How to Send Money to Someone in Canada From the US

Sending money from the United States to Canada is a frequent necessity for many individuals, whether for family support, cross-border transactions, or other financial obligations. Navigating the various methods for these international transfers can seem complex, given the different systems and requirements involved. This guide aims to demystify the process, providing a clear understanding of the options available to ensure funds reach their Canadian destination efficiently and securely.

Key Factors for Transfers

Before any money transfer, consider key factors influencing cost and speed. Exchange rates are a primary consideration, determining how much CAD your USD converts into. Rates fluctuate, so check real-time rates from multiple providers for a favorable conversion. Even a small difference can impact the final amount received.

International transfer fees vary widely, including fixed charges, percentage-based fees, or hidden markups. Some services advertise “no fees” but often recoup costs through less competitive exchange rates. Scrutinize the total cost, including explicit fees and exchange rate margins. Transfer limits (minimum and maximum) are another consideration, as services impose varying restrictions.

Transfer speed is a significant factor; some methods offer near-instant delivery, others take several business days. Urgent transfers cost more. Security is paramount; use reputable services with robust encryption and fraud prevention. Choose transparent providers regarding security protocols and regulatory compliance.

Online Money Transfer Services

Digital platforms streamline sending money from the US to Canada, often with competitive rates and lower fees than traditional banks. Services like Wise (formerly TransferWise), Remitly, and Xoom operate primarily online, allowing users to initiate transfers from a computer or mobile device. The process involves creating an account, requiring identity verification, and linking a payment method (bank account, debit, or credit card).

After setup, enter the USD amount and recipient’s details. For direct deposit, you need the recipient’s full name, address, bank name, account number, and often the bank’s SWIFT/BIC code. Some services also require the Canadian institution and transit numbers for correct routing.

Platforms display the exchange rate and fees upfront, showing the exact CAD amount your recipient will receive before confirmation. Payments can be funded via ACH, wire transfer, or card, with varying speeds and fees. Wise often processes transfers to Canadian bank accounts in seconds or minutes; other methods might take 1-3 business days.

Bank and Wire Transfers

International wire transfers are a common method for sending larger sums from the US to Canada. Wire transfers move funds directly between bank accounts through a secure network. Though secure, they can incur higher fees ($25-$50+) than online services, and bank exchange rates may be less competitive.

To initiate a wire transfer, you need precise recipient bank account information. This includes their full name, address, Canadian bank’s full name, address, account number, and the bank’s SWIFT/BIC code. Canadian banks also use a unique three-digit institution number and five-digit transit number, forming a routing number, often required for accurate fund routing.

Initiate a wire transfer at your bank branch, through online banking, or sometimes via their mobile app. Wire transfers often arrive within 1-5 business days, though timing depends on the banks. ACH transfers, common for domestic US transactions, are generally not used for direct international transfers to Canada; international bank transfers primarily use the wire transfer network.

Digital Payment Platforms

Digital payment platforms like PayPal offer another way to send money to Canada, often using an email address or username. PayPal users can send funds to another PayPal account in Canada, and the recipient can withdraw them to a linked bank account. Primary information needed is usually the recipient’s email or PayPal username, though direct bank transfers via PayPal’s Xoom may require more detailed banking information.

While convenient, PayPal’s international transfer fees and exchange rates can be less favorable than dedicated services. Personal payment fees typically include a percentage of the amount sent, plus a substantial currency conversion fee (often 2.5% to 4.5%+ of the transfer value). Additional fees may apply if a credit or debit card funds the transfer. Payments between PayPal accounts are generally quick, often instant, especially if the recipient has an account.

Zelle, popular for quick domestic transfers, does not support international transactions. Both sender and recipient must have US-based bank accounts and mobile phone numbers for Zelle to function, so it cannot be used to send money directly to Canada.

Alternative Money Transfer Methods

Beyond digital and traditional banking, alternative methods exist for sending money to Canada, though generally less efficient or widely used for routine transfers. International money orders, from some banks, offer a paper-based option. However, USPS no longer sells international money orders for Canada, nor does Canada Post cash USPS-issued ones. While some private services or banks might offer them, they typically have maximum limits ($1,000) and are considerably slower than electronic methods, often taking days or weeks to clear.

Personal checks and bank drafts are also less common options for international transfers to Canada. A personal check from a US bank can be deposited into a Canadian bank, but clearing times can be extensive (weeks), and Canadian banks may charge significant fees for processing foreign checks. Bank drafts, similar to cashier’s checks, are issued by a bank and guarantee funds, making them more secure. They are typically used for larger, less frequent payments, converted at the bank’s exchange rate at issuance. Acquiring a bank draft usually requires an in-person visit, and the recipient must physically deposit it, involving delays and additional fees for clearance.