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  1. #1
    Join Date
    Nov 2002
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    4,376

    Unhappy Canadians - caution with Interac Email Money Transfer

    In 2009 I made the mistake of accepting a payment via Interac Email Money Transfer (this is an online Canadian bank-account to bank-account transfer). The account holder is now claiming the charge is fraudulent but the sender had to be logged in to the online bank account and have access to the account holder's email address. Hopefully it resolves in my favor but I can't get any info on time limits on making a fraud claim.

  2. #2
    Interac Online has been around for a while now (which is basically the same as an email money transfer), but in my experience it hasn't seen much adoption in Canada.

    It's affordable, especially for larger tickets, but like you said, the customer needs to login to their online banking. As far as the dispute resolution process goes, I've never run into a situation where someone disputed an Interac Online transaction. I'd be curious to know if you can post the result to the forum?

    Overall, an online checkout process using Interac Online is definitely not as streamlined as a credit card sale. Did you have many people using it?
    David Goodale
    Merchant Accounts.ca
    Canada's merchant account provider.
    Toll free: (888) 414-7111 ext. 5 | Direct: (905) 901-2254

  3. #3
    Join Date
    Oct 2009
    Location
    Canada
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    482
    Really? I accept these and I don't see how the end-user is able to file a claim...

    They need to login to online banking and manually send a payment, it's not like we can debit directly from their account.

    I was under the impression that this should be the same as writing a check or sending "virtual cash".

    Guess I'll need to read their policies in detail before keeping it as a standard payment type.
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  4. #4
    Join Date
    May 2004
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    Toronto, Canada
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    Quote Originally Posted by Techno View Post
    In 2009 I made the mistake of accepting a payment via Interac Email Money Transfer (this is an online Canadian bank-account to bank-account transfer). The account holder is now claiming the charge is fraudulent but the sender had to be logged in to the online bank account and have access to the account holder's email address. Hopefully it resolves in my favor but I can't get any info on time limits on making a fraud claim.
    So two years ago someone made a payment with Interac and they are claiming it is fraud now? I seriously doubt they will be successful. I worked for one of the banks and helped implement it's integration into that bank and I know the assumption was if it was sent and received with a question / answer pair it must be legit except if the online banking was compromised. I know the bank I worked at would go after the person claiming it was fraud after this time.

    Do post and tell us what happens. They haven't reclaimed or put any funds on hold have they?
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  5. #5
    Join Date
    Nov 2002
    Posts
    4,376
    It has been resolved in my favor but CIBC froze my bank account for a day while they investigated. I have only received 3 Interac EMT transactions over the past 2 years - and won't take any more. CIBC tells me there is no time limit on fraud claims. If I did it again I'd make sure to do a telephone validation and other fraud checks.

  6. #6
    Join Date
    May 2004
    Location
    Toronto, Canada
    Posts
    5,083
    thats the bank. I am not sure it is necessary to be concerned about this. It is used by many companies and it a lot safer.

  7. #7
    Join Date
    May 2007
    Posts
    438
    Quote Originally Posted by Techno View Post
    CIBC tells me there is no time limit on fraud claims.
    That is ridiculous! What incentive do they give businesses to accept this method?
    If I recall correctly, Amex is essentially stigmatized for the 18 month allocation for claims. Do they really expect businesses to continue using Interact EMT if they allow an infinite amount of time for buyers to scream fraud?

    I attempted to set Interact up on more than one occasion and decided against it each time for different reasons - I was never aware they had these types of policies. Now I'm thankful I decided against it!

  8. #8
    CIBC told you there is no limit on a fraud claim? That is surprising, I expect there has to be some sort of limit.

    I don't know enough about it to make any definitive comment about Interac Online transactions, but one thing to consider is who controls this dispute resolution process?

    If someone banks at TD and sends an email money transfer to someone at CIBC, which bank holds more authority in the dispute resolution, or is it handled by Interac?

    No transaction can have infinite liability (go back forever). How could someone calculate the risk on something (the person at the bank who manages the risk associated with these transactions) if every transaction ever processed could be revisited for a reversal? The most I could see is the timeframe has not yet been defined, or is defined on a per case basis. Then again, I'm not an expert in this field and am just thinking out loud. Another thing to consider (that may play a role) is authorization for the transfer is protected by a persons online banking login and password, which is quite different from a credit card transaction. Perhaps the dispute resolution rules are built around this.

    In any case, it sounds like you got it sorted out in your favor, which is the most important thing. I wonder why the person disputed it, and if they later dropped the dispute.

    Nobody likes chargebacks in the credit card industry, but at least the criteria surrounding it is fairly well defined. If you went to Interac and asked for clarification in writing I'm sure they could likely provide you with more info on their dispute resolution process.
    David Goodale
    Merchant Accounts.ca
    Canada's merchant account provider.
    Toll free: (888) 414-7111 ext. 5 | Direct: (905) 901-2254

  9. #9
    Join Date
    Nov 2002
    Posts
    4,376
    Quote Originally Posted by dgoodale View Post
    I wonder why the person disputed it, and if they later dropped the dispute.
    CIBC and the other bank apparently apparently sort these out between themselves on a case by case basis. I don't know if the sending bank was was CIBC or other.
    I am a domain reseller using the LogicBoxes platform. The buyer funded their account 2 years ago, created a sub reseller account, and only in the past month have brought the balance down to $25 - leaving little to seize. There are only 3 domains remaining in the account - registered to Indonesians.
    Last edited by Techno; 05-19-2011 at 05:27 PM.

  10. #10
    Join Date
    Jan 2011
    Location
    India
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    *

    I think your case is strong and you are not going to suffer because account holder has to signed in his online account then only he can transfer. Bank will take care of all these issue but it may take time to verify all these.

    Quote Originally Posted by Techno View Post
    In 2009 I made the mistake of accepting a payment via Interac Email Money Transfer (this is an online Canadian bank-account to bank-account transfer). The account holder is now claiming the charge is fraudulent but the sender had to be logged in to the online bank account and have access to the account holder's email address. Hopefully it resolves in my favor but I can't get any info on time limits on making a fraud claim.

  11. #11

    ?

    if it doesnt make sense, it isnt true.

    Judge judy quote

    I know this was so long ago but wth... I use Interac everyday to make payments and paypal is usless. I have never heard of such a thing. Also you only can make a min payment of 10$ to 1,000$ using Interac e transfer.

    All Interac is, is a debit. The user is the only one that can make a payment.

    Interac is the safest payment method I have ever used and the cheapest at that. Its NOT like a credit card at all.

    Also, americans cant use Interac or accept it as far as I know because the banks dont have it there. Thats why there is paypal. Germany is also using Interac payments, and other countrys, not just CANADIANS.

    IDK what happened to you but I would like a better story and not a HUGE gap left out. I read all the posts and still dont know what your talking about or what happened. When a IDP is sent, the user auto agrees and accepts meaning no claims can be made and the bank itself insures that the merchent is LEGAL. Only registered Merchents to IDP Interac can use it also bank to bank and you have to be in Canada or the SAME following country. You cant make a payment Canada to America through IDP. Like I said, The user accepts the payment as soon as they send it and cant claim it back. Thats why you as a resposable person, read over and insure what you are paying for. Other wise your just giving away cash.

    You dont get charged for fraud and you cant charge someone for fraud. But you can get thrown in jail and charged if you steal some1s bank account or debit card. also hack there email.. you get the idea. But the bank logs and tracks locations and Protocal meaning, If I were to try to login my bank through another machine, I would have to prove its really me.

    Really? I accept these and I don't see how the end-user is able to file a claim...

    They need to login to online banking and manually send a payment, it's not like we can debit directly from their account.

    I was under the impression that this should be the same as writing a check or sending "virtual cash".

    Guess I'll need to read their policies in detail before keeping it as a standard payment type.
    ^^what he said^^

  12. #12
    I also use Interac everyday in my wallet and never use cash. If my card is stolen, it is much easier to find it/them then it is to find the money that was stolen.

    Interac is one of the safest payments out there and espiecally if you have children. It is 100x safer then paypal, Creditcards, etc.


    I hope to hear your FULL story and make sense out of it. Also, I think you should read the agreement before claiming such a thing happened.

  13. #13
    05-17-11, 08:49 PM
    In 2009 I made the mistake of accepting a payment via Interac Email Money Transfer (this is an online Canadian bank-account to bank-account transfer). The account holder is now claiming the charge is fraudulent but the sender had to be logged in to the online bank account and have access to the account holder's email address. Hopefully it resolves in my favor but I can't get any info on time limits on making a fraud claim.

    05-18-11, 05:36 PM
    It has been resolved in my favor but CIBC froze my bank account for a day while they investigated. I have only received 3 Interac EMT transactions over the past 2 years - and won't take any more. CIBC tells me there is no time limit on fraud claims. If I did it again I'd make sure to do a telephone validation and other fraud checks.
    And whats the chances of that? 2 YEARS, then 1 day resolved!? people, read and investagate before you believe in things. If something doesnt make sense, then it isnt true!

    What are you, a credit card promoter or paypal promoter getting payed to talk down about one of the most trusted payments in the world? lol...
    Last edited by werd23; 04-20-2012 at 04:44 PM. Reason: funny stuff

  14. #14
    Join Date
    Apr 2012
    Location
    Ontario Canada
    Posts
    498
    This bothers me a bit as I do provide this options to my clients ever since a friend of mine asked for hosting but wanted to pay via bank transfer. Though I have not had an issue so far, this is making me reconsider using EMT's as a public form of payment as I am too with CIBC.

  15. #15
    Join Date
    Sep 2011
    Location
    Ontario, Canada
    Posts
    102
    Being from Canada, I've used this with various banks in the past but mostly with family, friends, and people I personally known. Never thought of using it for business. Interesting...

    Best of luck sorting it all out - contact all banks involved for sure
    Eric U.
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