How To Transfer Money From The Us To Canada — Complete 2025 Guide - Beritaja
By: Albert Michael - Tuesday, 07 October 2025 19:48:03
Photo by Alexander Grey on Unsplash
Sending money across the border can feel confusing, but transferring money from the US to Canada is easier than ever with modern digital tools and trusted financial providers. Whether you need to pay family, cover tuition, or move funds for business, understanding the fees, exchange rates, and speed of different transfer methods will help you save money and avoid delays.
In this guide, we’ll explore the most reliable options — from bank wires and online platforms to mobile apps and instant transfer services — so you can choose the best way to send money from the US to Canada in 2025.
This guide compares the fastest, cheapest and safest ways to move money from the United States to Canada in 2025. It covers bank wires, Interac/e-Transfer style rails, app-based remitters (Wise, Xoom, Remitly), cash pickup networks, cross-border banking, regulatory points, and practical step-by-step checklists so you can pick the right method for your situation.
Quick TL;DR — best option by use case
- Small everyday transfers (<$1,000): Wise or an Interac-enabled route if available — low fees, fast delivery.
- Urgent cash pickup: Western Union / MoneyGram or Xoom cash payout (fast but expensive).
- Large, infrequent transfers (>$5,000): Bank wire (negotiate FX/fees) or an FX broker for better rates.
- Frequent transfers: Cross-border bank accounts (TD/RBC) or multi-currency fintech accounts (Wise Borderless / Payoneer).
How cross-border transfers work — the basics
Sending money internationally involves two separate problems: moving the value (the transfer) and converting currency (USD → CAD). Some providers perform both steps in one place (Wise, Remitly); banks often send USD to a Canadian correspondent who converts and credits the recipient. Correspondent banks and SWIFT may introduce intermediary fees and delays.
Main methods explained
1. Bank wire transfers (secure, good for large amounts)
Best when you need trusted, high-limit transfers. Expect fees and occasional intermediary charges.
- Initiate a wire from your US bank (online or in-branch).
- Provide recipient bank details (see “Required information” below).
- Bank sends the wire via SWIFT/correspondent network → receiving bank credits CAD account.
Typical cost: $25–$50 outgoing + possible intermediary fees + receiving bank fees; FX markup varies.
2. Online money transfer services (Wise, Xoom, Remitly, Payoneer)
These services route transfers using local rails and give transparent pricing. They often beat banks on effective cost and speed. Differences between providers: funding (card vs ACH), payout (bank deposit vs cash pickup), and speed (instant → 0–2 days).
3. Money transfer operators (Western Union, MoneyGram)
Good for cash pickup or sending to recipients without bank accounts. Very fast but typically more expensive due to higher FX margins and convenience fees.
4. Cross-border banking / multi-currency accounts
Banks like TD and RBC offer cross-border customers near-instant transfers between linked US/Canada accounts. Fintech multi-currency accounts (Wise Borderless) let you hold USD and convert when rates are favorable.
5. Alternative & emerging options
Mailing cashier’s checks or Canada Post money orders is slow and risky. Cryptocurrency transfers are possible but introduce volatility and regulatory complexity — not recommended for ordinary consumers right now.
What information you need (step-by-step)
Collect these before you begin — missing or incorrect details cause delays or lost funds.
- Recipient full name and physical address
- Canadian bank account details:
- Canadian routing format: 5-digit transit number + 3-digit institution number (common format: transit + institution). Example: transit 01234 + institution 001 (RBC) — check recipient's statement for the exact format.
- Or provide SWIFT/BIC of recipient bank for an international wire
- Recipient account number (varies by bank)
- Purpose of transfer (some providers require it for compliance)
- For cash pickup: recipient ID details (passport or government ID)
Fees, exchange rates & total cost (how to compare)
Two cost components matter: explicit fees (flat/percentage) and the exchange-rate margin (how far the provider’s CAD rate is from the mid-market rate). Always compare the total CAD the recipient receives, not just the headline fee.
Example provider comparison (typical ranges)
Provider typeTypical feesFX markupSpeedBest for| Major bank wire | $25–$50 | 2–5% | 1–3 business days | Large, one-off transfers |
| Wise / Borderless | Low, transparent | <1% typical | Minutes–same day | Cheap bank deposits |
| Xoom (PayPal) | Varies (funding dependent) | ~1–3% | Minutes–1 day | Card-funded, quick payouts |
| Western Union / MoneyGram | High (convenience fee) | 3–6%+ | Minutes | Cash pickup / no bank |
Pro tip: run a quick check: enter the USD amount + provider fee + provider conversion rate and compare the final CAD the recipient will get. (Interactive calculator below.)
Processing times & common causes of delay
- Instant: some cash pickup and instant remitter rails (minutes).
- Same day – 2 days: many fintech providers and local rails when funded by ACH or debit.
- 1–3 business days: typical for bank wires (depends on intermediary banks and cut-offs).
Delays happen due to KYC/identity verification, intermediary bank queues, currency conversion cut-offs, or incorrect recipient info.
Security, compliance & consumer protections
Reputable providers must perform KYC (Know Your Customer) checks and comply with AML rules. If something goes wrong:
- Keep payment receipts, confirmation numbers, and screenshots.
- Contact your bank or provider immediately to request a recall or trace.
- If you suspect fraud, report to the US Consumer Financial Protection Bureau (CFPB) or the Canadian Anti-Fraud Centre and your bank.
Tax & regulatory considerations
This is general guidance, not tax advice — consult a tax professional for your situation.
- Reporting: large transfers may trigger reporting obligations (e.g., customs/anti-money-laundering reports for transactions >$10,000).
- Recipient tax: most personal gifts are not taxable income in Canada, but income or payments for services may be taxable and should be reported to CRA.
- Payments modernization: central banks (Bank of Canada) and payment regulators are modernizing rails; expect improved speed & transparency in coming years.
How to pick the best provider — decision checklist
- Compare total CAD received (not just headline fee).
- Check funding method (ACH is cheaper; card funding is faster but costlier).
- Confirm recipient payout method (bank deposit, cash pickup).
- Check provider limits & verification timeline if sending large sums.
- Read provider refund & dispute policies.
Case studies — real examples
Case study: $1,000 tuition payment (parent → student)
A parent in Seattle used Wise to send $1,000 USD to their child’s Canadian bank account. Fee + mid-market rate meant the family saved roughly $35–$50 compared to a bank wire; funds arrived same day. (Example results will vary with live rates.)
Case study: Large property deposit (business use)
For a $20,000 USD transfer used as a deposit on a Canadian property, negotiating a bank wire fee and confirming correspondent bank routing saved the sender several hundred dollars in unexpected intermediary fees — and reduced administrative delays.
Case study: Emergency cash pickup
When an urgent family emergency required cash in minutes, Western Union cash pickup worked immediately but at the cost of higher fees and exchange-rate margins. Use only when speed outweighs cost.
Common problems and how to fix them
- Mistyped account details: contact your bank immediately to initiate a recall.
- Transfer stuck in intermediary: ask your bank for an MT103 payment trace.
- Provider delays for KYC: provide requested documents ASAP (ID, proof of address, source of funds).
Future rails, innovation & patents
Payments infrastructure is evolving — regulators and innovators are working on real-time rails, better FX routing, and settlement optimization. This will likely reduce costs and improve speed for cross-border transfers over time.
FAQs
What is the cheapest way to send money from the US to Canada?
Specialist remitters that use local rails (Wise, some FX brokers) typically provide the best combination of low FX markup and transparent fees. Always compare the final CAD delivered.
How long will my transfer take?
Minutes for instant cash pickup; same day to 2 days for most fintechs; 1–3 business days for bank wires. Verification and intermediary banks can increase time.
Can I use Interac e-Transfer from a US bank?
Generally no — Interac e-Transfer is a Canadian domestic rail and requires a Canadian bank account. Some cross-border services provide Interac payouts from within Canada.
Appendix — Checklist to send (copy/print)
- Recipient full name & address
- Recipient bank name, transit + institution numbers (or SWIFT/BIC)
- Recipient account number
- Purpose of payment and supporting documents (if required)
- Screenshots/receipts of confirmation
Sources & Further Reading
- Western Union — Send Money to Canada
- PayPal / Xoom — International transfers to Canada
- Wise — Send money to Canada (pricing & routes)
- Remitly — Send Money to Canada
- Xoom (PayPal) — Send Money to Canada
- Bank of America — How to send an international wire
- TD — Cross-border transfers (US ↔ Canada)
- RBC — Free & instant cross-border transfers
- MoneyGram — International money transfer services
- XE — Live USD → CAD exchange rates
- Payoneer — Cross-border payout solutions
- CFPB — Consumer guidance & protections (US)
- Bank of Canada — Payments system updates & modernization
- Canada Revenue Agency — Tax guidance
- World Bank — Remittances & cross-border payments data
Date accessed: October 7, 2025. These links were used as representative authoritative references. For live pricing, always verify rates directly on the provider’s site before sending funds.
