Electronic funds transfer
An electronic funds transfer, or EFT, is the electronic movement of money between accounts, such as a direct deposit, pre-authorized debit, wire transfer or online payment. It is a banking and payments term rather than a legal one. The legal rules come mainly from the account agreements and payment system rules that govern each type of transfer.
How BC law treats it
In Canada, payments are federally regulated. Payments Canada, formerly the Canadian Payments Association, operates national payment systems under the Canadian Payments Act, RSC 1985, c C-21, and payment service providers are supervised by the Bank of Canada under the Retail Payment Activities Act, SC 2021, c 23, s. 177.
What it means for your business
A business should verify any change in a supplier's payment details by phone before sending funds.
Risks and common mistakes
Payment diversion fraud, where a criminal sends false bank details, often leaves the business that paid bearing the loss.
For the full explanation, see our entry on Electronic contracts.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
