How to Transfer Money From the US to Canada

The main ways to send money across the border

You can transfer money from the United States to Canada through a bank wire, an international money transfer service, a peer-to-peer payment app, or a currency exchange broker. Each method differs in cost, speed, and the amount you can send. Bank wires are the most common for large amounts and take one to three business days. Money transfer services like Wise, OFX, and Remitly are often cheaper for smaller amounts and can deliver funds in hours. The method you choose depends on how much you're sending, how quickly you need it to arrive, and whether you want the lowest fee or the fastest delivery.

Exchange rates matter as much as fees do. When you send money internationally, the receiving bank converts US dollars to Canadian dollars. The rate they offer may be worse than the mid-market rate you see online, and that difference is how banks and transfer services make money. Some services show you the exact rate and fee before you commit; others don't. Knowing the total cost in Canadian dollars — not just the US dollar amount you're sending — helps you compare options fairly.

Key Takeaways

• Bank wires take one to three business days and work for any amount, but fees typically run $15 to $50 USD and the exchange rate is often unfavorable.
• Money transfer services like Wise and Remitly often charge lower fees (sometimes under $5) and show you the exchange rate and total cost before you send.
• Peer-to-peer apps like PayPal and Square Cash can send money when ready but have daily or monthly limits and may charge percentage-based fees.
• You will need the recipient's Canadian bank account number, transit number, and institution number, or their name and address if using a cash pickup service.
• The total cost includes both the service fee and the exchange rate markup, so comparing only the fee can hide the real difference in what the recipient gets.

Bank wires from your US bank account

A bank wire is a direct transfer from your US bank to a Canadian bank. You initiate it at your bank's branch, online portal, or by phone. Your bank will ask for the recipient's full name, their Canadian bank account number, the transit number (five digits), the institution number (three digits), and the name of their bank. You'll also need to specify the amount in US dollars. Your bank converts it to Canadian dollars at their chosen rate and sends it through the SWIFT system, which is the international banking network.

Wires typically arrive within one to three business days, though some banks promise next-day delivery for a higher fee. The cost ranges from $15 to $50 USD depending on your bank; some banks charge less if you're a premium account holder. The exchange rate your bank offers is usually 1 to 3 percent worse than the mid-market rate, meaning the recipient gets fewer Canadian dollars than the rate you see on Google suggests they should. Ask your bank for the exact rate and total fee before you send, so you know what the recipient will receive.

Money transfer services for lower fees

Services like Wise, OFX, Remitly, and MoneyGram specialize in international transfers and often charge less than banks. Wise is known for offering mid-market exchange rates with a small markup (usually under 1 percent) and a flat fee that varies by amount; for a $1,000 transfer, the fee might be $5 to $10. OFX and Remitly work similarly. You sign up online, enter the recipient's Canadian bank details, and the money moves within hours to a few business days depending on the service and the time of day you send it.

These services require you to verify your identity before your first transfer, which usually means uploading a photo of your driver's license or passport. Some have daily or monthly limits on how much you can send; Wise, for example, may limit new users to $10,000 per transfer until you've built a history. The recipient does not need to sign up or do anything — the money goes directly to their bank account. You can see the exact exchange rate and fee on the service's website before you commit, so there are no surprises.

Peer-to-peer payment apps for speed

Apps like PayPal, Square Cash, and Wise also offer person-to-person transfers, though they work differently from their international transfer products. PayPal lets you send money to a recipient's email address or phone number; they receive it in their PayPal account and can withdraw it to their Canadian bank. The fee is usually 2 to 3 percent of the amount plus a fixed charge, and the exchange rate includes a markup. Square Cash (now called Cash App) works similarly but has lower daily limits and may not support all Canadian banks.

The advantage of apps is speed — money can arrive within minutes to hours. The disadvantage is that limits are low (often $500 to $2,000 per day for new users), fees are percentage-based so they add up on larger amounts, and the recipient must have an account with the same app or be willing to create one. These work best for small, urgent transfers between people who already use the same platform.

Currency exchange brokers for large amounts

If you're sending more than $10,000, a currency exchange broker may offer a better rate than a bank or transfer service. Brokers like OFX, OANDA, and Knightsbridge Currency Exchange work with businesses and individuals moving large sums. They often negotiate better exchange rates because they handle high volumes, and they may waive or reduce fees for large transfers. You'll typically need to call or email to get a quote, and the broker will lock in a rate for a set period (usually 24 to 48 hours) so you know exactly what you'll pay.

Brokers require more paperwork than banks or transfer services — they may ask for proof of the source of funds and the purpose of the transfer, especially for amounts over $10,000. This is standard anti-money-laundering compliance. The transfer itself works the same way as a bank wire: the broker sends the money through SWIFT to the recipient's Canadian bank account. Delivery typically takes one to three business days.

What information you need from the recipient

For a bank wire or transfer service, you need the recipient's Canadian bank account number, transit number, and institution number. The transit number identifies the specific branch; the institution number identifies the bank. Together, these form the routing information that directs the money to the right account. You can find this information on a cheque, on the recipient's online banking portal, or by calling their bank.

Some transfer services also accept the recipient's name and address instead of account numbers, especially if they offer cash pickup at a location in Canada. This is useful if the recipient doesn't have a bank account or prefers not to share their account details. Ask the service whether they support this option before you send.

Timing and when the money arrives

Bank wires and transfer services process transfers on business days only, so a transfer sent on Friday evening may not arrive until Tuesday. Some services process on weekends, but this is rare. The recipient's bank may also hold the funds for one business day before crediting them to the account, especially if the transfer is large or the account is new. If you need the money to arrive by a specific date, send it at least three to five business days early to account for delays.

Peer-to-peer apps and some transfer services offer faster delivery — sometimes within hours — but this usually costs more or is only available for smaller amounts. Check the service's website or app to see the estimated delivery time before you send. If the service doesn't show a delivery estimate, contact their support team.

Comparing total cost, not just fees

When you compare services, calculate the total amount in Canadian dollars the recipient will get, not just the fee you pay. A service with a $5 fee but a poor exchange rate may cost more overall than a service with a $15 fee but a better rate. Use each service's calculator or quote tool to see the exact Canadian dollar amount for the specific transfer you're making. Write down the fee, the exchange rate, and the total the recipient receives for each option, then choose based on the total cost and the speed you need.

Exchange rates change throughout the day, so the rate you see in the morning may be different by afternoon. If you're sending a large amount and the rate matters, ask the service whether they can lock in a rate for a set period. Most will hold a rate for 24 to 48 hours at no extra charge.

Frequently Asked Questions

Do I need to report the transfer to the IRS or CRA?

Transferring your own money between your own accounts is not taxable income and does not require reporting. If you're sending money as a gift, the US does not tax gifts, but Canada may have rules depending on the recipient's situation — they should check with a Canadian tax professional. If you're sending money for business purposes or receiving income from Canada, that may have tax implications in both countries.

What's the difference between a transit number and an institution number?

The transit number (five digits) identifies the specific branch of the bank. The institution number (three digits) identifies the bank itself. Together with the account number, they route the money to the correct account. You can find both on a cheque or by asking the recipient's bank.

Can I send money to someone else's Canadian bank account?

Yes, as long as you have their correct account details. The money goes to the account holder's name on file at the bank, so make sure the name matches. If the name doesn't match exactly, the bank may reject the transfer or hold it for verification.

What happens if I send money to the wrong account?

Contact the service or bank when ready and ask them to recall the transfer. If the money has already been delivered, you'll need to contact the recipient bank and ask them to reverse it. This can take days or weeks, and the other account holder may refuse. Always double-check the account number and recipient name before you send.

Are there limits on how much I can send?

Bank wires have no legal limit, though your bank may have internal limits based on your account history. Transfer services and apps have daily and monthly limits that vary by service and your account age. New users typically have lower limits; these increase over time as you build a history. Check the service's website or contact them to learn your specific limit.