ACH vs EFT: What's the Difference in Canada?
If you've searched for payment file help, you've probably found US-focused ACH content. Here's why that doesn't apply—and what Canadian businesses actually need.
The key difference
ACH (United States)
- Managed by: NACHA
- File format: NACHA format
- Bank routing: 9-digit routing number
- Currency: USD
- Used in: United States only
EFT (Canada)
- Managed by: Payments Canada
- File format: CPA-005 (credits), CPA-080 (debits)
- Bank routing: Institution (3) + Transit (5)
- Currency: CAD
- Used in: Canada only
These are completely separate systems. A US ACH file won't work at a Canadian bank, and a Canadian CPA-005 file won't work in the US.
Why the confusion exists
Several reasons this trips people up:
- Both are "electronic funds transfer": The generic term applies to both systems
- US content dominates search results: More US businesses, more US-focused articles
- Some software uses "ACH" generically: Even for non-US payments
- Cross-border businesses deal with both: If you pay US vendors, you might need ACH too
- "EFT" is used loosely: Sometimes means the specific Canadian system, sometimes means any electronic payment
Detailed comparison
| Feature | US ACH | Canadian EFT |
|---|---|---|
| Governing body | NACHA (National Automated Clearing House Association) | Payments Canada (formerly Canadian Payments Association) |
| File format name | NACHA format | CPA-005 (credits), CPA-080 (debits) |
| Record length | 94 characters | 1464 characters |
| Bank identification | 9-digit routing number (ABA) | 3-digit institution + 5-digit transit |
| Clearing system | Federal Reserve / EPN | ACSS (Automated Clearing Settlement System) |
| Processing time | 1-2 business days (same-day ACH available) | 1-2 business days |
| Transaction types | Credits and debits in one format | Separate formats (005 for credits, 080 for debits) |
If you're in Canada
For domestic Canadian payments, you need:
- CPA-005 format for credits (paying out to vendors, employees, etc.)
- CPA-080 format for debits (collecting money via pre-authorized debit)
- Canadian institution + transit numbers for routing (not US routing numbers)
- Canadian-compatible software that generates these formats
Ignore US ACH guides. If an article talks about NACHA format, 9-digit routing numbers, or the Federal Reserve, it's about the US system and won't help you.
If you pay US vendors from Canada
You'll need to deal with both systems:
- For Canadian payments: CPA-005 to your Canadian bank
- For US payments: Wire transfer, cross-border payment service, or US ACH through a US bank account
Canadian banks can send wire transfers to US accounts, but they can't process ACH files directly. If you need to send regular US ACH payments, you'd typically need:
- A US bank account that accepts ACH file uploads, or
- A cross-border payment service (which handles the conversion), or
- Wire transfers (more expensive per transaction)
What about Interac e-Transfer?
Interac e-Transfer is a third Canadian payment option, separate from both EFT and ACH:
| Canadian EFT (CPA-005) | Interac e-Transfer | |
|---|---|---|
| Best for | Batch payments (payroll, vendor runs) | One-off payments |
| Speed | 1-2 business days | Minutes to hours |
| Cost | Pennies per transaction (batch file) | $1-2 per transfer |
| Info needed | Bank account, transit, institution | Email or phone number |
| Batch capable | Yes (hundreds in one file) | No |
Common mistakes to avoid
Using US software for Canadian payments
Software that generates "ACH files" or "NACHA format" won't work for Canadian banks. You need software that specifically generates CPA-005.
Using US routing numbers
9-digit routing numbers are for US banks. Canadian banks use 3-digit institution + 5-digit transit. If someone gives you a 9-digit number for a Canadian bank, something's wrong.
Following US payment guides
Articles about "how to send ACH payments" are about the US system. For Canadian payments, search specifically for "CPA-005" or "Canadian EFT."
Assuming formats are similar
ACH (94-character records) and CPA-005 (1464-character records) are completely different. You can't convert between them by just changing a few fields.
Summary
- ACH = US (NACHA format, 9-digit routing numbers)
- EFT/CPA-005 = Canada (1464-byte records, institution + transit)
- They're not compatible—different formats, different systems
- For Canadian payments, ignore US ACH content
- For cross-border, you may need to deal with both (or use wire/payment services)
Need to send Canadian EFT payments?
EFT Flow generates proper CPA-005 files for Canadian banks. Works with any Excel export. No per-transaction fees.