What card issuers need to know about handling EFT chargebacks, guaranteed Interac payments, and recording wire transfers in the addy system.
EFT Chargebacks
External Display: Yes
Critical Function: Sets expectations around fund reversals via EFT
If a cardholder invests using EFT (electronic funds transfer), there’s a chance they could reverse the payment. This is called a chargeback. Chargebacks can typically be filed up to 90 days after the money is sent — and if one is successful, those funds will be withdrawn from your account.
As the card issuer, you won’t be able to block or prevent these chargebacks. You’ll need to manage the financial impact if one occurs, including ensuring your trust account can handle it.
Interac e-Transfers
External Display: Yes
Critical Function: Explains guarantee of funds and reduced risk
When an investor sends funds by Interac, those are considered guaranteed funds. That means once you receive them, they can't be pulled back or reversed by the sender’s bank.
It’s a safer option if you want to avoid the risk of chargebacks.
Wire Transfers
Internal Display: Yes
Critical Function: Tracks completion of investment transactions for private issuers
If you’re a Card Issuer using addy, you can manually record wire transfers received in your own bank account. These wires can be used to complete investments, but you’re fully responsible for making sure all the details are correct before closing a transaction — that includes:
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The right amount
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The right recipient (you!)
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The correct matching records in addy
If something’s off, fix it before you finalize the transaction. If you notice the error after it's been closed, you’ll need to update your records to reflect the accurate information.
Not correcting mistakes can lead to compliance issues, inaccurate investor statements, and other financial headaches down the line.