The Top 3 Challenges of Accepting Canadian EFT (and How to Beat Them)

Canadian EFT processing is very similar to American ACH processing. In fact, they are both methods of moving funds between accounts and can be handled by a payment processor that is reliable, trusted and secure.

Businesses don’t need to be located in Canada to process EFT payments. EFT processing is just another payment option that you can offer customers, who might want to move money to Canadian bank accounts or between them. Because of this, a few processors offer Canadian EFT processing with many of the same benefits of their American ACH processing.

For example, ACH processing is an efficient payment method, speeding up the billing process at a lower cost than credit card processing. Likewise, Canadian EFT can boast the same benefits. Funds are collected and disbursed between accounts quickly and reliably using secure methods, much faster than traditional paper checks, and it is a cost-effective method of transferring funds.

However, processing Canadian EFT payments comes with its own set of challenges. Luckily, there are ways to handle these challenges that any business can implement.

  1. Routing numbers

Canadian routing numbers must be created with the MICR code from the financial institution preceded by a zero. The last three digits of the code are moved to the front after the zero. For example, if a bank’s MICR code is BBBBB-AAA, then the routing number needs to be 0AAABBBBB.

There are several ways to approach this. First, you could use a product like Forte Checkout and manually change the routing number. If your staff enters transactions themselves, you’ll need to train them. If your customers enter them, they’ll need to be informed.

Another option is to integrate directly using something like Forte’s AGI. If you choose this method, you can set things up on the backend to automatically create a Canadian routing number when processing. This is a great option for integrated partners like software companies.

  1. Re-presentment

In Canada, an item that needs to be re-presented due to NSF can only be re-presented one time, as opposed to two times in the U.S. However, you can still take advantage of smart re-presentment and attempt to recollect funds.

Smart re-presentment will strategically present items on days that it is more likely for successfully collection, such as a pay day. Using a tool like this can help you collect the funds you lost due to non-sufficient funds. It can also, in some cases, help you recover a portion of the NSF fee.

Re-presentment tools can easily be used for Canadian EFT processing, just be aware of the single re-presentment and use a smart, strategic one to maximize your opportunity to recollect.

  1. Finding a processor

Perhaps one of the hardest challenges to processing Canadian EFT, especially if you are a U.S.-based company, is finding a processor that will work with you. Fortunately, there are several that offer both ACH and EFT processing. We’re one of them.

To help narrow down your choices, you can learn about some of our top features here. You’ll want someone who is secure, reliable and trusted in the ACH/EFT processing world. It also helps to have additional perks, like competitive pricing and solid uptime.

Processing Canadian EFT comes with its own set of challenges, but they can be overcome. It helps to work with a payment company that understands these hurdles and has the solutions to help you handle them.

To learn more, start here.

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