same-day ACH is available for a higher fee. Like EFT, ACH is an affordable solution for domestic payments, but it does not support direct transfers to or from Canadian accounts. For a Canadian business to receive ACH payments, they need a U.S.-based bank account.

That said, if you operate in both countries or have a U.S. client base, setting up a U.S. account to receive ACH can reduce costs and simplify repeat billing.

What About Wire Transfers?

Wire transfers are a direct, real-time way to send money between banks, both domestically and internationally. Unlike EFT and ACH, which are processed in batches, wire transfers are sent individually and typically arrive on the same business day.

For context, it’s important to note that wire transfers and e-transfers (like Interac) are not the same. Interac is designed for quick, low-cost personal and business transfers within Canada, while wire transfers rely on global bank networks such as SWIFT to send money across countries and currencies.

Wire transfers are more expensive, typically $15 to $50 per transfer depending on your bank and destination, but they offer speed and reliability. They are often used for:

• High-value international invoices
• Urgent contractor payments
• Secure transactions that must arrive on time

Because they are irreversible once sent, accuracy is essential. But for time-sensitive or cross-border business transactions, they remain the most dependable option.

What happens when currencies don’t match?

If the currency being sent doesn’t match the currency of the receiving account, most banks will automatically convert it upon arrival, often at a less favourable exchange rate. For example, if a U.S. client wires USD to a CAD account, the bank will convert the funds to CAD by default. To avoid this, make sure your client wires funds to a USD-denominated account if you want to hold or invoice in U.S. dollars.

Making Cross-Border Payments Work Both Ways

Whether you’re getting paid by U.S. clients or paying U.S.-based contractors or suppliers, it’s important to understand the limitations of domestic payment systems. ACH transfers can’t be sent to Canadian EFT accounts, and vice versa. Neither system supports true cross-border movement.

So how do Canadian businesses manage U.S. payments effectively?

Here are the most common solutions:

• Wire transfers: Fast and reliable, but come with higher fees on both ends
• Third-party platforms: More affordable, often with better FX rates and accounting integrations
• Canadian-based USD business accounts: Let you receive and send USD via wire transfer without automatic currency conversion
  (Note: this is still a wire transfer, not ACH or EFT)

Some Canadian banks also offer enhanced business platforms that include U.S. payment features, allowing you to send domestic-style payments in USD from Canada. This setup can help avoid repetitive wire fees and streamline recurring transactions.

Many businesses are turning to third-party platforms for their flexibility, automation, and QuickBooks integrations, which make cross-border payments easier to manage without opening a U.S. bank account.

EFT vs. ACH vs. Wire: What’s the Difference?

While all of these are electronic payment methods, they serve different purposes and operate on different systems. Here’s a quick comparison to help you determine which is right for your situation:

Payment Method Comparison

None of the above methods require a third-party platform to be completed, but tools like Bambora can make cross-border payments easier, cheaper, and more automated, especially if you’re managing recurring transactions or multiple currencies.

Choosing the Right Payment Method

The best cross-border payment solution depends on how often you transact, who you’re working with, and which currencies you need to support.

• EFT and ACH are cost-effective options for domestic transfers within Canada and the U.S., respectively.
• Wire transfers offer speed and security for cross-border transactions but come at a higher cost.
• Third-party platforms can offer flexibility, automation, and competitive exchange rates, especially useful for repeat payments or multi-currency workflows.

For businesses navigating payments between Canada and the U.S., taking the time to understand these tools can lead to fewer delays, lower fees, and stronger financial workflows.

Where Rescue Payments Fits In

At Rescue Payments, we work with Canadian merchants who operate in both CAD and USD. While we don’t process cross-border bank transfers directly, we support the tools and partnerships that make them easier, from invoicing and virtual terminals to surcharge strategies and accounting integrations.

We believe that cross-border payments shouldn’t be confusing, and that financial literacy is a key part of running a stronger business.