How Canadians Pay Small Businesses: Interac, Cheques and Direct Deposit

A South African client asks how you'd like to be paid: in rand or in CAD? By bank transfer or by card? A Canadian contractor answers without hesitating — Interac e-Transfer, a domestic bank-to-bank transfer that lands in about 20 minutes for free or a small fee depending on your bank. For Saffas that answer needs unpacking, so what follows is how Canadians pay small businesses, explained through the three systems that carry nearly all of it: Interac e-Transfer, cheques and direct deposit. The payment infrastructure here is cheaper and far more standardised than what you're used to.

Interac e-Transfer: the national standard

Interac e-Transfer is an app-based instant bank transfer between Canadian accounts. You open your banking app, enter a recipient's email address or phone number, type an amount, and the money lands in their account within 30 minutes (usually in seconds). No cheque, no paper, no fee on the recipient's side (sender pays $1–$2 depending on bank and account type, or zero with some account tiers).

For a freelancer or contractor invoicing clients, e-Transfer is the default. A client pays you within an hour of receiving an invoice; the money is in your account immediately. There's no "the cheque is in the post" explanation — it lands or it doesn't, and you know within 30 minutes. This is why Canadian invoices often say "Interac e-Transfer accepted here" where a South African invoice would say "EFT to account."

So what is the limit on an Interac e-Transfer? Limits vary by bank but typically cap at $2,000–$3,000 per transfer for individual customers, though some banks allow higher limits for business accounts or allow multiple transfers. If you need to pay a supplier $5,000 and you're on a $2,000/transfer account, you can send two transfers within the same hour. Most small-business payments stay within the limit.

Cheques: they still exist but slowly

Cheques survive in Canada, but they're slower and costly for businesses. A business pays you by cheque and you deposit it at your bank or via mobile app (photograph it). That raises the practical question — how long does a business cheque take to clear? Three to ten business days, depending on whether it's a local or non-local cheque, and local clears faster. During those days, the money is not in your account.

For employees, paycheques are the norm — many Canadian employers still pay via cheque (direct deposit is now common but not universal). For contractors and small-business suppliers, cheque payment is unusual unless the client is old-school or doesn't have e-Transfer set up. When it happens, you're waiting and holding the uncashed cheque for a week.

Most business invoices ask for e-Transfer and list a payee email address. Some add "Cheque accepted but takes 10 days to clear." Canadian businesses are pragmatic: e-Transfer is faster and cheaper, so that's what they ask for.

Direct deposit: employers pay this way

Direct deposit is automatic payroll sent from an employer's account to your bank account. It's how most employees are paid, and it's standard for businesses and government. A new employee's onboarding always includes "provide your banking details for direct deposit." This is not e-Transfer (it's a batch file your employer sends to the bank); it's employer-specific infrastructure. You can't DIY a direct deposit to yourself, but your employer might ask for a small setup fee or do it free as part of onboarding.

For contractors getting paid by the same client repeatedly (monthly retainer, ongoing project work), some clients offer to set up direct deposit after the first few Interac transfers. It's slightly faster and cheaper for them (they can batch payroll with direct deposit but must do Interac transfers one at a time). As a contractor, both are fine — it's a client convenience.

Credit and debit cards: when they matter

Canadian businesses rarely pass credit-card processing fees to customers for small transactions. A retailer (shop, restaurant, salon) absorbs the 2–3% card fee as a cost of business. An online business building the fee into the price is normal. For contractor invoices, card payment is rare — clients expect e-Transfer or bank transfer.

Debit cards are for retail; they're not a payment method for business transactions. A client doesn't pay an invoice via debit card.

What to set up as a South African contractor

When you land and start freelancing or contracting: open a Canadian business bank account immediately. Most banks offer a "business" account with a small monthly fee ($15–$25) plus some Interac transfers free per month. Get a dedicated email or phone number for Interac payments (use your business email). Tell clients: "Interac e-Transfer to [your business email]."

Accept e-Transfer, period. PayPal's cross-border fees are brutal and card processing is too expensive for a contractor's margin. A bank transfer from South Africa is slow and costly at both ends. State it clearly in your invoice: "Payment due within 7 days via Interac e-Transfer to [email]."

Most Canadian small-business owners doing this will nod and send the payment within an hour of receiving the invoice. You'll learn within your first month that this is the normal speed and frictionlessness of business in Canada — not cutting-edge, just the default infrastructure.