If you have tried sending money to the US, you likely have faced some hurdles.
If you are a Canadian customer, there are several options available for sending money from Canada 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), each of these providers may be a worthwhile option for you.
4 Steps to Send Money to the US
1. Select a Money Transfer Service
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 or XE.
Alternatively, you can also use your banking provider (such as RBC, CIBC, BMO, Scotiabank, TD) to complete a wire transfer directly to your recipient’s bank account.
2. Create an Account
Provide your personal identification details, bank account details, and other relevant information that the provider requests.
3. Enter 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. Choose Funding Method and Send
You can often choose between paying via direct debit, bank transfer, debit card, and credit card with each having different fees and processing times.
At this stage, you will be able to view the exact fee structure including any administrative fees and currency conversion fees.
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
Current CAD/USD Exchange rate:
1 CAD = 0.735051 USD at 5:24 AM UTC on Wednesday March 29, 2023
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.
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.
The total turnaround time that it takes for your recipient to receive the money from the time you send it.
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.
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?
The safest way to transfer money online is through a reputable money transfer service provider that upholds full compliance with its requisite regulatory authority.
As a customer, you should check prior customer reviews, run a Google search to check for any concerning articles, and visit the company’s website to determine whether it is a trustworthy provider or not.
While no online transfer service is 100% safe, reputed companies will have stringent safety measures in place to protect their customers’ money.
- How long does it take to send money from Canada to the US?
Depending on which provider you use and your method type (credit/debit card, bank transfer, etc.), you can typically expect a processing time that ranges between 1 to 5 business days.
- Can I send money from Canada to US for free?
The short answer is no.
Even if someone advertises ‘zero fees’ in their marketing materials, you usually will have to pay an exchange rate that is unfavourable compared to other providers.
- Can you send money from Canada to USA through a bank?
Yes, the banks offer a wire transfer service to transfer money to US accounts.
However, this wire transfer service typically tends to be slow and potentially expensive with fees ranging from $30 to $70 depending on the bank.