How to Send Money to Canada From the US

Sending money across international borders, especially from the United States to Canada, is a common financial activity for many individuals and businesses. Numerous options exist for these cross-border transactions, each offering distinct advantages regarding speed, cost, and convenience.

Choosing a Money Transfer Method

When selecting a method for sending money from the U.S. to Canada, several factors influence the choice, including the amount, urgency, and desired cost. Financial institutions like traditional banks offer wire transfers, which are often considered secure for larger sums. These transfers typically take 1 to 5 business days for funds to arrive and are facilitated through networks like SWIFT. They can incur fees ranging from $25 to $50 for outgoing international transfers, with potential markups on the exchange rate. Some banks may waive fees for transfers made in foreign currencies or for very large amounts.

Online money transfer services present a popular alternative, often providing more competitive exchange rates and lower fees compared to traditional banks. Companies like Wise, Remitly, Xe, WorldRemit, and MoneyGram specialize in international remittances, with transfer speeds varying from a few seconds to a few business days depending on the service and payment method. These platforms typically display their fees and exchange rates transparently, allowing senders to see the exact amount the recipient will receive. For instance, Wise often prides itself on low fees and fast transfers, sometimes completing them in seconds. Remitly offers both “Economy” and “Express” delivery speeds, catering to different urgency needs.

Digital payment platforms, such as PayPal, also facilitate international money transfers, particularly for sending funds to another PayPal account. While convenient and often instant for peer-to-peer transfers, these services generally impose fees for international transactions and apply a currency conversion markup, typically around 4% of the transfer amount. These costs can accumulate, especially for larger transfers, making them potentially less cost-effective than specialized money transfer services for significant amounts.

International money orders offer a more traditional, non-electronic option for sending funds. While they provide a tangible record of the transaction, they are generally slower and may involve lower sending limits compared to digital methods. The fees and processing times for international money orders can vary, and they may be less convenient for recipients who prefer direct bank deposits.

Gathering Required Information

Before initiating any money transfer to Canada, it is essential to collect all necessary information accurately to prevent delays or complications. The sender must provide their full legal name, current address, and contact details, often alongside a valid government-issued identification, such as a driver’s license or passport, for verification purposes. For higher value transfers, proof of address, such as a recent utility bill, and documentation of the source of funds may also be required due to regulatory compliance measures.

Information about the recipient is equally important and must be precise. This typically includes their full legal name as it appears on their bank account, their complete physical address, and contact details like a phone number or email. Accuracy in the recipient’s name is paramount, as even minor discrepancies can lead to delays or the return of funds. Postal codes for Canadian addresses should follow the L1L 1L1 format, which differs from U.S. ZIP codes.

For direct deposits to a Canadian bank account, specific banking details are indispensable. These include the recipient’s full bank name and its address, their bank account number, and the Bank Identifier Code (BIC) or SWIFT code, which uniquely identifies the recipient’s bank globally. Additionally, Canadian bank accounts require a 3-digit Institution Number and a 5-digit Transit Number, which identifies the specific branch where the account was opened. These two numbers are often combined with a leading zero to form a 9-digit routing number for electronic transfers (e.g., 0 + Institution Number + Transit Number). Funds can be withheld or returned if any of this banking information is missing or incorrect.

Finally, the sender must specify the exact amount to be sent and the desired currency for the transfer, whether U.S. dollars or Canadian dollars. Some services may also require stating the purpose of the transfer, particularly for larger amounts, to comply with financial regulations.

Executing Your Transfer

Once all the necessary information has been gathered, the process of executing the money transfer can begin. The first step typically involves accessing the chosen service, whether it is logging into an online money transfer platform, a bank’s digital banking portal, or visiting a physical agent location.

Within the chosen platform, the sender will navigate to the international transfer section and proceed to input the collected details into the designated fields. This includes entering the sender’s personal information, the recipient’s full legal name, complete address, and contact details. The recipient’s banking information, such as the bank name, bank address, SWIFT/BIC code, the Institution Number, Transit Number, and the recipient’s account number, will then be entered precisely as gathered. The exact amount to be sent and the currency of the transfer (USD or CAD) are also specified at this stage.

Before finalizing the transaction, it is crucial to review all entered information for accuracy. Even a minor error in an account number or SWIFT code can lead to significant delays, rejections, or even the loss of funds. After confirming the details, the sender will proceed to select and connect a payment method. Common payment options include linking a bank account for an ACH transfer, using a debit or credit card, or funding directly from a service’s balance. Fees associated with the transfer and the exchange rate applied will be clearly displayed before final authorization.

Upon successful authorization of the payment, the transfer is initiated. The sender will typically receive a confirmation number or tracking ID, which can be used to monitor the status of the transfer. Most services provide estimated delivery times, and many offer notifications to both the sender and recipient as the funds progress through the transfer process until they are successfully delivered to the Canadian bank account or made available for pickup.