Understand which payment types are truly safe to use, how EFTs differ, and what it means when a Card accepts only settled funds.
🔐 What Are “Guaranteed Funds”?
Guaranteed funds are payment types that are cleared, final, and non-reversible. Once received, they can be confidently used to:
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Allocate investment units
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Initiate distributions
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Transfer to issuer accounts
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Reconcile trust ledgers
Not all payment methods qualify. Understanding which ones do — and which ones carry risk — is critical for issuers and dealers managing trust accounts.
✅ Guaranteed Payment Types
These are considered safe and final once received in the trust account:
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Interac e-Transfers
Final upon receipt. These are non-reversible and cleared immediately. -
Wire Transfers
Final once cleared. There is no chargeback mechanism.
⚠️ EFTs: Not Guaranteed
Electronic Funds Transfers (EFTs) are not guaranteed, even after they appear in the system as “cleared.”
Here’s why:
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Most Canadian banks clear EFTs in 7 business days.
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But EFTs remain reversible for up to 90 calendar days under standard banking chargeback rules.
So while they may show up in a member’s wallet or in the trust ledger shortly after being sent, they can still be pulled back, leaving the issuer or dealer at risk.
🧾 addy’s Role in Fund Acceptance
addy does not restrict or prevent issuers or dealers from accepting EFTs. But:
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EFTs are not considered guaranteed funds.
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It’s up to the Issuer and/or Dealer to decide whether to accept them, and when they consider those funds “safe.”
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Some choose to wait the full 90 days before allocating units or transferring funds from trust.
🔐 What Are “Settled Funds”?
Settled funds are payments that have fully cleared and are no longer at risk of being reversed — even by the sending financial institution.
They’ve passed through any applicable clearing periods and are outside the standard chargeback window (e.g., 90 days for EFTs in Canada). Once a payment is settled, it’s considered safe to use for:
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Allocating units
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Disbursing funds
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Transferring to issuer accounts
🧯 Settled ≠ Guaranteed
These terms are sometimes used interchangeably, but they mean slightly different things:
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Guaranteed funds (like Interac and wires) are final upon arrival — no chargeback risk from the start.
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Settled funds can include non-guaranteed payments (like EFTs) that have become irreversible over time — usually after a 90-day window.
In short:
All guaranteed funds are settled, but not all settled funds were guaranteed to begin with.
This distinction matters when managing fund risk, investor allocations, and trust account activity.
🧍♂️ What Does “Settled Funds Only” Mean?
Issuers can choose to accept only payment methods that are guaranteed — i.e., Interac and wire — by creating a Card that does not enable EFTs.
This configuration is referred to as a “Settled Funds Only” Card.
🛠 How It Works:
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Each investment opportunity on addy is tied to a “Card.”
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The Card Issuer (typically the Dealer or Issuer) selects which payment types are allowed when setting it up.
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If EFT is not selected, then members won’t even see it as an option at checkout.
Once the Card is live, the fund acceptance settings cannot be changed. If changes are needed, a new Card must be issued.
👀 Wallet View ≠ Fund Safety
Even if an EFT appears in a member’s wallet after the 7-day clearing period:
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That does not mean the funds are guaranteed.
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Wallets reflect what is cleared, not what is final.
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If a reversal occurs during the 90-day window, the wallet and trust ledger will be adjusted retroactively.
🧠 Summary
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Guaranteed = Interac and wire.
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EFTs = Not guaranteed for 90 days.
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The Card Issuer controls which payments are allowed.
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“Settled Funds Only” = Interac and wire only — no EFT risk.
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Always match your allocation and disbursement timing to your fund risk tolerance.
Need help setting your Card’s fund acceptance rules? Our team is happy to guide you before launch. Just reach out.