Email Money Transfer (EMT): What It Is and How It Works

Most major Canadian banks use Interac e-Transfer to power EMTs, making it a widely used option across local payment methods. Since its launch in 2002, EMT has become a go-to method for individuals and small businesses needing to move money quickly.

Although EMTs are popular in Canada, they aren’t available for international transfers. For that, platforms like Vellis offer cross-border solutions.

How Email Money Transfers Work

Email money transfers (EMTs) make sending and receiving funds simple and quick. This process involves a few steps that ensure the money moves securely from one person to another.

1. Log into your bank’s app or website.
2. Select the Interac e-Transfer or EMT option.
3. Enter the recipient’s email or mobile number.
4. Add the amount you want to send.
5. Create a security question (unless the recipient uses Autodeposit).
6. Review and confirm the details.

The recipient will get a message letting them know funds are on the way. If Autodeposit isn’t set up, they’ll need to answer your security question to receive the money. Otherwise, the funds go straight into their bank account.

Your bank uses secure encryption and authentication measures to protect the transaction, while the recipient’s bank processes and deposits the money. This smooth, email-based payment processing solution helps transfer funds within minutes.

Advantages of Using Email Money Transfers

Email money transfers offer quick and secure ways to send funds, making them ideal for both personal and business use. 

Fast and Convenient

You can transfer money through email in minutes, perfect for situations that require instant payments, whether personal or business-related. For example, entrepreneurs exploring what is dropshipping often rely on EMTs to pay suppliers or freelancers quickly, helping them maintain smooth operations without delays.

No Need to Share Bank Account Numbers

With EMTs, all you need is the recipient’s email address. This eliminates the need to exchange sensitive bank details which assures users, especially those managing multiple transactions.

Secure Banking Technology

Banks protect email transfers with advanced encryption and two-factor authentication. These safeguards ensure your money and personal information remain secure during each transaction.

Popular for Small Payments

Email money transfers are widely accepted among individuals and small businesses. Whether you’re reimbursing a friend or paying for a service, EMT is a quick and trusted choice—ideal for dropshipping sellers handling frequent but smaller payments.

Low or No Fees

Most banks include EMT in standard banking plans with minimal or no added fees. That makes them especially appealing for cost-conscious users like small business owners and people starting a dropshipping business.

Limitations and Risks of EMT

While email money transfers offer a convenient way to send funds, they come with their own set of risks if not handled properly.

• Mostly Domestic: EMTs are primarily for use within Canada. They aren’t suitable for international transfers; services like PayPal and Wise are better for that.
• Bank-Imposed Limits: Most banks cap EMTs at around $2,000-$3,000 per transaction. Daily and weekly limits also apply, which can be a hurdle for larger payments.
• Security Question Vulnerability: Using weak or reused security questions can make your EMT vulnerable. Hackers could intercept the funds if your email or question is compromised. Autodeposit helps reduce this risk but comes with its own security considerations.
• Potential Delays: If the recipient doesn’t accept the transfer promptly (within 30 days), the money is returned to the sender. Delays like this can interrupt timely payments.
• Not Ideal for Large Transactions: Because of the limits and lack of invoicing features, EMT isn’t suitable for large or complex business transactions.

Popular Providers and Platforms

Many banks and third-party platforms offer email money transfer services, integrating them into mobile banking apps and online portals for easy access.

Banks That Support EMTs

Over 250 Canadian financial institutions – including RBC, BMO, CIBC, TD, and Scotiabank – offer EMTs through their mobile apps and websites.

Third-Party Alternatives

Platforms like PayPal and Wise allow users to send money using an email address, similar to EMTs. While not exactly the same, they’re especially useful for international transfers.

Wise, for example, requires recipients to enter bank details to receive funds. If they don’t do this within a week, the transfer is canceled and refunded.

Easy Access via Apps

Email transfers are built into most banking apps. Just a few taps let you email transfer money without visiting a branch, making it easy for anyone to send or receive funds. 

EMT vs. Other Transfer Methods

Here’s how Email Money Transfers (EMT) stack up against other popular transfer methods like wire transfers, PayPal, and Zelle.

Feature	EMT	Wire Transfer	PayPal	Zelle
Primary Use Region	Canada	Global	Global	U.S. only
Transfer Medium	Email Address	Bank Details	Email/Phone	Email/Phone
Speed	Instant to 5 Business Days	1-5 Business Days	Instant	Instant
Security	Security Question	Bank Verification	Encrypted	Bank Integration
Domestic/International	Domestic	Both	Both	Domestic
Transaction Limit	Imposed by Banks	High or No Limit	Varies by Account	Typically High

EMTs shine when it comes to domestic, low-cost, fast transactions—but may fall short for larger or international payments.

How to Send an Email Money Transfer

Sending money through email has become a quick and secure way to handle transactions. Here are the steps to email transfer money successfully:

1. Open your bank’s mobile app or website.
2. Go to the “Transfers” section and select Interac e-Transfer.
3. Choose your account and enter the recipient’s name and email.
4. Add the transfer amount and a security question.
5. Review and send the money.

This process is designed for both convenience and security, enabling users to transfer funds directly without needing to share sensitive bank account information.

How to Receive Money from an Email Transfer

First-time recipients and auto-deposit users follow different steps to accept an EMT to ensure secure and efficient money transfers..

For First-Time Users

1. You’ll get an email with a link to deposit the funds.
2. Click the link and answer the sender’s security question.
3. Choose your bank and log in to accept the transfer.

If you don’t know the answer, contact the sender.

For Autodeposit Users

1. Funds go straight into your account—no questions asked.
2. You still receive an email notification confirming the deposit.

Autodeposit saves time, but make sure your email and bank login remain secure. 

Both methods involve emails that notify senders and recipients about the transfer status, enhancing communication between parties involved in email transfers of money.

Watch for Scams

Always verify unexpected email transfers. If something seems off, contact the sender directly. Avoid accepting funds from unknown individuals and keep transaction records for your protection.

Frequently Asked Questions (FAQs)

Is an email money transfer the same as a wire transfer?

No, EMTs are typically domestic, faster, and less costly than traditional wire transfers.

Can I use email money transfer for international transactions?

Generally no, EMTs are mostly limited to the country’s banking network, such as Canada’s Interac system.

What happens if I send an EMT to the wrong email address?

If not accepted or deposited, the transfer will typically expire and return the funds to the sender after a set time.

How do I know if the email money transfer is secure?

It’s secure when done through a verified banking platform, and protected by encryption and optional security questions.

Are there fees for using EMT services?

Some banks offer it free with standard accounts; others may charge a small fee per transaction.

References

Investopedia. (n.d.). Email money transfer (EMT): What it is, how it works. https://www.investopedia.com/terms/e/email-money-transfer.asp

Sage. (2022, November 10). What is an Email Money Transfer (EMT) payment? https://www.sage.com/en-ca/blog/what-is-an-email-money-transfer-emt-payment/

Wise. (n.d.). Email money transfer. https://wise.com/us/blog/email-money-transfer