EFT and pre-authorized debit (Canada's bank-to-bank rail)
Canada's bank to bank rails usually move money on flat per item pricing, and most businesses that fit them have never been offered them. For large invoices and recurring relationships, EFT and PAD are the rail built for the job.
- Settlement
- Commonly one to three business days, slower than cards, priced flat per item
- Cost basis
- Usually flat fees per transaction regardless of invoice size rather than a percentage of the sale
- Best for
- B2B invoices, rent and retainers, memberships, any large or repeating bank to bank relationship
- Watch for
- Returns. A debit can come back for insufficient funds days later, so timing and retry policy matter
Usually a flat fee regardless of invoice size, so the fee ignores the ticket size.
Illustrative example. Your fitted rate is negotiated against your actual statement.
How it works
A pre authorized debit mandate under Payments Canada's rules: who may debit, how much, how often, captured digitally.
Fixed or variable amounts pull directly from the customer's account on cycle, with no card in the loop.
Money arrives in your account in a few business days, usually at a flat cost per debit that does not grow with the invoice.
Flat fees change the arithmetic entirely
A card fee scales with the invoice; a bank rail fee does not. A five figure B2B invoice is a different kind of transaction from a counter sale, and it deserves a rail priced for what it is. Any business collecting large amounts by credit card because it seemed like the only option is running invoices on a rail that was never built for them, and the fix requires no negotiation at all, only a second rail.
Where PAD fits and where cards still win
Bank debits are slower to settle and can return unpaid days after they appear to succeed, so they suit relationships more than strangers: tenants, members, retainer clients, trade accounts. Cards remain the right rail for speed, for first transactions and for buyers who want their rewards. The strong setup is both rails, offered deliberately, with each invoice landing on the one that fits.
The mandate is the machinery
PAD runs on the pre authorized debit agreement: the customer's standing authorization, captured with the required disclosures, retained for disputes. Done digitally at signup, it takes a minute and never gets thought about again. Done sloppily, it invites returns and arguments. We deploy PAD with the mandate flow built in, so the right rail is also the clean one.
ACH for customers in the US
In the US, the same kind of bank to bank payment runs on ACH, the Automated Clearing House network. If you collect from customers in the US, we set up ACH alongside EFT and PAD in Canada, so each payment runs on the bank rail of the account it comes from.
EFT and ACH from your own software, or by hand
When your platform needs to start payments on its own, we connect EFT and ACH to it by API, so debits run from your billing system or app without anyone keying them. For smaller volumes, EFT and ACH payments can be entered by hand through a virtual terminal, with no integration work.
Common questions
What does an EFT or PAD transaction cost compared to a card?
Usually flat fees rather than percentages, typically a fixed amount per debit regardless of size. A card fee scales with the invoice; a PAD fee does not, which is the entire point of the rail.
How fast does the money arrive?
Commonly one to three business days depending on setup. It is slower than card settlement, which is the trade you make for the cost, and for recurring relationships the schedule absorbs it easily.
What happens if a debit bounces?
It returns, like a cheque, possibly days later. Good PAD operations pair sensible timing with retry and notification policies, all of which we configure at deployment.
Is PAD complicated to set up with customers?
A digital mandate at signup takes about a minute: the customer authorizes the debits once, with the disclosures Payments Canada requires, and billing runs from there.
Can you set up ACH for customers in the US?
Yes. ACH is the US bank to bank rail, the equivalent of EFT and PAD in Canada. We set it up for businesses that collect from customers in the US, alongside your Canadian rails.
Can EFT and ACH run from our own software?
Yes. We can connect EFT and ACH by API so your system starts debits itself. For lower volumes, payments can be keyed by hand through a virtual terminal instead.
Do you provide payroll?
No. Kubera does not provide payroll services. We can integrate EFT and ACH with third party payroll systems, so ask us about the one you use.
A recommended payments partner of the BC Chamber of Commerce
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