How To Cancel E-Transfer

How to Cancel E-transfer

Did you send an e-transfer and instantly regret it? Your e-transfer may have been meant for another recipient, or it could be an error that needs to be reversed.

If you’re wondering how to cancel a pending e-transfer or one that has been processed, there are a few options available, depending on the nature of the transaction and its status.

How To Cancel E-Transfer - Comparewise

When Can an E-Transfer be Reversed, and When is it Not Possible?

E-transfers are done through your bank account or financial institution, and Interac, the third-party company, processes that transaction from one account to another. It’s a convenient service that usually costs little or nothing in fees, depending on your banking account plan with your financial company.

E-transfers are typically fast and process within thirty minutes or less. In most cases, an e-transfer is immediate, which means the recipient of the funds will be notified of an incoming deposit and must decide whether to accept or decline the deposit.

If you send an amount and it is pending the recipient’s approval, you have an opportunity to cancel the transaction while it is at this stage. However, it cannot be reversed once the funds are accepted and successfully deposited into the account.

If the recipient has auto-deposit, a feature that automatically deposits funds sent by e-transfer without prior approval, there is no option to reverse the transaction. There are a few other instances where reversals may be possible, such as if the incorrect banking information or email is used, which can result in the funds automatically returning to your account.

However, this may take a few business days. You may be able to reverse this transaction on your own if it shows as pending, or you can contact the bank to request this e-transfer be canceled or reversed.

How To Cancel An E-Transfer - Comparewise

How to Cancel a Pending E-transfer

If your funds have not yet reached your recipient’s account and you are waiting for approval, the transaction will remain in pending status. At this stage, you can easily cancel the e-transfer from your online banking account or banking app with a few simple steps.

In most cases, the pending transaction will appear under the “transfer” menu, which is listed as pending. You can either highlight or select this transaction and choose cancel as an option, which removes the transaction and returns the funds to your account.

How to Cancel an E-transfer That’s Been Sent

If an e-transfer is already sent but hasn’t been deposited through your recipient’s account, you can cancel it as it’s still pending. When an e-transfer is processed, Interac links your bank account through your email and your recipient’s email.

They will receive a message that a transaction has been sent and will be asked to approve or decline the funds. Before they make a decision, the funds, while seemingly processed on your end, are still in transit and can be canceled anytime as long as you quickly access your online banking or app to process the reversal.

Many banks provide a window of opportunity to cancel a pending e-transfer that has not yet been deposited to the receiver’s account without charging a fee. TD, for example, doesn’t charge a cancellation fee if the reversal is processed within the first forty-five minutes of the transaction, which is ideal if you quickly realize that the e-transfer was an error or was sent to the incorrect recipient.

Any canceled or reversed e-transfers completed outside of this timeframe are usually subject to a fee, which typically costs around five dollars.

Alternatives to Cancelling or Reversing E-transfers

If you cannot access online banking to process the reversal, you can call your bank’s toll-free number to request cancellation within the allotted timeframe. This usually works, provided the recipient does not approve the funds for deposit in the meantime.

Suppose the recipient suspects the deposit request is an error. In that case, they can decline the deposit, or you can call to discuss the situation and ask them to cancel or decline the e-transfer, which effectively returns the funds to your account immediately.

When you send funds from certain types of accounts, cancellations are free. These include lines of credit, investment accounts, tax-free savings accounts, and certain types of chequing or savings accounts.

If a business account has multiple account holders, and there is more than one debit or credit card issued, each account holder will have the option to cancel the e-transfers they send. A record of these transactions will appear in the account activity list.

How Long Does An E-Transfer Take - Comparewise

How to Avoid Problems with E-transfers, and the Need to Cancel

While mistakes happen when you process a transaction, whether it’s a bill payment, deposit, or e-transfer, there are some steps you can take to avoid issues that may lead to canceling a transaction, which can be challenging at times.

For example, if you have auto-deposit, any e-transfers sent to your account will be deposited immediately without needing to approve or decline the amount. Following this deposit, you’ll receive a notification by e-mail, which indicates the funds are already in your account, the exact amount, and the sender’s information.

Autodeposit is an excellent option if you’re the recipient of funds, though it’s essential to take precautions when sending funds to someone with this feature.

When you process an e-transfer, you’ll notice a message that indicates the recipient has auto-deposit, which means once you hit “send,” the funds can no longer be retrieved or canceled. If you suspect that the funds were incorrectly transferred and there is no auto-deposit notice, it’s best to contact your bank and request an investigation, if possible.

Always send funds to reputable sources and people you know. For example, never send funds to a new email address from someone who wants to sell you a service or product without receiving it. This may occur when you shop online classifieds and agree to send the agreed-upon payment by e-transfer.

While this is a good option if you meet the seller and receive the product at the same time as the purchase, it’s essential to be cautious if you don’t know the person or company.

If you prefer to skip auto-deposit, using a strong password is essential to prevent fraudulent activity or unauthorized access to your account. It’s also a good idea to change the passwords every time you use the service to strengthen your account’s protection.

Ideally, e-transfers are best suited for people you know and trust so that there are little or no problems in dealing with mistakes.

Sending E-transfers to Bank Accounts Outside of Canada

It cannot be processed if you send an e-transfer to a recipient with an email but a bank account that’s not with one of the Canadian banks or financial institutions. When this happens, you might have the option of canceling the e-transfer, or you can attempt to contact the receiver and ask them about the transaction.

Suppose you cannot reverse or cancel this transaction, and the funds cannot be successfully deposited. In that case, the e-transfer will automatically expire in thirty days, and the funds will return to your account.

An e-transfer transaction must be sent from one Canadian-based bank account to another for the transmission to be successful.

Banks with E-Transfer and Interac Services

Before you send any e-transfers to an account, confirming that the recipient’s account is Canadian and with an institution that accepts and processes Interac transactions is best. If a bank or credit union doesn’t work with Interac, you won’t be able to send or receive transactions successfully, even if your bank does.

Fortunately, nearly all central banks and financial companies, including most credit unions, accept Interac e-transfers, which makes this a highly convenient option for transferring funds between banks.

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FAQs about How to Cancel E-Transfer

What can I do if I send an e-transfer to the wrong person?

If the e-transfer is still pending once you realize the error, you can quickly cancel it online or on your app, and the funds will return to your account immediately. If the recipient has auto-deposit, it’s best to contact them directly and ask them to send the funds back, if possible.

How long do I have before an e-transfer is processed?

This depends on if the transaction is already processed and received by the recipient. If you have a pending transaction that hasn’t yet been received, you can cancel anytime, but it’s best to do this immediately. Typically, e-transfers can take up to thirty minutes to fully process, even once approved, though most e-transfers happen quickly or instantly. The recipient will be notified by email, text message, or both.

If I send an e-transfer to an invalid email address, can I reverse or cancel it?

Yes. You can either cancel it if the option is available or edit the recipient’s email before you resend or complete the transaction. In most cases, these e-transfers will remain in the pending status, as no valid account is attached to an invalid email address, and the funds will be held until the transaction is reversed.

What will happen if the recipient doesn’t have an auto-deposit and refuses the deposit?

The funds will automatically return to your account once the e-transfer is declined. If you’re concerned about the refusal, you can contact the recipient to discuss why they did not accept the deposit. They may think the transfer isn’t legitimate and may become extra cautious if they’re unfamiliar with e-transfers. Also, if the amount of money sent was incorrect, the refusal could mean that the correct (or agreed-upon) amount needs to be resent.

What happens if the funds aren’t deposited because the recipient forgot the answer to the security question?

If your recipient doesn’t have auto-deposit, they won’t receive the funds until the security question is answered. When they answer incorrectly, the money will return to your account, but ideally, it’s best to let the recipient know the answer to the question before you send an e-transfer. When you receive an e-transfer without auto-deposit, you’ll have three attempts to answer the security question before it is canceled. If you answer once or twice incorrectly, it’s best to contact the sender to confirm the correct answer and prevent disruption in the transaction.

What is auto-deposit?

Autodeposit is a service that allows you to accept e-transfers without answering a security question. If you send funds to someone with this feature, it’s essential to check your translation before you send it to ensure it’s correct and there are no errors, as it cannot be reversed.

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October 25, 2022
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