When it comes to sending money to Canada from the United States, there are many options available, but not all the options are cheap, fast, and convenient. However, online money transfer specialist like XE.com can help you transfer money to Canada with ZERO transfer fee
If you don’t have time to read the entire article, You can quickly use the Wise (formerly TransferWise) calculator below – which is also one of the cheapest way to send money to Canada from the US.
According to the US Embassy and Consulates in Canada, there are an estimated one million US citizens living in Canada. This number includes individuals who live in Canada permanently as well as those who are staging temporarily for work, study, or other reasons.
No doubt you would be one of many who need to send money to a friend or family member in Canada, make international payments, or transfer funds between your own accounts. Whatever the reason may be, it’s important to find the most efficient and cost-effective way to transfer money to Canada.
With so many choices, it can be overwhelming to figure out the best method for your needs. In this article, we’ll explore some of the best way to send money to Canada from the US, taking into account factors such as fees, exchange rates, speed, and security.
By the end of this article, you’ll have a clearer understanding of the options available and be better equipped to make an informed decision about how to transfer your funds to Canada.
Cheapest Ways to Send Money to Canada from the US
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How to send money to Canada UK from the US via Wise?
- Go to Wise’s website and create a free account.
- After logging in, go to the “Send money” option
- Check Wise fees and exchange rate to transfer USD to CAD
- Select the type of transfer (based on the nature of the transaction)
- Fill in the recipient’s US bank details
- Select your payment option and transfer money from the US to Canada
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Best Ways to Send Money to Canada from the US
There are several ways to transfer money to Canada from the US such as
- Bank Wire Transfer
- Online money transfer providers – Like XE.com, Wise, and CurrencyFair
- Cash Pick-ups
- PayPal
Wire Transfer via US Bank
You can use your local bank to wire money to a recipient’s bank account in Canada. To do this, you’ll need to provide the recipient’s bank account number, and routing number.
This method can be expensive, and the exchange rates offered by your bank may not be the most favorable.
While banks are a reliable and convenient option for many financial transactions, they may not always be the best choice for sending money to Canada. There are a few reasons why you may want to consider alternative options:
High Fees: Banks often charge high fees for international money transfers, and these fees can add up quickly. Depending on the bank, you may be charged a flat fee or a percentage of the total amount you’re sending. These fees can range from $20 to $50 or more, depending on the bank and the size of the transfer.
Poor Exchange Rates: Banks often use unfavorable exchange rates for international money transfers, which means you may not get as much money in Canadian dollars as you would with other options. In addition, some banks may charge an additional foreign exchange fee on top of the exchange rate, further reducing the amount of money the recipient receives.
Transfer Speed: Bank transfers can take several business days to process, which may not be ideal if you need to send money quickly. Depending on the bank and the destination, the transfer may also be subject to additional processing times or delays.
Online Money Transfer Services
You can use online payment services such as XE.com, TransferWise, or CurrencyFair to send money to Canada from the US. These services allow you to transfer money using a debit card, credit card, or bank account.
Online money transfer services offer lower fees – which can be up to 10x times cheaper compared to traditional banks. XE.com doesn’t charge you any fees on international transfers, allowing you to send money to Canada without any additional costs.
Unlike high-street US banks, who can set their own exchange rate to earn profits, online Money Transfer providers offer better exchange rates than traditional banks, allowing you to get more Canadian dollars for your US dollars. This can be especially advantageous for large transfers.
Wise (formerly TransferWise) offer a mid-market exchange rate (which is the ‘real’ exchange rate that you see on Google).
Many transfers can be completed within a few hours or days, depending on the provider and destination country. With these services, you can send money to Canada online from the comfort of your own home, without the need to visit a local bank branch.
PayPal
PayPal is a popular online payment system that allows you to send money to other users. You can send money to a recipient’s PayPal account, and they can then withdraw the funds to their bank account. Note that PayPal charges a fee for international transactions.
Sending money to Canada from the US via PayPal is not recommended due to the high fee on international payments and PayPal’s exchange rates are generally not as competitive as other options, so you may not get the best value for your money when transferring to Canadian dollars.
The cost to transfer money to Canada from the US via PayPal would be around 5% of the total amount, which can be 3x to 5x times more expensive than its alternatives such as XE.com or TransferWise.
Cash Pick-Up Services
You can use cash pick-up services such as Western Union or MoneyGram to send money to a recipient in Canada from the US. The recipient can then pick up the cash at a designated location.
This can be a convenient option if your recipient doesn’t have a bank account or prefers to receive cash. However, it’s important to be aware of the potential fees and exchange rates associated with these services, as they may be higher than other options.
Additionally, it’s important to ensure that you’re using a reputable company like WesternUnion to transfer money to Canada from the US to avoid any potential scams or fraud.
Fact about money transfer to Canada
In 2020, the total amount of remittances inflows to Canada was $911 million USD, with the majority of the money coming from the United States. According to a report by the World Bank, personal transfers were the primary reason for sending money to Canada, accounting for 77% of total remittances sent to Canada. Whereas, business transfers made up 18%, while the remaining 5% was for other purposes such as travel and education.
XE vs Wise – What is Cheapest Way to Send Money to Canada from the US?
XE Money Transfer and Wise (formerly TransferWise) are two online money transfer services that offer competitive exchange rates and are considered to be one of the cheapest ways to send money to Canada from the US.
XE.com
XE Money Transfer allows you to send money to Canada for free with no fees, regardless of the amount you’re sending. Additionally, XE offers competitive exchange rates with a small markup (usually around 0.5% to 1%), ensuring that you get the best value for your money. Transfers with XE are usually completed within 1 business day, depending on the payment method.
Read Full XE Money Transfer Review
Wise (formerly TransferWise)
Wise also offers low fees and mid-market exchange rates for sending money to Canada. The fee structure for Wise is transparent, and the company provides a cost breakdown before you send your transfer. You can use the calculator above to know the cost to transfer money from the US to Canada. Transfers with Wise typically take 1-2 business days to complete.
Read the full Wise Review
Both Wise and XE.com are cheaper than traditional banks or wire transfer services, offering a low-cost, fast and safe way of money transfer to Canada.
Overall, both XE and Wise offer cost-effective options for sending money to Canada from the US, with competitive exchange rates and low fees. However, it’s important to consider the specific details of your transfer, such as the amount you’re sending, the speed of the transfer, and any additional fees or restrictions, to determine which service is the most cost-effective for your needs.
What are the Tax Implications to Send Money to Canada from the US?
Disclaimer: MoneyTransferStore does not provide any financial advice or tax-related advice. You should contact a tax advisor for detailed and professional consultation. The information provided on this blog is for the general understanding of the sender and receiver.
Tax implications for the sender in the US
There is no limit on how much you can transfer to Canada from the US.
If you are a US citizen, you can gift up to 11.18 million USD in your lifetime without paying any tax. Therefore, when you send money to Canada, you can choose if you want to pay tax on the amount, or use your lifetime tax-free exemption limits.
Moreover, you can send an unlimited amount of money to your spouse tax-free if your spouse is also a US citizen.
Michelle Miley and Ryan Cockerham (finance experts for The Nest).
Tax implications for the recipient in Canada
The Canadian Revenue Agency (CRA) generally does not impose taxes on individuals who receive money from overseas, as long as the funds are categorized as gifts. This means that most money transfers to Canada from friends and family are exempt from income tax.
There is no limit on how much you can transfer to Canada. However, any individual or business receiving more than $10,000 CAD within a consecutive 24-hour window must report the transaction to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
All the amount should be included in a single report, and should not be reported separately. However, this is mostly by done by the bank or the provider you are sending the money from.
Source: https://fintrac-canafe.canada.ca/guidance-directives/transaction-operation/24hour/1-eng
Additionally, it’s always a good idea to consult with a financial advisor or tax professional before making any significant international transfers to ensure compliance with all relevant laws and regulations.
What is the fastest way to transfer money to Canada from the US
Wise (formerly TransferWise) is an online money transfer service that allows you to send money to Canada from the US quickly and securely. Wise uses a peer-to-peer model, which means that they match your transfer with someone else who is sending money in the opposite direction. This can result in faster transfer times and better exchange rates than traditional banks or wire transfer services.
With Wise, you can send money to Canada in as little as one business day, depending on the payment method you choose. Wise offers transparent fees and exchange rates, and you can see the total cost of your transfer upfront before you send your money. Additionally, Wise offers a multi-currency account that allows you to hold and manage over 50 currencies, making it easy to transfer money to multiple countries with just one account.
One of the key advantages of using Wise to send money to Canada is the low cost. Wise charges a small percentage-based fee on each transfer, which is often lower than the fees charged by banks and traditional wire transfer services. Additionally, Wise uses real-time exchange rates with no markups, which means you get a fair exchange rate for your money.
Money Transfer to Canada FAQs
How do I transfer money from US bank to Canada bank?
To initiate a bank-to-bank transfer, you can either do it via online banking or by visiting a local bank branch.
You’ll need to provide your bank with the recipient’s name, bank name, account number, and routing number or SWIFT code. The SWIFT code is a unique identifier that helps to ensure the money is sent to the correct bank and branch. You may also need to provide additional information, such as the recipient’s address and phone number.
Once your bank has this information, they will transfer the funds directly to the recipient’s bank account. The transfer typically takes one or two business days to complete, although it can take longer if there are any issues with the transfer.
It’s important to note that bank-to-bank transfers can be expensive, with fees that vary depending on the banks involved and the amount of money being transferred. In addition, banks often offer less competitive exchange rates compared to other options like XE.com and Wise.
The best way to send money to Canada from the US is via XE money transfer. XE doesn’t charge any fee on international transfers and offers a very competitive USD to CAD exchange rate.
Can Zelle be used USA to Canada?
No, Zelle is currently only available for use within the US and its territories, and it cannot be used to send money to Canada or any other international destination.
If you’re looking to send money from the US to Canada, services like XE or Wise can be a good option to consider. Both offer competitive exchange rates, low fees, and fast transfer times.
XE Money Transfer allows you to send money to Canada from the US with no fees and competitive exchange rates. The process is simple and easy to use, and you can track your transfer online or through XE mobile app.
Wise, formerly known as TransferWise, is another popular choice for sending money to Canada from the US. They offer fast, secure, and low-cost transfers, with a transparent fee structure that’s easy to understand. Wise uses the mid-market exchange rate, which is the real exchange rate that banks use when trading with each other, and charges a small percentage-based fee on each transfer.
Can you PayPal from US to Canada?
Yes, you can use PayPal to send money from the US to Canada. However, it’s important to note that PayPal charges a fee for currency conversion, which can be quite high. PayPal’s exchange rate may also be less favorable than other methods, resulting in a lower amount of Canadian dollars received.
If you’re looking for a more cost-effective way to send money from the US to Canada, services like XE or Wise may be a better option to consider. XE and Wise offer competitive exchange rates and low fees, with no hidden costs or markups. They use the mid-market exchange rate, which is the real exchange rate that banks use when trading with each other, so you can be confident that you’re getting a fair deal.
XE Money Transfer allows you to send money to Canada from the US with no fees and competitive exchange rates. The process is simple and easy to use, and you can track your transfer online or through XE mobile app.
How much does PayPal charge for USD to CAD?
PayPal charges a fee for currency conversion when you send money from USD to CAD. The fee varies depending on the specific exchange rate being used and the amount being transferred. Typically, PayPal charge around 3.5% (above the mid-market rate) to transfer USD to CAD.
In addition to the exchange rate markup, PayPal may also charge a fixed fee for certain types of transfers, such as those funded by a credit card. For example, if you’re sending money to Canada from the US using a credit card, PayPal may charge a fee of around 3.5% of the transaction amount plus a fixed fee based on the currency and amount being sent.
Overall, PayPal can be a relatively expensive option for sending money from the US to Canada, especially if you’re transferring large amounts. It’s worth comparing PayPal’s fees and exchange rates to other providers, such as XE or Wise, to find the most cost-effective option for your needs.
Does PayPal charge fee for sending money US to Canada?
Yes, PayPal charges a fee for sending money from the US to Canada. The fee varies depending on the payment method, the amount being sent, and other factors.
For example, if you send money from your PayPal balance or a linked bank account, the fee is typically 5% of the transaction amount, with a minimum fee of $0.99 USD and a maximum fee of $4.99 USD. If you use a debit or credit card to fund the payment, the fee can be higher, typically around 2.9% of the transaction amount plus a fixed fee based on the currency being sent.
In addition to the transaction fee, PayPal may also charge a currency conversion fee if you are sending money in a different currency than your account’s default currency. This fee can vary depending on the exchange rate used and other factors.
Alternatives like XE or Wise may offer lower fees and better exchange rates to transfer money from the US to Canada.
Can I send money to a Canadian bank account?
Yes, you can send money to a Canadian bank account from the US through various channels such as wire transfers, online money transfer services, and international money transfer companies like Wise and XE.
To send money to a Canadian bank account from the US, you will need to provide several details. These typically include:
- The name of the account holder: You will need to provide the full name of the person who owns the Canadian bank account.
- The account number: You will also need to provide the recipient’s bank account number. This is a unique identifier that is typically 7-12 digits long.
- The bank transit number: The bank transit number, also known as the routing number, is a nine-digit code that identifies the recipient’s bank. This is used to ensure that the money is sent to the correct institution.
- The SWIFT/BIC code: The SWIFT/BIC code is a unique code that identifies the recipient’s bank globally. This is required for international wire transfers.
The address of the recipient’s bank: You may also need to provide the physical address of the recipient’s bank, especially if you are sending the money via a wire transfer.
What is the cheapest way to send money from USA to Canada?
When it comes to sending money from the USA to Canada, XE and Wise are two of the cheapest options available.
XE Money Transfer charges no fees for sending money to Canada, and their exchange rates are very competitive. They make money by applying a small margin on the exchange rate, which is usually much lower than what banks or other providers charge.
Wise, formerly known as TransferWise, is another great option for sending money from the USA to Canada. They also charge a low transparent fee, and offer mid-market exchange rates. Wise offers a transparent fee structure and lets you see the exact amount your recipient will receive before you make the transfer.
Overall, both XE and Wise offer fast, cheap, and secure ways to send money from the USA to Canada.
What is the fastest way to send money to Canada?
Wise is one of the fastest ways to send money to Canada from the US. With Wise, you can transfer money to Canada within a few hours, depending on the recipient’s bank processing time.
The speed of the transfer depends on the payment method and the currency you choose. Wise offers several payment options, including debit card, credit card, and bank transfer. Bank transfers may take a few hours to a few days to process, while card payments can be completed almost instantly. However, keep in mind that card payments may come with higher fees compared to bank transfers.
Wise uses the mid-market exchange rate, which is the fairest rate available, and the fees are transparent and low. There are no hidden fees, and the fees are clearly displayed upfront, so you know exactly how much you’ll be charged for your transfer.
Overall, if you’re looking for a fast and cost-effective way to send money to Canada from the US, Wise is a great option to consider.
How do I wire money to a Canadian bank account?
To wire money to a Canadian bank account, you will need to follow these general steps:
- Get the recipient’s information: You will need the recipient’s full name, bank account number, and the bank’s routing number or SWIFT/BIC code.
- Contact your bank: Contact your bank to initiate the wire transfer. You will need to provide the recipient’s information, the amount of the transfer, and any other relevant details.
- Pay the transfer fee: You will likely be charged a fee to send a wire transfer, which can vary depending on the bank and the amount of the transfer.
- Wait for the transfer to be processed: Wire transfers can take a few days to process, depending on the banks involved and any potential delays.
It’s important to note that wire transfers can be costly, with fees ranging from $15 to $50 or more depending on the bank. Additionally, the exchange rate used may not be as favorable as what you could get with other options such as XE Money Transfer or Wise (TransferWise).
Can Venmo send money from US to Canada?
No, Venmo does not support international transfers, so it cannot be used to send money from the US to Canada. Venmo can only be used for domestic payments between US-based individuals and businesses.
XE and Wise are great alternatives for sending money from the US to Canada since they are both international money transfer providers that allow you to transfer funds quickly and easily with low fees and competitive exchange rates.
What app can send us money to Canada?
There are several apps that allow you to send money from the US to Canada, including Wise (TransferWise), XE Money Transfer, and PayPal. However, it’s important to consider factors such as fees, exchange rates, and transfer speed when choosing an app to use.
The Wise (formerly TransferWise) mobile app is a popular choice for its low fees, competitive exchange rates, and fast transfers. XE Money Transfer is another option that offers competitive rates and zero transfer fees. It’s best to compare your options and choose the app that works best for your needs.
Is Cash App in Canada?
Cash App is not available in Canada. It is only available in the United States. However, there are few other money transfer alternatives such as XE and Wise (formerly Wise) that are available in Canada.
Does Canada have Zelle?
No, Zelle is currently only available in the United States. It does not have service in Canada or any other country outside of the US. However, there are other options available for sending money from the US to Canada, such as Wise and XE, which provide fast and affordable international money transfers.
Does Canada have Cash App or Venmo?
As of now, Cash App and Venmo are not available in Canada. They are currently only available in the United States. However, there are other money transfer services available in Canada, such as Interac e-Transfer and PayPal. Additionally, services like Wise and XE allow for international money transfers, including transfers from the US to Canada.
