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ScotiaConnect EFT Payments: Payments Canada AFT Batch Origination

ScotiaConnect originates Canadian Electronic Funds Transfers through the Payments Canada AFT (Automated Funds Transfer) rail — the same infrastructure that carried 9.5 billion items in 2024. Files are composed directly in the portal, uploaded as Standard 005, or posted via API in JSON that mirrors the CPA 005 schema.

Credit AFT powers payroll, supplier disbursements and refunds. Debit AFT powers Pre-Authorised Debits for membership fees, mortgage payments, utility collections and insurance premiums. NACHA cross-border AFT reaches US beneficiaries via the International ACH Transaction format. Every batch passes through dual-control, balance-check and Payments Canada rules validation before release.

Upload an EFT File Request AFT Originator ID
ScotiaConnect EFT batch dashboard showing Standard 005 file upload with credit AFT payroll batch and dual-control release queue

Operational Brief

How AFT batches flow from file upload through Payments Canada to receiving institutions.

Standard 005 File Specification

The CPA 005 file is a 1,464-byte fixed-width format with header (A record), credit detail (C), debit detail (D) and trailer (Z) records. Key fields include originator short name, originator CPA identification (AFT Originator ID issued by Scotiabank), settlement date, transaction type code, payee/payor name, institution number, transit number and account number. Optional X (reject) and Y (return) records flow back from receiving institutions post-settlement. ScotiaConnect validates the entire file at upload and flags malformed records before any AFT Originator ID exposure.

Originator ID & Due-Date Math

Before first batch, Scotiabank issues an AFT Originator ID (10-digit CPA identifier) tied to the settlement chequing account. The originator ID is printed on the beneficiary's bank statement, so naming consistency matters for reconciliation. Due date math: for credit AFT, release by 11:00pm ET two business days before due date (or one day before with Same-Day EFT enrolment). For debit AFT, release three business days before due date. Weekends and Canadian statutory holidays are excluded — the ScotiaConnect calendar auto-skips non-business days.

AFT Transaction Code Reference

The most commonly originated transaction codes in ScotiaConnect EFT batches.

AFT CodeDescriptionSettlement DaysUse Case
200Payroll Deposit (Credit)T+2 standard, T+1 Same-Day EFTDirect deposit employee pay
450Account Transfer (Credit)T+2Refunds, intercompany transfers
461Supplier Payment (Credit)T+2Accounts payable disbursements
370Pre-Authorised Debit (Debit)T+3Membership, subscription, loan collection
381Tax Payment DebitT+3CRA source-deductions (PAD)
IATNACHA Cross-Border ACHT+2USD payroll/supplier to US beneficiaries

Credit AFT, Debit AFT & Pre-Authorised Debit Rules

Payments Canada Rule H1 compliance built into every batch.

Credit AFT: Payroll, Supplier & Refund Disbursements

Credit AFT pushes funds from your Scotiabank chequing account to Canadian beneficiary accounts at any CPA member financial institution. Typical use cases are bi-weekly or monthly payroll (see Payroll), supplier payments (see Vendor Payments), expense reimbursements, tax refunds and consumer rebates. Files can contain up to 99,999 detail records per batch; larger runs split across multiple files with shared originator short name for statement consistency.

For time-critical credit AFT, the Same-Day EFT service moves standard T+2 to T+1 settlement. Enrolment requires pre-authorisation and a higher per-item fee. Common Same-Day EFT use cases are termination payroll, urgent supplier cures and legal settlement disbursements.

ScotiaConnect AFT credit batch upload with 1464-byte Standard 005 file preview and dual-control release queue for payroll run
ScotiaConnect Pre-Authorised Debit PAD Payor Agreement capture with 10-day personal PAD notice rule and cancellation workflow

Debit AFT & Pre-Authorised Debits

Debit AFT pulls funds from a consumer or business account with the payor's prior authorisation. Payments Canada Rule H1 governs Pre-Authorised Debit agreements: personal PADs require a written agreement (paper or electronic), minimum 10 calendar days notice for the first debit and 30 days notice for variable amount changes. Business PADs allow more flexibility but still require signed authorisation. ScotiaConnect stores PAD Payor Agreements with originator-assigned reference numbers for audit.

Returns come back through Payments Canada with codes: 901 NSF, 903 account closed, 905 payment stopped, 907 no such account, 908 funds not cleared. ScotiaConnect displays returns with original detail line and lets operations staff initiate re-presentment (max two within 30 days per Rule H1) or cancel the PAD for repeated failures.

AFT Volume at Scale

Canada's most-used payment rail outside of Interac and card networks.

9.5BCanadian AFT Items (2024)
99,999Max Records per Batch
T+1Same-Day EFT Settlement
10 dayPersonal PAD Notice Rule

Returns, Reversals & NACHA Cross-Border

What happens after the file leaves ScotiaConnect.

Return & Reversal Handling

Returns post back to the originator chequing account typically T+3 to T+5 after settlement. ScotiaConnect's EFT returns dashboard groups returns by reason code and links to the original detail line. Reversals — where the originator made the error (wrong amount, duplicate file) — must be initiated within 90 calendar days. The originator certifies the error in ScotiaConnect; Scotiabank transmits the reversal request to the receiving institution which debits the payee's account if funds remain.

NACHA Cross-Border to US Beneficiaries

Cross-border EFT to US accounts uses the International ACH Transaction (IAT) entry class under NACHA rules. Scotiabank works with US-based correspondents to inject CAD/USD-denominated batches into the Federal Reserve ACH network. Settlement to US receiving banks is typically T+2. For sub-USD $10,000 supplier or payroll disbursements bound for US beneficiaries, NACHA is significantly cheaper than SWIFT — see the complementary wire transfers and international payments pages for comparison.

Frequently Asked Questions

Payments Canada AFT specifics for ScotiaConnect originators.

What is the difference between EFT and AFT in Canada?
EFT (Electronic Funds Transfer) is the consumer-facing label for any electronic movement of funds between Canadian bank accounts. AFT (Automated Funds Transfer) is the specific Payments Canada batch rail that carries most EFT volume — rule H1 for credit AFT and debit AFT under the Canadian Payments Association. In ScotiaConnect, EFT origination means uploading or composing an AFT batch in Standard 005 file format for processing overnight through Payments Canada's retail payments infrastructure.
What file format does ScotiaConnect accept for EFT batches?
ScotiaConnect accepts the Payments Canada Standard 005 (CPA 005) 1,464-byte fixed-width file, which is the national format for AFT origination. Record types include A (header), C (credit detail), D (debit detail), Z (trailer) and optional X (reject) and Y (return) records. ScotiaConnect also accepts CSV uploads that it converts to Standard 005 server-side, and direct API ingestion for ERP-integrated clients using JSON payloads that mirror the CPA 005 schema.
How many business days before pay date must an EFT file be submitted?
Credit AFT files must be released by 11:00pm ET two business days before the due date for standard settlement, or one business day before using Same-Day EFT. Debit AFT files require three business days lead time per Payments Canada rules. Missing cutoffs reschedules the entire file to the next available window — ScotiaConnect enforces cutoff validation at release time.
How are EFT returns and reversals handled?
Returns flow back through Payments Canada with standard reason codes (901 NSF, 903 account closed, 905 payment stopped, 907 no such account, 908 funds not cleared). ScotiaConnect posts returns to the originator's chequing account and displays them in the EFT returns dashboard. Reversals of erroneous credits must be initiated within 90 calendar days. See Transaction Reporting for return reconciliation.
Can ScotiaConnect originate cross-border ACH to US beneficiaries?
Yes. Cross-border EFT to US beneficiaries uses NACHA PPD and CCD entry classes through the International ACH Transaction (IAT) format. Scotiabank acts as the originating depository financial institution in partnership with US correspondents. Settlement is T+2 to US receiving banks. USD-denominated payroll or supplier disbursements bound for US accounts route through this rail rather than SWIFT for better cost economics on sub-USD $10,000 amounts.

Related Services

Complementary ScotiaConnect payment and treasury modules.

Wire TransfersLynx domestic and SWIFT international wires for high-value, time-critical payments. Bill PaymentsBiller-network channel for CRA, utilities and 7,000+ Canadian billers. PayrollCredit AFT direct deposit integrated with ADP, Ceridian, Wagepoint and QuickBooks Payroll. Vendor PaymentsSupplier AP automation with ERP connectors and virtual cards. International PaymentsSWIFT wires and Pacific Alliance same-currency corridors. Treasury ManagementZBA, sweeps, positive pay and lockbox processing. Transaction ReportingMT940, BAI2 and CSV feeds for ERP reconciliation. User ManagementRole-based access and dual-control configuration.

Commercial Banking Portal — Topic Cluster