Shopping Discussion

How safe is it to take e-transfer as a method of payment when selling on Craigslist/Kijiji?

  • Last Updated:
  • Sep 8th, 2021 2:16 pm
Deal Addict
Nov 23, 2004
1472 posts
2777 upvotes
Ontario
Archanfel wrote: Assuming cash is not an option, is interact e transfer safer than paypal? How about vs. paypal friends and family?
To some extent, yes. An etransfer can't be reversed at all. I know this because I was that idiot who let his guard down and paid for something in etransfer once (small sum of money at least) and was scammed. I called the bank relentlessly, interac, etc. and was told that once an etransfer is sent, it's sent. There's no undoing it, there's no reporting it as fraud and having it reversed, nothing. In the banks own words, etransfer was the equivalent of handing someone money in person and when they have it, it's theirs unless they give it back.

PayPal has a couple different ways to pay, and most people will pay you using "Goods and Services" payment type. That type of PayPal payment is protected by PayPal's buyer protection guarantee. So if the person doesn't like the item they bought from you, is a scammer, etc. then they can file a dispute with PayPal, who is known to side with the buyer, and PayPal will forcibly take the money back from your account and give it to the buyer. Now they have the item, and their money back too. That being said, if the person does this a lot, then PayPal will obviously catch that type of behavior. The dispute also has some back and forth, so if you put up a really good argument then PayPal may actually side with you and you keep the money, but they are known in general to side with buyers.
Deal Expert
User avatar
Jul 5, 2004
27438 posts
6807 upvotes
E-transfers are typically not reversed. I also fell victim to a scam once and getting my money back proved to be impossible. The banks simply don't reverse e-mail money transfers.

I would have no problem accepting it as payment. The only thing you want to make sure is that the person who sent you the EMT is the same person you're selling the item to, and that the EMT is addressed to you and not to someone else. As long as that's the case, it's very safe
Sr. Member
Nov 12, 2012
599 posts
288 upvotes
Port Moody
PayPal protects the buyer.

Cash protects the seller.

E-transfers should be reserved for people you know and trust, regardless if you're the sender or receiver.
Deal Fanatic
User avatar
Sep 27, 2006
5968 posts
2749 upvotes
Not so easy there Ma…
cursayer wrote: Been selling some stuff on Craigslist lately and some people have been offering to pay in etransfer instead of cash, but I always opt for cash. Is etransfer that safe? It would be more convenient but I'm just afraid I would get scammed.
Heavenleigh85 wrote: I use e transfer often... if they or I are sending it from a bank account they cannot get a refund it’s not like PayPal where you can file a dispute ....once that money is sent it’s gone and just as good as cash. I really get annoyed when people don’t want to take e transfer it’s very secure and saves me the hassle of having to stop at a bank machine on the way to pick something up.
jackrabbit000 wrote: I've done about 200 transactions on CGN all with Interac E Transfers and zero problems. It's the only way I buy and sell anything on private/one on one deals.
albundy99999999 wrote:
There is no valid case where e-transfer is an issue; therefore, it is safe generally.
Late to the thread and I've never received an etransfer myself (had a couple of buyers requesting) but it seems if you don't deposit an etransfer right away the buyer can cancel it. I have no idea if a cancel takes effect right away but I guess so,

I found the following on a Canadian banking site

If I change my mind can I retrieve/cancel an Interac e-Transfer payment after I've sent it?
Yes. If the recipient has not deposited the funds in their account, the payment may be reclaimed (e.g., cancelled)
through Online Banking.
From the Banking tab:
Select "Pay Bills and Transfer Funds".
Select the "Payment History" tab.
From the Payment History list, select the Interac e-Transfer to be cancelled and choose "Cancel Payment".
Deal Addict
Nov 1, 2009
2211 posts
1356 upvotes
fergy wrote: Late to the thread and I've never received an etransfer myself (had a couple of buyers requesting) but it seems if you don't deposit an etransfer right away the buyer can cancel it. I have no idea if a cancel takes effect right away but I guess so,

I found the following on a Canadian banking site

If I change my mind can I retrieve/cancel an Interac e-Transfer payment after I've sent it?
Yes. If the recipient has not deposited the funds in their account, the payment may be reclaimed (e.g., cancelled)
through Online Banking.
From the Banking tab:
Select "Pay Bills and Transfer Funds".
Select the "Payment History" tab.
From the Payment History list, select the Interac e-Transfer to be cancelled and choose "Cancel Payment".
Can opt in for auto deposit.
Once the funds is sent no way of retracting the transaction.
Only risk would be if the fund they're using is not theirs.
Deal Addict
User avatar
Apr 20, 2012
1876 posts
1480 upvotes
Waterloo, ON
I’m more worried about counterfeit cash at this point than an etransfer. Auto deposit it is in my account in seconds once they send it.
Deal Fanatic
User avatar
Mar 28, 2005
8978 posts
2579 upvotes
Cornwall, Ontario
I don't understand why auto deposit is even allowed.
If one sends an E-transfer and makes a mistake with the email address, or the email gets misdirected somehow, and if that incorrect recipient has auto deposit, that e-transfer is gone.
What's the point of setting up passwords for e-transfer if they are not needed.

Auto deposit makes e-transfer much less secure - the recipient could even claim that they never received the e-transfer.
I use it only for family members or very close friends.
Jr. Member
Dec 29, 2007
182 posts
133 upvotes
Montreal
When you are about to send your money by e-transfer to someone who has set up auto-deposit, you are told that the e-mail you're sending to has autodeposit enabled, and you don't get to choose a passcode etc.
Deal Addict
Jul 18, 2019
2843 posts
6764 upvotes
krs wrote: I don't understand why auto deposit is even allowed.
If one sends an E-transfer and makes a mistake with the email address, or the email gets misdirected somehow, and if that incorrect recipient has auto deposit, that e-transfer is gone.
What's the point of setting up passwords for e-transfer if they are not needed.

Auto deposit makes e-transfer much less secure - the recipient could even claim that they never received the e-transfer.
I use it only for family members or very close friends.
1. Double check everything like one should for all financial transactions.

2. If the email you're sending to has auto deposit, the bank will warn you that it's irreversible, and will disable the password feature.

3. As with a regular transfer, you get an email for when you initiate the transfer. You also get a confirmation once it has been deposited.

Re: why it is allowed... Convenience. I have made many transfers to vendors, sellers, to pay bills etc. and auto deposit eliminates the step of needing to conform to each vendor's password requirements, or needing to communicate your password, e.g. dog's name with a capitalized S. It eliminates a little bit of hassle for all parties involved.

I'm not knowledgable about cyber security so I can't speak for that aspect.
Last edited by Keith1411 on Nov 17th, 2020 12:48 pm, edited 2 times in total.
Deal Addict
Jul 18, 2019
2843 posts
6764 upvotes
brobinsoncc wrote: I’m more worried about counterfeit cash at this point than an etransfer. Auto deposit it is in my account in seconds once they send it.
I've received some very convincing counterfeits before. Each time from low cost transactions. If it's a $1K+ transaction, chances are they're pulling it from a bank.

I only found out because the green ink rubbed off with alcohol on one, and another was rejected by an ABM.
Deal Fanatic
User avatar
Mar 28, 2005
8978 posts
2579 upvotes
Cornwall, Ontario
skadebo wrote: When you are about to send your money by e-transfer to someone who has set up auto-deposit, you are told that the e-mail you're sending to has autodeposit enabled, and you don't get to choose a passcode etc.
I have sent E-transfers to my son who has auto deposit enabled.
I don't get any message that auto-deposit is enabled ahead of time - all I get is the message the funds were accepted after I sent them.
The pass code is chosen before the E-Transfer is even sent, so I don't see how the system would even know if a passcode is required or not.
In fact, depending on the bank or CU, the pass code will be already pre-assigned and is the same as last time I sent an E-transfer to that person unless I actually change it.
Deal Addict
Jul 21, 2009
1676 posts
1424 upvotes
Toronto
krs wrote: I don't understand why auto deposit is even allowed.
If one sends an E-transfer and makes a mistake with the email address, or the email gets misdirected somehow, and if that incorrect recipient has auto deposit, that e-transfer is gone.
What's the point of setting up passwords for e-transfer if they are not needed.

Auto deposit makes e-transfer much less secure - the recipient could even claim that they never received the e-transfer.
I use it only for family members or very close friends.
Both parties will get confirmation numbers about the e-transfer so there is a paper trail. Sure if you make a mistake with typing in the email then the money is lost, but its no different than mailing something to the wrong address or counting your cash wrong. Double check larger amounts.

The biggest risk with e-transfer is receiving funds from a stolen account. This is big time fraud so the chance of this happening by a thief for a small Kijiji deal is low.
Deal Guru
Dec 20, 2018
10132 posts
10243 upvotes
krs wrote: I don't understand why auto deposit is even allowed.
If one sends an E-transfer and makes a mistake with the email address, or the email gets misdirected somehow, and if that incorrect recipient has auto deposit, that e-transfer is gone.
What's the point of setting up passwords for e-transfer if they are not needed.

Auto deposit makes e-transfer much less secure - the recipient could even claim that they never received the e-transfer.
I use it only for family members or very close friends.
well the bank tells you the person has auto deposit on before you send it (it does for TD), so you know before you hit send if someone has auto deposit on
Deal Fanatic
User avatar
Mar 28, 2005
8978 posts
2579 upvotes
Cornwall, Ontario
It seems e-transfer works differently for different financial institutions.
I have never received any email notification when I sent an e-transfer, not from the CU or ScotiaBank, the only two financial institutions I have used for e-transfer.
The only email notification I get is when the e-transfer is deposited.

I have also never received a warning that the recipient has auto-deposit even if the tell me they do.
Deal Addict
Jul 18, 2019
2843 posts
6764 upvotes
The email is probably in the transactions email settings within your account. So it may be turned off by default.

The auto deposit warning is within the transfer page. See pictures.

Edit - and my apologies for being sassy to your original post. I deleted that part.
Images
  • 20201117_123948.jpg
  • 20201117_123243.jpg
Deal Fanatic
User avatar
Mar 28, 2005
8978 posts
2579 upvotes
Cornwall, Ontario
Is the image you posted what you get in your email?

I just checked my ScotiaBank account again.
There is an option to subscribe to messages from ScotiaBank which was off by default. I don't really want their sales pitches so I didn't subscribe. Is that what needs to be turned on?

I also send E-Transfers from my CU account and asked them about notification when I send an E-Transfer.
They specifically told me the CU doesn't send any message when an E-Transfer is sent, only when the recipient deposits the funds.

To get back to the original subject "How safe is it to take e-transfer as a method of payment when selling on Craigslist/Kijiji?"
I would say close to 100%.
Use your common sense and if anything at all seems "fishy", don't do it.
I remember one rather convoluted way a while back where someone lost their money that way, but the e-transfer involved a third party that should have raised red flags.
Deal Fanatic
Mar 17, 2004
5580 posts
1106 upvotes
Toronto
So can anyone confirm if someone uses a stolen account or if they claim their account was stolen that the bank can claw money back?
Deal Fanatic
User avatar
Mar 28, 2005
8978 posts
2579 upvotes
Cornwall, Ontario
Oni-kun wrote: So can anyone confirm if someone uses a stolen account or if they claim their account was stolen that the bank can claw money back?
Well, if fraud is involved the bank can certainly claw the money back.
Just google and you will see items like this:
https://toronto.ctvnews.ca/ontario-man- ... -1.5080749

I only send and receive e-transfers if I know the person or if I feel really comfortable about the transaction and the person.
If you take cash there is also a chance some of that is counterfeit.
Deal Fanatic
Dec 6, 2002
8187 posts
9554 upvotes
Vancouver
Hmm.. I didn't know about the auto accept thing. Sometimes I'll ask buyers to send the transfer when they're on the way to my place, with a secure password. Some banks delay transfers 30 min, so instead of standing around waiting... they just have to tell me the password when they're satisfied with the item.

Maybe that's why I don't hear back from some people after I've requested that.. lol. :)

Ron.
100% Upvote to post ratio! :)
Deal Addict
Jan 18, 2013
3026 posts
1670 upvotes
B.C.
I've been offering them as payment when buying items and people don't seem to mind - but I'm also not in the GTA/GVR and do 100% of my purchases and sales at my house or the sellers house. Most of them are actually porch pickups which are basically the opposite of the GTA style meet up at tim hortons system!

I haven't had any issues. I'd be more worried about counterfeit cash than anything e-transfer related.

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)