In recent years, money transfers between individuals and businesses have been made easier with the advent of the Interac transfer. This simple and user-friendly method has gained many followers who now use it frequently on a daily basis.
Interac e-Transfer is simple and is accepted by the vast majority of Canadian banks and credit unions. Best of all, the service is free or low cost.
Why talk about this service? Simply, to share a warning with you.
While the Interac transfer is great between trusted people such as friends and family, it is risky when used in a transaction with another business or individual. Once the transfer is accepted by the recipient, the money cannot be repatriated in case of error or problems.
One can easily imagine a situation where we agree to pay for a product to be sent to us by mail and that product is never sent or never received. The consumer then has no recourse if the merchant or the person does not agree to remedy the situation or to proceed with a refund.
Dangers are also present when purchasing goods online on MarketPlace or Kijiji. Another very plausible scenario is that of a purchase on these platforms that you decide to pay electronically and that the good turns out to be faulty once you get home. It is important to mention that the Interac transfer does not provide you with any additional insurance. It is therefore impossible to claim the money or cancel the transfer with your bank. Unfortunately, many people have a feeling of security when this payment is used when it is not.
Here is a short list of tips to consider:
- Take the time to try on a used item that looks in perfect condition. Look at it from all angles, try on the buttons, etc. An honest salesperson will have no problem with you handling the device in front of their eyes.
- A meeting in a public place is not suspicious. Privacy is important. Arrange to meet in a well-lit public place, preferably with video surveillance.
- Never prepay for an item on MarketPlace or Kijiji
- If you want the seller to hold a product for you, you can use the Interac transfer, but be careful that the recipient does not have the automatic deposit function! This will be communicated to you at the recipient registration stage. Normally, you will then be able to set up the security question and answer. Agree with the person that the answer will only be given at the time of the meeting after the goods have been checked.
- Avoid generic questions/answers that the seller could guess too easily.
- Ask for a receipt of the transaction
Technology makes money transfers user-friendly and easy. Let’s never forget that thieves are no longer just hooded people who want to break into our homes and cars. Modern thieves use many strategies to take our hard-earned money from our pockets.
The Consumer Protection Office encourages citizens to use payment methods such as debit card, credit card, check or internet services such as PayPal whenever possible. These payment methods all have a protection that allows us to dispute a payment and to repatriate it if necessary.
