A bank draft and a certified cheque do the same job: they let a seller, landlord or law office accept a large paper payment without relying on the balance in the payer’s chequing account. The difference is whose account the paper is written on. The table below sets the two side by side, using the definitions from Payments Canada, the body that runs Canada’s cheque clearing system.
How to read this table: the first rows use Payments Canada's own definitions. Fees are not in this table because each bank sets its own; they are listed by bank further down.
| Feature | Bank draft | Certified cheque |
|---|---|---|
| What it is (Payments Canada glossary) | A payment item drawn by a bank against its own account | A cheque on whose face the financial institution it is drawn on has written or stamped "accepted" or "certified" |
| Whose account it is written on | The bank's own account | The payer's own account; a cheque instructs the payer's institution to give money from that account |
| Who prepares the paper | The bank | The payer writes the cheque; the payer's institution then marks it certified |
| Stale-dating | Not stated in the Payments Canada cheque guide; ask the issuing bank | Cheques are considered stale-dated after six months, unless certified |
| Hold when deposited | Set by the receiving institution's hold policy; the FCAC describes a bank draft as a secured method of payment | Set by the receiving institution's hold policy |
| Can it be forged? | Yes. Any paper item can be counterfeit; report suspicious activity to the financial institution immediately | Yes. Any paper item can be counterfeit; report suspicious activity to the financial institution immediately |
Source: Glossary — Bank draft (Payments Canada); Glossary — Certified item (Payments Canada); Glossary — Cheque (Payments Canada); Glossary — Money order (Payments Canada); Paying by cheque — what a cheque is (Payments Canada); Paying by cheque — stale-dated cheques (Payments Canada); Paying by cheque — what institutions verify (Payments Canada); Paying by cheque — fraudulent cheques (Payments Canada); Cashing a cheque — why institutions hold cheques (Financial Consumer Agency of Canada); Cashing a cheque — maximum cheque hold period (Financial Consumer Agency of Canada); Cashing a cheque — money released before a cheque clears (Financial Consumer Agency of Canada); Cashing a cheque — paying back a cheque that does not go through (Financial Consumer Agency of Canada); Cashing a cheque — bank draft as a secured method of payment (Financial Consumer Agency of Canada); Cashing a cheque — exceptions to the maximum hold periods (Financial Consumer Agency of Canada); Cashing a cheque — electronic deposits instead of cheques (Financial Consumer Agency of Canada); Cashing a cheque — hold policy disclosure (Financial Consumer Agency of Canada); Merchandise frauds — vendor fraud (Canadian Anti-Fraud Centre); Merchandise frauds — overpayment (Canadian Anti-Fraud Centre); Merchandise frauds — what fraudsters pay with (Canadian Anti-Fraud Centre); Merchandise frauds — quick tips (Canadian Anti-Fraud Centre); Job frauds — counterfeit cheque (Canadian Anti-Fraud Centre); Job frauds — responsibility for withdrawn funds (Canadian Anti-Fraud Centre); Report fraud and cybercrime — report online (Canadian Anti-Fraud Centre); Report fraud and cybercrime — contact local police (Canadian Anti-Fraud Centre). In effect from January 1, 2026; checked October 8, 2026.
This page is education, not financial or legal advice. Fees and hold rules are set by each financial institution, so check the fee list and hold policy for your own account before ordering or accepting either item.
What is a bank draft?
A bank draft is a payment item drawn by a bank against its own account. That is the full definition in the Payments Canada glossary, and the important words are “its own account”. The buyer pays the bank first. The bank then issues a draft, made out to a named payee, that is paid from the bank’s funds and not from the buyer’s chequing account.
RBC’s description of its own product shows how that works at the counter: the money is taken from the buyer's RBC account right away in exchange for the draft, which guarantees the funds for the recipient. Because the money has already left the buyer’s account, the payee is no longer exposed to the usual reason a personal cheque fails, which the Financial Consumer Agency of Canada (FCAC) lists as non-sufficient funds in the cheque writer’s account. The FCAC itself refers to a bank draft as “a secured method of payment”.
A bank draft is not the same as cash, though. It is still a paper item that has to be deposited and cleared, and it can be forged. Both points are covered below.
What is a certified cheque?
A certified cheque starts life as an ordinary personal cheque, written by the payer on the payer’s own chequing account. Payments Canada explains that a cheque instructs the payer’s financial institution to give money from that account to whoever deposits it. The cheque becomes a certified item when the institution it is drawn on writes or stamps “accepted” or “certified”, or words to that effect, on its face.
That stamp is the whole point. It tells the payee that the bank has seen the cheque and accepted it, so the bank, and not just the payer, stands behind the payment. Certification also changes how long the cheque stays current: Payments Canada says cheques are considered stale-dated after six months, unless certified.
To have a cheque certified, the payer needs a cheque from their own account. Anyone who has never ordered a chequebook can see what the numbers along the bottom mean in the guide to void cheques and the transit number guide.
Payments Canada’s glossary places the two items next to the other paper payments a bank handles:
How to read this table: the definitions are quoted from the Payments Canada glossary. 'Member' means a financial institution that is a member of Payments Canada.
| Item | Definition | Drawn on |
|---|---|---|
| Cheque | A Bill of Exchange drawn on a bank, payable on demand | The payer's account |
| Certified item (certified cheque) | An item on the face of which the drawee financial institution has written or stamped the words "accepted" or "certified" or any other word or words to that effect | The payer's account |
| Bank draft | A payment item drawn by a bank against its own account | The bank's own account |
| Money order | A payment item issued by a member and drawn on itself for the purpose of ordering a payment to be made to a payee | The issuing member institution |
Source: Glossary — Bank draft (Payments Canada); Glossary — Certified item (Payments Canada); Glossary — Cheque (Payments Canada); Glossary — Money order (Payments Canada); Paying by cheque — what a cheque is (Payments Canada); Paying by cheque — stale-dated cheques (Payments Canada); Paying by cheque — what institutions verify (Payments Canada); Paying by cheque — fraudulent cheques (Payments Canada); Cashing a cheque — why institutions hold cheques (Financial Consumer Agency of Canada); Cashing a cheque — maximum cheque hold period (Financial Consumer Agency of Canada); Cashing a cheque — money released before a cheque clears (Financial Consumer Agency of Canada); Cashing a cheque — paying back a cheque that does not go through (Financial Consumer Agency of Canada); Cashing a cheque — bank draft as a secured method of payment (Financial Consumer Agency of Canada); Cashing a cheque — exceptions to the maximum hold periods (Financial Consumer Agency of Canada); Cashing a cheque — electronic deposits instead of cheques (Financial Consumer Agency of Canada); Cashing a cheque — hold policy disclosure (Financial Consumer Agency of Canada); Merchandise frauds — vendor fraud (Canadian Anti-Fraud Centre); Merchandise frauds — overpayment (Canadian Anti-Fraud Centre); Merchandise frauds — what fraudsters pay with (Canadian Anti-Fraud Centre); Merchandise frauds — quick tips (Canadian Anti-Fraud Centre); Job frauds — counterfeit cheque (Canadian Anti-Fraud Centre); Job frauds — responsibility for withdrawn funds (Canadian Anti-Fraud Centre); Report fraud and cybercrime — report online (Canadian Anti-Fraud Centre); Report fraud and cybercrime — contact local police (Canadian Anti-Fraud Centre). In effect from January 1, 2026; checked October 8, 2026.
Bank draft vs certified cheque: who guarantees each one?
With a bank draft, the bank is the one paying. The draft is drawn on the bank’s own account, so the payee’s claim is against the bank that issued it.
With a certified cheque, the payer is still the one who wrote the cheque, but the payer’s bank has marked it accepted. The payee’s comfort comes from that bank’s stamp.
In day-to-day use the two are treated alike, and the banks’ own documents show it. Scotiabank says its hold policy counts certified cheques and bank drafts as cheques. CIBC says its hold policy counts certified cheques, bank drafts and money orders as cheques. For someone choosing between them, the practical differences are these:
- Availability. All five big banks publish a fee for a bank draft. TD, BMO and Scotiabank also publish a fee for certifying a cheque; the RBC and CIBC fee documents read for this guide do not.
- Cost. Where both fees are published, the draft costs less.
- What the payer needs. A draft needs only an account with money in it. A certified cheque also needs a personal cheque.
- What the payee asked for. If the payee names one of the two, that settles it.
How much does a bank draft or certified cheque cost at the big banks?
Each bank sets its own fee. The figures below come from each bank’s own fee page or fee document, read on October 8, 2026. Each row links to the page the figure came from.
| Item | Current figure | Source |
|---|---|---|
| RBC Royal Bank fee for a bank draft | $9.95 per draft | rbcroyalbank.com Verified October 8, 2026 |
| TD fee for a bank draft (chequing accounts) | $9.95 per draft; no fee on the TD All-Inclusive Banking Plan | td.com Verified October 8, 2026 |
| BMO fee for a money order or draft | $9.95 per money order or draft | bmo.com Verified October 8, 2026 |
| Scotiabank fee to purchase a bank draft | $9.95 per draft in Canadian or US dollars | scotiabank.com Verified October 8, 2026 |
| CIBC fee for a bank draft or money order | $9.95 per bank draft or money order | cibc.com Verified October 8, 2026 |
| Tangerine Canadian draft fee | $10 (courier included) | tangerine.ca Verified October 7, 2026 |
A few details sit behind those numbers:
- RBC notes that some banking packages include a number of free bank drafts per year, and lists the currencies available for drafts as CAD, GBP and EUR.
- TD shows the fee by chequing account: $9.95 per draft; no fee on the TD All-Inclusive Banking Plan.
- Scotiabank offers unlimited Canadian and U.S. dollar drafts at no charge on its top-tier chequing package.
- CIBC offers free bank drafts and money orders for clients aged 65 and older through CIBC Smart for Seniors (benefits vary by account, and a transaction fee may apply).
- Tangerine has no branches, so its listed fee covers delivery: $10 (courier included).
Fees for certifying a cheque are published by fewer banks:
| Item | Current figure | Source |
|---|---|---|
| TD fee to certify a cheque | $10 when the account holder asks, $15 when someone else asks | td.com Verified October 8, 2026 |
| BMO fee to certify a cheque | $20 when the person who wrote the cheque asks, $30 when someone else asks | bmo.com Verified October 8, 2026 |
| Scotiabank fee to certify a cheque | $15 for the account holder or another Scotiabank client, $25 for someone who is not a Scotiabank client | scotiabank.com Verified October 8, 2026 |
The RBC and CIBC fee documents read for this guide list a bank draft fee and no certification fee. That is not proof the service is unavailable, so a customer of one of those two banks who has been asked for a certified cheque should ask a branch, and can ask the payee whether a bank draft is acceptable instead. A side-by-side look at monthly account fees is in the comparison of banks in Canada.
How do you get a bank draft or a certified cheque?
The steps are short, and they happen at the bank where the payer holds an account.
For a bank draft:
- Get the payee’s exact legal name and the exact amount from the person or office being paid. Both are printed on the draft.
- Make sure the account holds the amount plus the fee. The bank takes the money when it issues the draft.
- Order the draft from the bank. RBC, for example, issues them at any RBC Royal Bank branch in Canada. Online banks handle it differently; Tangerine’s fee is $10 (courier included).
- Keep the receipt or customer copy until the payee confirms the draft has been deposited.
For a certified cheque:
- Write a personal cheque to the payee for the exact amount.
- Take it to a branch of the bank the cheque is drawn on and ask for it to be certified. The bank marks the face of the cheque and charges its fee: $10 when the account holder asks, $15 when someone else asks at TD, $20 when the person who wrote the cheque asks, $30 when someone else asks at BMO, and $15 for the account holder or another Scotiabank client, $25 for someone who is not a Scotiabank client at Scotiabank.
- Hand the certified cheque to the payee.
Mistakes are slow to fix with either item. A draft made out to the wrong name has to go back to the issuing bank, and BMO’s fee document warns that extra fees may apply, at BMO or at other financial institutions, to refund or replace a lost or stolen money order or draft.
Is there a hold on a bank draft or certified cheque?
There can be, and this surprises many payees. The FCAC’s rules cap how long a federally regulated financial institution, such as a bank, can hold money deposited by cheque. The caps depend on the amount and how the cheque was deposited:
How to read this table: these are the FCAC's maximums for Canadian-dollar cheques drawn on a branch in Canada. They may not apply to an account open for less than 90 days, or to a deposit the institution has reasonable grounds to suspect is fraudulent. Credit unions and caisses populaires set their own policies.
| Cheque amount | Deposited in person at a branch | Deposited another way (ATM, mobile) | Access to the first $100 |
|---|---|---|---|
| $1,500 or less | 4 business days after the day of the deposit | 5 business days after the day of the deposit | Immediately in person; the next business day by ATM or mobile deposit |
| More than $1,500 | 7 business days after the day of the deposit | 8 business days after the day of the deposit | Immediately in person; the next business day by ATM or mobile deposit |
| Cheque drawn on a bank outside Canada | Not covered by the maximums; institutions often hold foreign cheques for 30 days | Not covered by the maximums; institutions often hold foreign cheques for 30 days | Not stated by the FCAC; ask the institution |
Source: Paying with your mobile phone — text message or email money transfer (Financial Consumer Agency of Canada); Paying with your mobile phone — e-Transfer fees and limits (Financial Consumer Agency of Canada); Paying with your mobile phone — Autodeposit (Financial Consumer Agency of Canada); Paying with your mobile phone — protecting yourself when using electronic transfers (Financial Consumer Agency of Canada); Paying with your mobile phone — receiving an electronic transfer (Financial Consumer Agency of Canada); Online banking — transfers between accounts (Financial Consumer Agency of Canada); Online banking — sharing banking details (Financial Consumer Agency of Canada); Cashing a cheque — maximum cheque hold period (Financial Consumer Agency of Canada); Cashing a cheque — Table 1, maximum hold periods (Financial Consumer Agency of Canada); Cashing a cheque — Table 1, cheques over $1,500 (Financial Consumer Agency of Canada); Cashing a cheque — access to the first $100 (Financial Consumer Agency of Canada); Cashing a cheque — first $100 timing (Financial Consumer Agency of Canada); Cashing a cheque — exceptions to the maximum hold periods (Financial Consumer Agency of Canada); Cashing a cheque — foreign cheques and credit unions (Financial Consumer Agency of Canada); Cashing a cheque — provincially regulated institutions (Financial Consumer Agency of Canada); Cashing a cheque — electronic deposits instead of cheques (Financial Consumer Agency of Canada); Wire payment — consumer guide (Payments Canada); Wire payment — how a wire travels (Payments Canada); Wire payment — fees and cut-off times (Payments Canada); Wire payment — mistakes (Payments Canada); Wire payment — money transfer businesses not covered (Payments Canada); Pre-authorized debit — consumer guide, funds transfer PADs (Payments Canada); Pre-authorized debit — dishonoured PADs (Payments Canada); Pre-authorized debit — no agreement existed (Payments Canada); Pre-authorized debit — confirmation and cancellation (Payments Canada); Pre-authorized debit — 10-day confirmation (Payments Canada); Retail batch payment system — electronic streams and settlement (Payments Canada); Retail batch payment system — cheque clearing timing (Payments Canada); Retail batch payment system — electronic payment streams (Payments Canada); High-value payment system — Lynx (Payments Canada); Real-Time Rail payment system (Payments Canada); Cashing a cheque — scope of the maximum hold periods (Financial Consumer Agency of Canada); Cashing a cheque — complaints and OBSI (Financial Consumer Agency of Canada); Paying with your mobile phone — questions go to your institution (Financial Consumer Agency of Canada); Wire payment — availability and who to call (Payments Canada); Paying with your mobile phone — sending safely and scams (Financial Consumer Agency of Canada); Paying with your mobile phone — send only to people you know (Financial Consumer Agency of Canada); Wire payment — whether an institution offers wires (Payments Canada); Pre-authorized debit — funds transfer PAD recourse stated in the agreement (Payments Canada); High-value payment system — Lynx operating days (Payments Canada); Real-Time Rail payment system — any day, any time (Payments Canada); System closure schedule 2026 (Payments Canada) — operating days; System closure schedule 2026 (Payments Canada) — January to September; System closure schedule 2026 (Payments Canada) — October to December. In effect from January 1, 2026; checked September 30, 2026.
The FCAC page is written for cheques and does not say separately how a draft or a certified cheque is treated. The banks’ own policies fill that gap, and they lean toward treating all three alike:
- BMO says it may apply its cheque hold periods to certified cheques, money orders and drafts.
- Scotiabank says its hold policy counts certified cheques and bank drafts as cheques.
- CIBC says its hold policy counts certified cheques, bank drafts and money orders as cheques.
- Tangerine’s usual deposit hold is up to 5 business days.
Whether a hold is actually placed is the receiving bank’s decision. A bank must give customers a written copy of its cheque hold policy when an account is opened, so the answer for a specific account is in that document. A hold also ending does not make the money final: CIBC’s policy says even after the hold period expires, there is no guarantee that a cheque will not be returned unpaid. The FCAC adds that when an institution releases money before an item clears it is extending credit, and the customer may have to pay the amount back if the item does not go through.
When does a seller or lawyer ask for a bank draft or a certified cheque?
A payee asks for one of these when the amount is too large to risk on a personal cheque and the payee wants paper in hand at the moment of the exchange. Typical examples are a private vehicle sale, a rental deposit, and the money a buyer brings to a law office before a home purchase closes.
No official source read for this guide says which of the two a seller or a law office must accept. The payee sets the terms, so the useful questions to ask before going to the bank are:
- Which item is accepted: a bank draft, a certified cheque, or either?
- What exact name should it be made out to? A law office will give the exact wording, which is often the name of its trust account.
- What is the exact amount, and by what date and time is it needed?
- Is a wire payment accepted instead?
For a home purchase, the amount is usually the down payment plus closing costs, less any deposit already paid. The mortgage calculator and the land transfer tax calculator help estimate those figures ahead of time; the final number comes from the lawyer or notary. For a vehicle, the car loan calculator shows how the cash portion and the financed portion fit together.
Bank draft and certified cheque fraud: what to check
A draft or a certified cheque removes the risk that the payer’s account is empty. It does not remove the risk that the paper itself is fake. The Canadian Anti-Fraud Centre (CAFC) describes these patterns, which apply to anyone accepting a cheque-type payment from a stranger:
How to read this table: the CAFC's pages describe fraudulent and counterfeit cheques in general. They do not single out bank drafts, but a forged draft or forged certification stamp is used the same way.
| Pattern | How it works | Source |
|---|---|---|
| Overpayment | A payment arrives for more than the asking price, and the buyer asks for the excess to be wired back immediately. After the money is sent, the payment turns out to be fraudulent. | Canadian Anti-Fraud Centre, merchandise frauds |
| Out-of-town buyer | The buyer claims to be located out of town and offers to buy the item unseen, then uses various tactics to avoid paying. | Canadian Anti-Fraud Centre, merchandise frauds |
| Counterfeit cheque job offer | A fraudster sends a counterfeit cheque with a story about needing help to cash it, and asks for some of the funds to be returned. | Canadian Anti-Fraud Centre, job frauds |
| Deposit and forward | The person is told to deposit a cheque, withdraw some of the funds and send them on. The cheque is counterfeit and the person is responsible for any funds withdrawn. | Canadian Anti-Fraud Centre, job frauds |
Source: Glossary — Bank draft (Payments Canada); Glossary — Certified item (Payments Canada); Glossary — Cheque (Payments Canada); Glossary — Money order (Payments Canada); Paying by cheque — what a cheque is (Payments Canada); Paying by cheque — stale-dated cheques (Payments Canada); Paying by cheque — what institutions verify (Payments Canada); Paying by cheque — fraudulent cheques (Payments Canada); Cashing a cheque — why institutions hold cheques (Financial Consumer Agency of Canada); Cashing a cheque — maximum cheque hold period (Financial Consumer Agency of Canada); Cashing a cheque — money released before a cheque clears (Financial Consumer Agency of Canada); Cashing a cheque — paying back a cheque that does not go through (Financial Consumer Agency of Canada); Cashing a cheque — bank draft as a secured method of payment (Financial Consumer Agency of Canada); Cashing a cheque — exceptions to the maximum hold periods (Financial Consumer Agency of Canada); Cashing a cheque — electronic deposits instead of cheques (Financial Consumer Agency of Canada); Cashing a cheque — hold policy disclosure (Financial Consumer Agency of Canada); Merchandise frauds — vendor fraud (Canadian Anti-Fraud Centre); Merchandise frauds — overpayment (Canadian Anti-Fraud Centre); Merchandise frauds — what fraudsters pay with (Canadian Anti-Fraud Centre); Merchandise frauds — quick tips (Canadian Anti-Fraud Centre); Job frauds — counterfeit cheque (Canadian Anti-Fraud Centre); Job frauds — responsibility for withdrawn funds (Canadian Anti-Fraud Centre); Report fraud and cybercrime — report online (Canadian Anti-Fraud Centre); Report fraud and cybercrime — contact local police (Canadian Anti-Fraud Centre). In effect from January 1, 2026; checked October 8, 2026.
The common thread is being asked to send money back out of a deposit. The CAFC’s overpayment warning says the fraudster asks the seller to deposit the funds and wire the excess back immediately, and its job-fraud page says the person who deposited a counterfeit cheque is responsible for any funds withdrawn. BMO’s account agreement makes the same point from the bank’s side: the paying bank can return a cheque at any time, even after a hold is removed, including because it is counterfeit, forged, altered or stolen.
Cautions that follow from those sources, plus one practical step:
- Treat any payment for more than the agreed price as a warning sign, and do not send “change” back.
- Be wary of a buyer who claims to be out of town and offers to buy without seeing the item. The CAFC lists both as signs of vendor fraud.
- Do not hand over the goods, or the keys, only because a deposit shows in the account. A hold ending is not the same as the item being final.
- Payments Canada notes that what a bank verifies on a deposited item is the bank’s own business decision. A payee with doubts can ask the issuing bank to confirm a draft, using a phone number found independently and not one printed on the item.
- Meeting the buyer at a branch of the issuing bank, so the draft is issued in front of the seller, removes the question of whether the paper is real.
How to read this table: the first row is from Payments Canada's cheque guide; the other two are from the Canadian Anti-Fraud Centre's reporting page.
| Who to contact | What the official source says |
|---|---|
| Financial institution | Report any suspicious activity to the financial institution immediately |
| Local police | Victims of fraud are asked to contact local police as soon as possible |
| Canadian Anti-Fraud Centre | Report online at reportcyberandfraud.canada.ca, as a victim or a witness |
Source: Glossary — Bank draft (Payments Canada); Glossary — Certified item (Payments Canada); Glossary — Cheque (Payments Canada); Glossary — Money order (Payments Canada); Paying by cheque — what a cheque is (Payments Canada); Paying by cheque — stale-dated cheques (Payments Canada); Paying by cheque — what institutions verify (Payments Canada); Paying by cheque — fraudulent cheques (Payments Canada); Cashing a cheque — why institutions hold cheques (Financial Consumer Agency of Canada); Cashing a cheque — maximum cheque hold period (Financial Consumer Agency of Canada); Cashing a cheque — money released before a cheque clears (Financial Consumer Agency of Canada); Cashing a cheque — paying back a cheque that does not go through (Financial Consumer Agency of Canada); Cashing a cheque — bank draft as a secured method of payment (Financial Consumer Agency of Canada); Cashing a cheque — exceptions to the maximum hold periods (Financial Consumer Agency of Canada); Cashing a cheque — electronic deposits instead of cheques (Financial Consumer Agency of Canada); Cashing a cheque — hold policy disclosure (Financial Consumer Agency of Canada); Merchandise frauds — vendor fraud (Canadian Anti-Fraud Centre); Merchandise frauds — overpayment (Canadian Anti-Fraud Centre); Merchandise frauds — what fraudsters pay with (Canadian Anti-Fraud Centre); Merchandise frauds — quick tips (Canadian Anti-Fraud Centre); Job frauds — counterfeit cheque (Canadian Anti-Fraud Centre); Job frauds — responsibility for withdrawn funds (Canadian Anti-Fraud Centre); Report fraud and cybercrime — report online (Canadian Anti-Fraud Centre); Report fraud and cybercrime — contact local police (Canadian Anti-Fraud Centre). In effect from January 1, 2026; checked October 8, 2026.
What are the alternatives to a bank draft?
Electronic payments avoid paper holds, and the FCAC suggests having deposits made electronically where possible because the money may be available right away. The two main options, both covered in the guide to transferring money between banks, are:
- Wire payment. A wire travels through Lynx, Canada’s high-value payment system. Payments Canada describes it as final and irrevocable once the funds are in the recipient’s account, which is the same certainty a payee wants from a draft. Each institution sets its own fees and cut-off times: Wealthsimple Chequing, for example, charges $15 per outgoing domestic wire. Not every bank offers them (Tangerine wire transfers: not offered — Tangerine does not send or receive wire transfers).
- Interac e-Transfer. Quick and familiar, but each institution sets its own limits, and those limits are often below the size of a vehicle or home payment. Published examples: Wealthsimple Chequing lists up to $50,000 a day for eligible clients; EQ Bank lists $5,000 per 24 hours, $20,000 a week and $50,000 a month going out; up to $25,000 per transfer coming in; KOHO caps outgoing transfers at $5,000 a day. The FCAC notes that an e-Transfer can’t be cancelled once it has been deposited into the recipient’s account.
How to read this table: rules are from the Financial Consumer Agency of Canada and Payments Canada. Dollar limits and fees are set by each financial institution.
| Method | Suits | Limits and fees | Can it be undone? |
|---|---|---|---|
| Interac e-Transfer | Paying another person or moving smaller amounts to your own account at another institution | Set by each financial institution; a fee may apply to send | Can't be cancelled once it has been deposited into the recipient's account |
| Linked-account transfer (EFT / funds transfer pre-authorized debit) | Moving larger amounts between your own accounts at two institutions | Set by each financial institution | Can be dishonoured (for example for non-sufficient funds or a closed account) no later than the next business day; a claim for reimbursement is possible within 90 days if no PAD agreement existed |
| Wire payment (Lynx) | Large or time-sensitive payments | Each financial institution sets its own fees and its own cut-off times | Final and irrevocable once the funds are in the recipient's account |
| Cheque or mobile cheque deposit | Payments where the payer only issues cheques | A federally regulated institution may hold the money for 4 to 8 business days, depending on amount and deposit method | A cheque can be dishonoured, for example for non-sufficient funds, and the deposited amount taken back |
Source: Paying with your mobile phone — text message or email money transfer (Financial Consumer Agency of Canada); Paying with your mobile phone — e-Transfer fees and limits (Financial Consumer Agency of Canada); Paying with your mobile phone — Autodeposit (Financial Consumer Agency of Canada); Paying with your mobile phone — protecting yourself when using electronic transfers (Financial Consumer Agency of Canada); Paying with your mobile phone — receiving an electronic transfer (Financial Consumer Agency of Canada); Online banking — transfers between accounts (Financial Consumer Agency of Canada); Online banking — sharing banking details (Financial Consumer Agency of Canada); Cashing a cheque — maximum cheque hold period (Financial Consumer Agency of Canada); Cashing a cheque — Table 1, maximum hold periods (Financial Consumer Agency of Canada); Cashing a cheque — Table 1, cheques over $1,500 (Financial Consumer Agency of Canada); Cashing a cheque — access to the first $100 (Financial Consumer Agency of Canada); Cashing a cheque — first $100 timing (Financial Consumer Agency of Canada); Cashing a cheque — exceptions to the maximum hold periods (Financial Consumer Agency of Canada); Cashing a cheque — foreign cheques and credit unions (Financial Consumer Agency of Canada); Cashing a cheque — provincially regulated institutions (Financial Consumer Agency of Canada); Cashing a cheque — electronic deposits instead of cheques (Financial Consumer Agency of Canada); Wire payment — consumer guide (Payments Canada); Wire payment — how a wire travels (Payments Canada); Wire payment — fees and cut-off times (Payments Canada); Wire payment — mistakes (Payments Canada); Wire payment — money transfer businesses not covered (Payments Canada); Pre-authorized debit — consumer guide, funds transfer PADs (Payments Canada); Pre-authorized debit — dishonoured PADs (Payments Canada); Pre-authorized debit — no agreement existed (Payments Canada); Pre-authorized debit — confirmation and cancellation (Payments Canada); Pre-authorized debit — 10-day confirmation (Payments Canada); Retail batch payment system — electronic streams and settlement (Payments Canada); Retail batch payment system — cheque clearing timing (Payments Canada); Retail batch payment system — electronic payment streams (Payments Canada); High-value payment system — Lynx (Payments Canada); Real-Time Rail payment system (Payments Canada); Cashing a cheque — scope of the maximum hold periods (Financial Consumer Agency of Canada); Cashing a cheque — complaints and OBSI (Financial Consumer Agency of Canada); Paying with your mobile phone — questions go to your institution (Financial Consumer Agency of Canada); Wire payment — availability and who to call (Payments Canada); Paying with your mobile phone — sending safely and scams (Financial Consumer Agency of Canada); Paying with your mobile phone — send only to people you know (Financial Consumer Agency of Canada); Wire payment — whether an institution offers wires (Payments Canada); Pre-authorized debit — funds transfer PAD recourse stated in the agreement (Payments Canada); High-value payment system — Lynx operating days (Payments Canada); Real-Time Rail payment system — any day, any time (Payments Canada); System closure schedule 2026 (Payments Canada) — operating days; System closure schedule 2026 (Payments Canada) — January to September; System closure schedule 2026 (Payments Canada) — October to December. In effect from January 1, 2026; checked September 30, 2026.
Finality cuts both ways. A wire or a deposited e-Transfer can’t be pulled back, so the payee’s details need to be confirmed directly with the payee, by phone, before anything is sent.
Common mistakes with bank drafts and certified cheques
- Treating a draft as cash. It is a paper item that can be held on deposit and, if forged, returned.
- Getting the payee name wrong. The name is printed on the draft, and fixing it means going back to the issuing bank.
- Leaving it to the last day. Branch hours, and delivery time at online banks, decide when the draft is in hand.
- Assuming every bank certifies cheques. Three of the five big banks publish a certification fee; all five publish a draft fee.
- Refunding an overpayment. This is the pattern the CAFC warns about by name.
- Throwing away the receipt. It is the record needed if the draft is lost or stolen.
Related guides and tools
Paper payments are one part of moving money in Canada. The guide to transferring money between banks compares e-Transfer, linked-account transfers and wires in detail, and the void cheque guide explains the account numbers a wire or direct deposit needs. Readers choosing where to bank can start with the comparison of banks in Canada, which sets out monthly fees and what each account includes.