Issue

A particular benefit centred on the attributes of non recourse. Recently some have complained of cancelled payments despite the funds being in their bank account.

Introduction

E-Transfer (previously Certapay) was introduced in Canada in 2002. Fraud checks were implemented behind the scenes by the sending institution, manual at first and increasingly automated.

The automation in most larger institutions has been integrated with their overall customer fraud reviews resulting in immediate payment in most cases.

It is generally understood fraud checks precede payments. The caveat sits with the usual small print warnings that apply to most transactions whereby banks reserve rights of cancellation for longer periods.

Source CBC

TD Bank customer lost $480 after e-transfer cancelled

Discussion

Real-time payments have been available in Canada since the launch of Interac e-Transfer in 2002. The adoption and use of real-time payments steadily gained traction over the last few years, thanks to the wider participation by more than 250 financial institutions as of December 2021, and a continued preference for electronic payments among consumers.

RBC as an example have included Interac e-Transfers in their security guarantee.

The recently reported example of cancelled payments have been analysed by Go Public and there are distinctions apparent in their analysis between payments involving Sched 1 banks and others such as Credit Unions; Credit Unions tend to have slower less sophisticated fraud management or have it outsourced.

The Mason example has an individual with autodeposit selling tools to a stranger. The stranger cancelled the payment and the payment reversed. The confirmation number was witnessed by Mason and the stranger on his app. Her own subsequent investigation uncovered the sending credit union cancelled the payment 30 mins after payment confirmation.

Go Public investigation is reported on CBC (link below)

Go public tested several payments and discovered cancellation was possible.

Go Pubic conclusion:

”You can’t just trust your own bank. You have to trust the sender’s.”

The CBC article goes on to conclude following an email with Interac.

A spokesperson for Interac declined an interview request, but responded by email.

“It is more related to the fraud checks happening by the sending and receiving financial institutions before the transaction is approved,” wrote Interac..

“Each bank or credit union makes their own decisions regarding which checks to complete, and therefore how much time might be required.”

Conclusion

It is difficult to be definitive in an example of one set of analysis but it is clear that with 270+ active financial institutions there are variances with their fraud processes and timings

People need to be very careful in their dealings with strangers.

I would also add here they should verify the applicability and terms and conditions of Interac e-Transfer at their financial institution for commercial transactions.

Full CBC article

TD Bank customer lost $480 after e-transfer cancelled — despite having autodeposit