Your guide to ACH payments with the Bank of Montreal in Canada

For businesses operating in North America, moving money efficiently is important. In the U.S., Automated Clearing House (ACH) payments are a strong choice supporting everything from payroll to vendor payouts, with platforms like Stripe making it easy. In Canada, however, the landscape is different.

In this article, we’ll cover just how ACH payments work, compare them to Canada’s Electronic Funds Transfer (EFT), Bank of Montreal (BMO) offerings, and whether alternatives like Wise make sense for cross-border transactions.💰

We will be looking at:

What are ACH payments, and are they available in Canada? What is an ACH payment? ACH vs EFT: What’s used in Canada? Does BMO offer ACH (or equivalent) payments for Canadian businesses? What does BMO call ACH-style payments? Types of EFT services at BMO Cross-border payments: Does BMO ACH work for the U.S.? Can BMO send or receive U.S. ACH payments? Alternatives BMO offers for cross-border transfers How to set up EFT payments with BMO Step-by-step for sending EFTs Security and approval workflows EFT vs ACH – What’s the Difference for Canadian Businesses? What are the fees and processing times for BMO ACH or EFT payments? BMO EFT payment times and costs BMO international wire transfer fees Domestic EFT vs Cross-Border Wire with BMO Can Canadian businesses use BMO for incoming ACH payments from the U.S.? Challenges with U.S. ACH payments to Canada What alternatives exist if BMO ACH isn’t enough? Fintech and platform-based solutions Why Canadian businesses turn to Wise Wise – a flexible alternative to BMO ACH for global business payments Key features of Wise Business Cost and speed advantages

What are ACH payments, and are they available in Canada?

When Canadian businesses expand their operations (congrats!) across borders, they must understand the nuances between how countries handle electronic payments. In the U.S., ACH is a leading way for recurring billing, payroll, and business-to-business transactions. What about in Canada?

What is an ACH payment?

An ACH payment is a secure, electronic way to transfer funds between bank accounts, used for businesses and individuals to make and receive payments.¹ ACH payments are typically used for direct deposit payroll, vendor payments, and consumer billing. Instead of going through card networks, ACH transfers move money directly between bank accounts, making them cost-effective and reliable for high-volume payments. ACH payments have two types:

• ACH Credit: Initiated by the sender, or payer, to send funds into a recipient's account.
• ACH Debit: Authorized by the recipient, or payee, to pull funds from a payer's account.

ACH vs EFT: What’s used in Canada?

An ACH transfer involves moving money electronically from one financial institution to another, typically within the United States.¹ In Canada, EFT refers to any electronic payment made between Canadian bank accounts, excluding wire transfers. EFT is the equivalent system used for domestic transfers in Canada.¹

Does BMO offer ACH (or equivalent) payments for Canadian businesses?

The Bank of Montreal is one of Canada’s leading banks, offering plenty of electronic payment solutions.

What does BMO call ACH-style payments?

BMO calls ACH-style domestic transfers EFT, aligning with Payments Canada’s system, the standard term across Canadian banks.²

Types of EFT services at BMO

BMO provides several EFT services:

• Pre-authorized Debits (PADs) to collect payments from clients.
• Direct Deposits for payroll and vendor payments.
• Recurring Payments are automated, repeated payments on a schedule.

Cross-border payments: Does BMO ACH work for the U.S.?

Can BMO send or receive U.S. ACH payments?

From a U.S. dollar account, BMO customers can send and receive ACH payments

to and from other accounts located in the U.S.²

Alternatives BMO offers for cross-border transfers

• Wires: BMO wire payments are fast, secure, and come in handy when a transfer is urgent or high-value.² Get same-day value for USD, CAD, or MXN payments, and next-day value for other currencies. ²
• Wholesale Lockbox: With processing centres across major U.S. cities and Canada, BMO streamlines receivables into a single account for same-day credit, ideal when handling high volumes of U.S. paper payments.²
• BMO Canada Wire: A quick, cost-effective way for Canadian clients to transfer funds from their BMO U.S. deposit account to their BMO Canada U.S. dollar account using BMO Digital Banking (U.S.)³
• BMO Global Money Transfer: Send money overseas quickly and securely to up to 50 countries.⁴

How to set up EFT payments with BMO

The good news: setting up BMO EFT payments is relatively straightforward.

Step-by-step for sending EFTs

1. Go to the Payments Section: After logging into your BMO account, head to the Payments & Receivables tab and select Payments under the Electronic Funds Transfer menu.⁵
2. Choose a Service Agreement: Select the appropriate service agreement, then click Add/Maintain. You’ll now need to create a Payment Group.⁵
3. Create said Payment Group: Click Add Payment Group and fill in the required details.⁵
4. Add Payments to the Group: Return to the Payments menu and select Add/Maintain. ⁵
5. Select the Payment Group: Using the radio button, choose the group you just created before clicking Payment List, followed by Add New Payment.⁵
6. Enter Payment Details: Complete the required fields, review the information, and click Finish to confirm. Your payment file is now ready to be processed and released.⁵

Security and approval workflows

With RBC, the person sending money maintains full control over their cash flow, including the timing of disbursements and collections, helping manage finances efficiently. Thanks to this, the risk of fraudulent, lost, or stolen cheques is reduced significantly. Further, financial information and transaction approvals are protected by a robust multi-level security framework, including password management, system controls, and multi-factor authentication.

EFT vs ACH – What’s the difference for Canadian businesses?

Feature	ACH (US)	EFT (Canada)
Common Use	Payroll, bill payments, and B2B transfers.	Payroll, supplier payments, and bill payment.
Name Used by BMO	Not supported; may default to wire transfer.	EFT
Processing Time	1-3 business days.	1-4 business days.
Used for International?	No	Global Pay

What are the fees and processing times for BMO ACH or EFT payments?

We’ll now look at the fees and processing times for both ACH and EFT payments with BMO.

BMO EFT payment times and costs

BMO’s standard EFT payments typically take 1 - 4 business days to process. The cost of EFTs varies by plan, with standard transactions usually starting at $1.25.⁷

BMO international wire transfer fees

BMO’s international wire transfer fees vary based on the method used. Sending a Global Money Transfer through BMO’s online banking costs CAD 5 per transaction,⁴ while BMO’s wire payment service for outgoing transfers charges a CAD 40 fee, plus an additional CAD 10 communication charge. Incoming wire transfers are subject to a CAD 16 fee.

Domestic EFT vs Cross-Border Wire with BMO

Payment Type	Purpose	Estimated Time	Fees
EFT (Domestic)	A way to send or receive payments in CAD or USD between Canadian financial institutions.	30 minutes	Interac e-Transfers cost $1.50 each, with the first two free every month. Domestic wire transfers range from $15 to $50, with domestic transfers usually costing less than international ones.
Wire (Cross-Border)	Transfer funds electronically from a designated U.S. Dollar Account to the U.S. Dollar account.8	1-2 business days.9	Ranges from CAD 15 to CAD 80.

Can Canadian businesses use BMO for incoming ACH payments from the U.S.?

Canadian businesses can receive ACH payments from the U.S. with BMO, as the bank provides U.S. dollar accounts and supports sending and receiving ACH transfers with U.S. institutions.²

Challenges with U.S. ACH payments to Canada

While possible for ACH payments to be sent from the U.S. to Canada via International ACH Transfer, there are some challenges. Firstly, these transfers typically incur an additional fee, which varies by provider, plus longer processing times when compared to domestic ACH payments few business days. Funds are also subject to currency conversion at an exchange rate set by the bank or payment service, which can impact the recipient.

What alternatives exist if BMO ACH isn’t enough?

Should BMO’s ACH transfer limits not meet your needs, several alternatives can help.

Fintech and platform-based solutions

Services like Zelle provide speedy person-to-person payments within the U.S., while Wise specializes in international transfers at highly competitive exchange rates and transparent fees. Additional apps like Venmo, Cash App, or PayPal exist as supplements to payment options, especially for peer-to-peer or business transactions, for greater flexibility.

Why Canadian businesses turn to Wise

Growing Canadian businesses turn to Wise, seeking more than just a way to send money, but for their fast, affordable solutions both locally and globally. With transparent pricing, no hidden fees, and real mid-market exchange rates, Wise is a clever way to manage international payments and international clients, suppliers, and freelancers. Conversion fees start as low as 0.48%, and there are no monthly subscriptions or minimum balance requirements. Better yet, opening an account is free, fully online, and simple.

Wise – a flexible alternative to BMO ACH for global business payments

BMO’s ACH services are solid for domestic transactions within North America, but businesses looking for a more global payment solution should consider Wise Business.

Key features of Wise Business

Opening a business account at Wise is free, online and easy! With Wise, you don’t lose money to monthly subscriptions or have it held up as minimum balance. You pay only for what you use. Here’s what you get for the essential and complete version for a one-time fee of 55 CAD:

Features	Essential features - without registration fees	All features for a one time payment of 55 CAD
Send money to over 70 countries	✅	✅
Wise Business Card	✅	✅
Holding and converting money across 40 currencies at the mid-market rate	✅	✅
Minimal fees starting at 0.48%	✅	✅
Local account details to receive payments in over 20 currencies	❌	✅
Direct debit to make recurring payments	❌	✅

You can always upgrade from the essential features to avail all Wise business features for a one-time payment of 55 CAD

Experience owning a Wise business account
with our demo >>>

It only takes a few minutes to set up your multi-currency account, and make the most of the mid-market exchange rate.

Step 1. Enter information relevant to yourself and your business.
Step 2. Share essential information about your business. This includes

• Business registration
• The business registered and trading addresses
• The industry you’re in
• Online presence
• Name, date of birth, country of residence - for all stakeholders
• Documents proving ownership of the business

Step 3. Enter essential information to verify your identity
Step 4. Set up and make a transfer as indicated on your account. Alternatively, you could pay the one-time fee and get account details in over 10 currencies.
Step 5. Wise sends you a confirmation email within 10 working days.

In case you add team members to the business account, they will need to be verified too.

Wise's has been reviewed and appreciated on public platforms such as:

• Trustpilot Canada: 4.3/5 stars with 256,776+ reviews
• Play Store Canada: 4.7/5 stars with 1.28M+ reviews

Cost and speed advantages

Wise’s transparent pricing typically undercuts bank wire fees and foreign exchange markups, making it an attractive alternative. Unlike some ACH or wire transfers, which come with surprise bank fees or “lifting” charges, Wise makes sure that what you see is what you pay. On top of nice savings, Wise delivers on speed with most payments arriving within hours, especially when sending to major international corridors.

Conclusion

BMO’s EFT services are reliable for domestic transfers, while Wise Business offers a more flexible solution for companies with international needs. With multi-currency accounts, real exchange rates, and seamless integrations, Wise makes it easy to send payments globally, often within hours and without hidden fees. For Canadian-based businesses making regular international payments, Wise is a great alternative - join today for free!.

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Sources:

1. Electronic Funds Transfer Payments | Scotiabank Canada
2. Global Solutions
3. Cross-Border Banking - BMO Private Wealth Canada
4. International Money Transfer: Safe & Easy - BMO Canada
5. Electronic Funds Transfers
6. Electronic Funds Transfers (EFT)
7. Current Business Account : Pay Only for What You Need - BMO Canada
8. Wire Transfer Service Description with BMO Global Pay
9. Global Pay: International Business Payments - BMO Canada

Sources verified on 20 June 2025