How to Send Money From Canada to the USA (4 Easy Steps)

If you have tried sending money to the US, you likely have faced some hurdles. Read on to find out how you can do so without having to break the bank in fees!

If you are a Canadian customer, there are several options available for sending money to the US.

However, selecting a money transfer service is usually not an easy task.

There are several considerations involved in this process to ensure that you are balancing both efficiency and cost-effectiveness.

In recent times, we have seen the launch of several online transfer platforms such as Wise, Remitly, and XE that each offer their own unique set of benefits.

Depending on what you value (cheapest cost, fastest speed, etc.), each of these providers may be a worthwhile option for you.

1. Select a Money Transfer Service

The first step to being able to send money is to select the money transfer service that offers you the benefits you are looking for.

When looking to send money to the US, you have the option of using various online platforms such as Wise (previously known as Transferwise), Remitly, WorldRemit, Skrill and XE.

Alternatively, you can also use your banking provider (such as RBC, CIBC, BMO, Scotiabank, TD, etc.) to complete a wire transfer directly to your recipient’s bank account.

2. Create an Account

Assuming you are using an online transfer service, your next step would be to create an account with the requisite provider.

To do this, you would first need to download their mobile app or navigate to their website.

Once there, you can create an account by providing your personal identification details, bank account details, and other relevant information that the provider requests.

3. Enter Your Recipient’s Details

Next, you also need to enter your recipient’s details.

In most cases, you will be asked basic personal information about the recipient as well as their online banking details to ensure that the money is sent to the right account.

4. Select How Much Money to Send and Pay for Your Transfer

The last step is to select the amount of money that you want to send to your recipient, and then execute the transfer.

At this stage, you will be able to view the exact fee structure including any administrative fees, currency conversion fees, etc.

Once you have reviewed and accepted the details, the transfer will be initiated and the recipient will receive the funds in a few business days.

Most online services offer different methods of paying for your transfer.

You can often choose between two or more of: (i) direct debit, (ii) bank transfer, (iii) debit card, and (iv) credit card.

However, you will likely find that each method has different fees and processing times associated with it.

Key Considerations When Sending Money from Canada to USA

Below is a list of items you should keep in mind before transferring money from one country to another:

CAD/USD Exchange rate

1 CAD = 0.742666 USD at 9:25 PM UTC on Sunday December 04, 2022.

If you are converting between Canadian and US dollars, you should monitor the exchange rate that the provider offers and compare it to the market rate to see the differential.

While some providers may offer lower administrative fees, they may take a higher cut of the foreign exchange (FX) conversion.

It is important to know this beforehand to make the best decision for yourself.

Fees

Most online transfer platforms will charge a fee for their service.

This fee may vary based on the provider, the amount of money being sent, currency, etc.

As such, it is crucial to assess the net amount that the recipient will receive in hand to understand the total fees charged by the provider.

Speed

The total turnaround time that it takes for your recipient to receive the money from the time you send it.

Service

While this may not be a primary consideration in the way that costs and processing time would be, it is still important to know what type of customer support you can expect if there is a processing error or other barrier preventing your money from being transferred correctly.

Sending Money From Canada to USA on Laptop Using Transferwise

What Currency Does the United States Use?

The US uses the American Dollar (also called the US Dollar or USD) as its official currency.

The US Dollar is widely recognized as the single most used currency in international transactions, and has even been adopted by several other countries as their primary currency.

In the US, the Federal Reserve System (“the Fed”) is the official central bank of the nation that controls all aspects of monetary policy including the money supply.

As of August 2022, there was $2.275 trillion in money supply (i.e., the notes and coins in circulation) within the US economy.

Besides governing total money supply, the Fed also sets and adjusts interest rates in the economy to moderate inflation rates.

As of August 2022, inflation in the US was at 8.3% according to the Bureau of Labour Statistics.

Frequently Asked Questions

  • Is it safe to send money from Canada to the USA online?
  • How long does it take to send money from Canada to the US?
  • Can I send money from Canada to US for free?
  • Can you send money from Canada to USA through a bank?

Harshil Dhanky is a financial services professional based out of Toronto, Ontario with extensive experience in the Canadian banking industry across Toronto, Calgary, and Vancouver in the capital markets, asset management, and lending sectors.

In the past, Harshil has worked with a range of consumer lending websites, personal finance advisors, investment managers, insurance companies, and other financial institutions to write and edit whitepapers, articles, blog posts, and other collateral read by consumer audiences to help them make better financial decisions.

His work spans a wide range of Canadian personal finance topics including savings and retirement programs, debt management tips, mortgages and personal loans, and other key financial issues for Canadian consumers at each stage of their life.