How to Send Money to Canada: A Step-by-Step Process

Transferring money from the United States to Canada requires understanding financial mechanisms and regulatory considerations. This guide covers options, required information, financial implications, and how to monitor your transfer.

Choosing Your Transfer Method

Several methods exist for sending money to Canada, each offering varying levels of speed, convenience, and cost. Understanding these options helps select the most suitable choice.

Bank wire transfers are a traditional method. Senders typically visit a bank branch or use online banking, providing recipient bank details. Funds move from the sender’s account to the recipient’s, usually taking one to five business days. This method is secure and often used for larger sums due to higher transaction limits.

Online money transfer services allow senders to initiate transfers from a computer or mobile device, funded via bank account, debit, or credit card. Recipients can receive funds directly into their bank account, through mobile wallet deposits, or cash pickup at designated locations in Canada. Transfers range from near-instant to a few business days, often providing competitive exchange rates and lower fees for smaller transfers.

International money orders are physical instruments purchased from financial institutions or postal services. The sender mails the money order to the recipient in Canada, who can cash it. This method is significantly slower than electronic transfers, taking days to weeks for delivery and processing. Money orders are suited for smaller amounts and situations where electronic access is limited.

Some digital payment platforms offer international transfers, though primarily for domestic use. They facilitate direct transfers between users, with funds held within the platform before bank withdrawal. Transfer speeds vary, from instant between users to a few days for bank withdrawals. These platforms are convenient for frequent, smaller transfers.

Information Required for Your Transfer

Before initiating any money transfer to Canada, gather all necessary information. This ensures a smooth transaction and prevents potential delays or rejections.

The sender must provide their full legal name, current residential address, and a valid form of identification. This identification is required for verification by financial institutions and money transfer services to comply with anti-money laundering (AML) regulations.

Recipient details are equally important and must be accurate. This includes the recipient’s full legal name and complete residential address. Incorrect or incomplete recipient information commonly causes transfer delays or failure.

For direct bank deposits, essential recipient banking details include the recipient’s bank name, full branch address, and the Bank Identifier Code (BIC), also known as a SWIFT code. The recipient’s full bank account number, Canadian institution number (a three-digit code), and transit number (a five-digit code) are also required. These ensure funds route correctly.

Stating the purpose of the transfer is often required for larger amounts or specific transactions. This could include family support, payment for goods or services, or investment. A clear purpose aids regulatory compliance.

Understanding Costs and Exchange Rates

Sending money internationally involves understanding fees and currency conversion costs. These impact the total amount the recipient receives.

Transfer fees vary by service provider and amount sent. Some providers charge a flat fee per transaction, while others use percentage-based fees. Tiered structures also exist, with fees changing based on transfer amount ranges. Fees commonly range from a few to tens of dollars, depending on the service and size.

Beyond stated fees, the exchange rate applied to currency conversion is a significant cost. The “mid-market rate” is the true rate at which currencies are traded between banks. Most money transfer services and banks do not offer this rate to customers. Instead, they apply a “spread” or margin. This spread is an additional cost embedded in the exchange rate, acting as profit.

For example, if the mid-market rate for converting U.S. dollars to Canadian dollars is 1.35 CAD for 1 USD, a provider might offer 1.33 CAD. The 0.02 CAD difference is the spread, reducing recipient funds. This hidden cost accumulates, especially for larger transfers. When comparing services, evaluate the offered exchange rate against the mid-market rate, not just fees. Some providers advertise “zero fees” but compensate with a larger exchange rate spread.

Completing and Tracking Your Transfer

After gathering information and selecting a method, initiate and monitor the transfer. The process varies by service, but general procedures apply.

For online money transfer services and digital platforms, initiating a transfer involves logging in, selecting the amount and currency, and entering recipient details. The system displays the total amount (including fees) and the converted amount the recipient will receive. A final review is presented before confirming, often requiring authentication like a one-time password.

If using a bank wire transfer, the process may involve visiting a bank branch to complete a physical form or accessing a dedicated section within the bank’s online portal. The form or online interface prompts for sender identification, recipient banking information, and transfer purpose. Bank personnel assist with form completion and detail verification before processing.

Upon successful initiation, the sender typically receives a confirmation or receipt. This confirmation includes a unique transaction ID, amount sent, amount to be received, and estimated delivery time. The transaction ID is crucial for inquiries or tracking.

Most online platforms and banks provide a means to track transfer progress, often through the same online portal or mobile app. By entering the transaction ID, senders can view real-time updates on fund status, from processing to delivery. If delays occur or the status is unclear, contacting customer support with the transaction ID is the next step.

Citations

U.S. Bank. “Wire Transfers.” Accessed August 25, 2025.
Remitly. “Send Money Online.” Accessed August 25, 2025.