EFT Glossary

ACH (Automated Clearing House)

The US equivalent of Canada's EFT system. ACH is managed by NACHA and uses a different file format than Canadian CPA-005. ACH files don't work with Canadian banks. See ACH vs EFT →

ACSS (Automated Clearing Settlement System)

The system Payments Canada uses to clear and settle EFT transactions between financial institutions. When you upload an EFT file to your bank, it eventually goes through ACSS.

Account Number

The unique identifier for a specific bank account. Length varies by institution (typically 7-12 digits). Found on void cheques and bank statements. Not to be confused with institution or transit numbers.

CPA (Canadian Payments Association)

Now known as Payments Canada. The organization that manages Canada's payment clearing and settlement systems, including the standards for EFT file formats.

CPA-005

The standard file format for batch credit EFT payments in Canada. A fixed-width text file with 1464-character records. Used for direct deposits, vendor payments, and other credit transactions. See CPA-005 guide →

CPA-080

The standard file format for batch debit EFT payments (pre-authorized debits) in Canada. Used when you're collecting money from accounts rather than paying out.

Credit Transaction

A payment where money is deposited into an account. Direct deposits and vendor payments are credit transactions. Opposite of debit transactions (where money is withdrawn).

Debit Transaction

A payment where money is withdrawn from an account. Pre-authorized debits (PAD) are debit transactions. Requires CPA-080 format rather than CPA-005.

Destination Data Centre

A code in the CPA-005 file header indicating which Payments Canada data centre should process the file. Your bank provides the correct code for your region.

Direct Deposit

Electronic payment of funds directly into a bank account. Common for payroll, government benefits, and vendor payments. Uses EFT and CPA-005 format in Canada.

EFT (Electronic Funds Transfer)

The electronic movement of money between bank accounts. In Canada, batch EFT uses CPA-005 (credits) or CPA-080 (debits) file formats. Not to be confused with Interac e-Transfer. See What is EFT →

e-Transfer (Interac e-Transfer)

A real-time payment service for sending money using email or phone number. Different from EFT—faster but typically more expensive per transaction and not designed for batch payments.

File Creation Number

A unique 4-digit number in each CPA-005 file that identifies the specific file. Must be unique—banks track these to prevent duplicate file submissions. Increment for each new file.

Fixed-Width Format

A file format where each field has a specific character length. CPA-005 uses fixed-width format with exactly 1464 characters per record. Fields are padded with spaces to maintain consistent length.

Folio

Desjardins terminology for account number. Functions identically to account numbers at other financial institutions.

Institution Number

A 3-digit code identifying a Canadian financial institution. Examples: BMO=001, Scotiabank=002, RBC=003, TD=004, National Bank=006, CIBC=010. Credit unions have their own institution numbers by province.

Originator

The organization initiating an EFT payment. When you pay vendors via EFT, your company is the originator. Identified by an originator ID in the CPA-005 file.

Originator ID

A 10-character code assigned by Payments Canada that identifies your organization in EFT transactions. Required for CPA-005 files. Obtained through your bank when you set up EFT services.

PAD (Pre-Authorized Debit)

An arrangement where a company can withdraw funds from a customer's bank account. Uses CPA-080 format. Requires customer authorization. Common for recurring bills and subscriptions.

Payments Canada

The organization (formerly Canadian Payments Association) that owns and operates Canada's payment clearing and settlement infrastructure. Sets standards for EFT file formats including CPA-005.

Return

When a payment can't be completed and the funds are returned to the originator. Common reasons: closed account, invalid account number, insufficient funds (for debits). Returns typically occur within 2-3 business days.

Routing Number

The combination of institution number (3 digits) + transit number (5 digits) that identifies a specific bank branch. Sometimes shown as a single 8-digit number. In the US, "routing number" refers to the 9-digit ABA number.

Trailer Record

The final record in a CPA-005 file containing totals (count of transactions, total dollar amount). Banks validate that trailer totals match the sum of detail records. Mismatches cause file rejection.

Transaction Code

A 3-digit code in CPA-005 records indicating the type of transaction. Common codes: 200 (payroll), 220 (miscellaneous payment), 460 (vendor payment). Your bank may have preferences for which codes to use.

Transit Number

A 5-digit code identifying a specific bank branch. Combined with the 3-digit institution number to route payments. Found on void cheques and bank statements. Also called "branch number" at some institutions.

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