Can E-Transfer Be Reversed? What Canadian Sellers Need to Know

Short answer: a sender can cancel an Interac e-Transfer only before it is deposited. Once the money has actually landed in the recipient's account, Interac says there is no way to reverse it. The catch for sellers is the gap between "sent" and "deposited": that gap can be longer than you think, even with Autodeposit, and a few scams are built entirely around it.

This guide walks through exactly when an e-Transfer can and can't be pulled back, based on what Interac, Canadian banks and CBC reporting actually say, and what that means if you sell things on Facebook Marketplace or Kijiji. One caveat up front: every bank and credit union sets some of its own rules, so always check your own institution's terms.

What Interac says about cancelling and reversing

Interac's own consumer FAQ on cancelling an e-Transfer is blunt: once a deposit has been made, there is no way to reverse the transaction. To cancel one that hasn't been deposited, the sender logs into online banking, finds the transfer in their history and uses the cancel option.

The Interac e-Transfer Terms of Use spell out the mechanics:

• While a transfer is waiting, the sending financial institution holds the funds until they are deposited, cancelled or the transfer expires.
• Until the recipient has attempted to deposit it, or it has been automatically deposited, the sender may cancel it.
• Once Interac's records show the transfer was deposited, it is final.
• Interac can also decline to complete a transfer for reasons that include a party being involved in illegal or wrongful activity. If a transfer is cancelled for those reasons, the recipient's only remedy for non-payment is against the sender.

Interac also notes it does not hold funds and can't trace them, so if something goes wrong your first call is always your own bank, not Interac.

Before deposit: the sender can cancel

If the recipient hasn't deposited the money yet (for example, they still need to answer a security question), the sender can usually cancel. RBC, for instance, says senders have 30 days to cancel as long as the recipient hasn't accepted and deposited the funds, and that unaccepted transfers expire after 30 days. Fees and timelines differ by institution.

For a seller, this is the key point: a notification that money is "waiting" for you is not payment. Until it is deposited, the buyer can take it back.

Autodeposit: safer, but not instant everywhere

Autodeposit sends money straight into your account with no security question. RBC describes Autodeposit transfers as processed and not reversible, and TD notes that because the funds deposit automatically, they can't be intercepted by a third party. That's why many sellers switch it on.

But a 2023 CBC Go Public investigation into cancelled Autodeposit e-Transfers showed the limits. An Edmonton woman selling power tools on Kijiji watched the buyer send $480 to her Autodeposit email and saw a confirmation number. The money never arrived: her bank told her the transfer was cancelled about 90 minutes later. In CBC's own test, transfers sent from the big banks to Autodeposit accounts could not be cancelled, but some credit unions let senders cancel for more than half an hour, even though the sender's screen said the transfer was complete. Interac told CBC that processing time depends on the fraud checks each sending and receiving institution chooses to run.

The lesson from the fintech expert CBC interviewed: you are not really protected until you see the money settled in your account by checking your balance. Not the buyer's phone screen, not a confirmation number.

After deposit: can the money still be clawed back?

Under Interac's rules, a deposited transfer is final, and the sender cannot cancel it. That doesn't mean a deposit is guaranteed to stay in your account in every situation. Access Credit Union warns of marketplace buyers who pay with stolen bank accounts or credit card details: a few days later the e-Transfer is cancelled, or the money is taken back because of the original fraud. In other words, if the money you received came from an account that was taken over, the banks involved may investigate, and you could end up without the item and without the payment.

How this plays out depends on the institutions involved and the specific case. No public source sets one universal rule here, so if a bank contacts you about a received transfer, ask them directly what they are doing and why.

The scams built around "reversing" an e-Transfer

The "request money" trick

National Bank describes a money request scam aimed at online sellers: instead of sending you an e-Transfer, the "buyer" sends a money request. If you click accept without reading carefully, you are the one sending them money. A real payment never asks you to approve sending funds.

Fake e-Transfer links (reverse fraud)

CBC Montreal reported in 2025 on fake e-Transfer links targeting Facebook Marketplace sellers, sometimes called reverse fraud. The scammer sends an official-looking link, the seller enters their banking login to "claim" the payment, and the scammer uses that access to e-Transfer money out of the seller's account. Montreal police told CBC they had seven reports between January and April 1, 2025, and none in previous years. The RCMP has warned that these emails often come from generic providers like Gmail, which financial institutions don't use.

"Pending," "on hold" and "business account" messages

Some fake notices claim your payment is pending, held in escrow, or can only be released if you upgrade to a business account, often by sending money that will supposedly be refunded. The Financial and Consumer Services Commission of New Brunswick points out that Interac does not offer escrow services and does not send attachments with notifications. Access Credit Union describes the business account version: the "refund" never comes. For more on these, see our guide to fake e-Transfer scams on Kijiji and Facebook Marketplace.

Can it be reversed? Scenario table

How to verify a real e-Transfer before you hand over the item

1. Never deposit from a link. Open your bank's app or type its website yourself and look for the transfer there.
2. Check your balance, not the buyer's screen. A confirmation number on someone else's phone proves nothing.
3. Read the notice carefully. A money request is asking you to pay. A payment never needs your approval to send funds.
4. Watch the sender address. Generic email providers, attachments, generic greetings and mentions of escrow or business accounts are red flags.
5. Forward suspicious notices to phishing@interac.ca, as Interac recommends.
6. Turn on Autodeposit to cut out interception and security-question tricks, while remembering it isn't a guarantee on its own.

Is e-Transfer safe for selling?

For small sales with a buyer standing in front of you, e-Transfer works well if you follow one rule: the item doesn't leave your hands until the money is sitting in your balance. Where it gets risky is higher-value items, buyers in a hurry, anyone who wants to "pay" before seeing the item, or anyone sending links. Meeting in a public spot helps too; see our list of safe exchange zones in the GTA and our full guide to Facebook Marketplace scams in Canada.

Where escrow fits

The core problem with e-Transfer for strangers is timing: the seller wants proof of payment before handing over the item, and the buyer wants to see the item before paying. Escrow solves that by having a third party hold the money in the middle.

With LockNDeal, the buyer locks the payment before the meetup, so the funds are held and you know they are committed. You meet, the buyer inspects the item, and when they're happy you give them a unique 4-digit code. They enter it and you're paid instantly, then you cash out to your bank by e-Transfer. Sellers can also set a deposit, so a buyer who no-shows pays a no-show fee from it. You can read more in our explainer on escrow for marketplace deals in Canada.

If you've already been scammed

1. Call your bank's fraud line right away. Interac can't trace or recover funds, so your bank is the one that can act.
2. Report it to your local police.
3. Report it to the Canadian Anti-Fraud Centre online or at 1-888-495-8501.
4. Change your online banking password if you entered it anywhere suspicious.

Our step-by-step guide on what to do if you're scammed on Facebook Marketplace covers the rest.