5 best options to send money from Canada to US

We have looked at many ways of sending money overseas on adamfayed.com in recent articles.

This has included a review of Western UnionSkrill money and asking whether MoneyGram is safe

This article will ask how people can send money from Canada to the United States.

This is something which is often required by locals, expats living in Canada and people who have dormant accounts.

For any questions, or if you are looking to invest, you can contact me using  this form, or use the WhatsApp function below.

Often times, especially for expats, it makes sense to invest money in a portable way, as opposed to sending money home to invest.

Introduction

More than a hundred years have passed since people from all over the world began to travel to Canada in search of a better life. Today this process has by no means stopped. 

Many people move to this country for permanent residence and are not disappointed in it. However, in contrast to the situation a century ago, today’s immigrants do not interrupt communication with family and friends in their countries. 

On the contrary, they try to help their relatives, parents and children, doing it in material way. In this regard, the question arises of how you can transfer money from Canada to US and vice versa.

The reasons people generally want to transfer money from Canada to the United States, or vice versa, can be very different. For example, funds can be sent to their children in North American for schools or universities’ payments. 

But whatever the reason is, the sender always wants to use a fast, convenient and reliable way to transfer money. To help readers make the right choice, we will tell you about all the possible options of the money transfers, starting from the cheapest ones and finishing with options that are more expensive.

Why there is a need to transfer money between Canada and US?

Except for moving to Canada to work and send money home, there could be other main reasons of low cost transfers, let’s see them.

It is no secret that when leaving their homeland, people always bring a certain amount of money with them to Canada in order to live there for the first months. 

Canadian law allows you to bring any amount with you. If it exceeds C $ 10,000, then it only needs to be entered in the declaration. However, it is far from always possible to sell all their property by the time of departure. 

For this reason, it is necessary to find a way to transfer money for a sold house or apartment to Canada. From the point of view of taxation of such amounts, there are no particular problems. Canadian tax authorities can ask for proof of the origin of the money. 

The availability of documents for the sale of real estate in your country will satisfy them. And such amounts will not be recognized as income. Anyway, this income is not received in Canada. 

In addition to immigration, the need to send money to Canada may be associated with financial support for children who study in this country.

Much more often there is a need to transfer funds from Canada to your country. After all, the income level in Canada is incomparably higher. This means that a person who works or has his own business in Canada can help his/her parents and other relatives living. 

From the point of view of many countries’ legislation, such receipts are considered as income and must be included in the Declaration of Income. 

However, transfers in the amount of less than $ 5000 are bank secrets. For this reason, it is up to the recipient to declare such income. 

Moreover, with the right approach, you can always prove that these transfers are not income, since they are not payments for goods, works or services.

Okay, so we’ve clarified everything with the purposes of sending money and now let’s see how you can process the transfer and what financial service providers you better contact.

How to transfer money from Canada to US?

The choice of the method of transferring funds from Canada to the USA and should be approached competently, even if you already have such experience.

  • Bank transfers

International bank transfers are carried out using the SWIFT system, which means this is being processed from your bank account to your recipient’s bank account, from card to card or you just pay cash and mention the recipient’s account.

In order to transfer money, the sender needs to know the specific SWIFT code of the receiving bank, its BIC, location, as well as the international bank account number of the recipient in the USA or Canada. 

Some credit organizations do not set a limit on shipments. However, for the purposes of currency control, banks may request the purpose of payment and supporting documents. 

For example, if the money is transferred to pay for studies, then you will have to attach an agreement with the educational institution, and if the amount is intended for a close relative, then you will need documents proving your relationship with the recipient – a marriage certificate, birth certificate, and so on.

This method has disadvantages. First, the transfer can take up to five business days. Secondly, to conduct an international transaction, you need to know specific banking information and thirdly bank transfers are more expensive than other options.

Most large banks offer several options for transferring money abroad, but often it will not be possible to do this without opening a bank account. The following shipping methods are possible:

  • From account to account. In order to make such a transfer, both the sender and the recipient must have a bank account.
  • Cash to the account. This method is suitable for those who do not have a bank account and who, for some reason, do not plan to open one. The sender in this case must appear at the bank with all the necessary banking information and a document confirming his identity, and then deposit money for transfer to the cashier.
  • From card to card. The method is suitable for holders of bank cards. You can transfer money in this way quickly, but the transfer fee can be 7-10% of the transaction amount.
  • International money transfer systems

Here it is the best way about what we will talk. This is the fastest and most popular way to transfer money from Canada to US and vice versa. 

If you need to transfer money urgently, you can do it through the money transfer system. There are two ways to send money, depending on the availability of services for a particular money transfer system: at a branch or on a website.

In this way, about 65% of the money is moved. The advantage of this method is its simplicity, absolute legality, comfort and of course low fees. 

To transfer money in cash, you do not need to open an account or knowledge of specific banking information, it is enough to come to one of the service points with a passport. The sender needs to indicate the full name of the recipient and the country of destination.

You don’t even need to leave home for online translation. You just need to have access to the Internet and a card issued by your local bank. But not all money transfer systems provide an opportunity for online transactions to the USA or Canada.

So, today there are several international systems that are represented in any more or less developed cities or Canada. The most famous of them are the following systems:

  • Western Union
  • MoneyGram
  • TransferWise
  • World Remit
  • Remitly

About these companies we are going to talk now. We will try to briefly but comprehensively show all the information about the transferring companies, show their ups and downs and other essential points. And to start, let’s begin from Western Union.

  1. Western Union

Western Union is one of the oldest, largest and leading money transfer providers in the industry with over 550,000 locations in over 200 countries and territories. Unlike many providers, Western Union offers both domestic and international transfers; the ability to send and receive cash abroad quickly is his specialty.

Customers can also send money online via the Western Union website and mobile app to bank accounts, agent offices and mobile wallets.

But Western Union has a complex pricing structure and its FAQs lack guidance for some key customer situations, such as canceling a transfer before delivery.

In addition, the company has failed to protect consumers in the past. He agreed to pay $ 586 million in a 2017 settlement with the Department of Justice and other government agencies for failing to prevent electronic fraud on his platform.

With Western Union, money can be received in more than 125 currencies and in several ways (the options for sending and receiving depend on the country): in cash from an agent or through an ATM, to a bank account or to a mobile wallet.

Money is often available within minutes of being sent. You can pay by money order in cash, debit or credit card, or from your bank account. For some countries there are also bill payment services.

Money transfer limits vary depending on which service you choose and your transfer history, as well as the location of the sender and recipient, payment and payout methods.

Pros:

  • Great option for people who need to send or receive physical cash.
  • Best for people sending to places not widely covered by other providers, such as prisons and U.S. military bases overseas.
  • Low minimum transfer amount of $1.00.
  • Option to send money in minutes.
  • Transfer to a wide range of countries.
  • 24/7 customer service.

Cons:

  • Not the cheapest option depending on transfer location.
  • Not all channels are available in every country.
  • Exchange rate margins are not transparent.
  • Difficult to compare costs because the fee and exchange rate can vary significantly.
  • Maximum transfer limits, which is $2,999.99 per online money transfer.
  1. MoneyGram

MoneyGram is another largest and oldest money transfer companies in the world. This very well trained service has a huge number of agency locations scattered all over the world and all kinds of presence in at least 200 different countries.

The company offers a wide range of services, such as sending and receiving cash, as well as the possibility of receiving money at retail outlets.

While it is used by a large number of people around the world, MoneyGram also seems to attract its fair share of detractors and negative reviews.

The MoneyGram online service allows you to send and receive money in over 20 countries via the MoneyGram mobile app using a debit card, credit card, or bank account (US and Canada only).

In some countries, your money order may be credited to the recipient’s bank account, mobile wallet, or prepaid card; or even deliver in cash directly to the recipient’s home!

MoneyGram’s extensive network of dealerships and its availability both online and offline make it a very convenient service that meets the needs of most people.

Its size and long track record also ensure that your money is safe when in the hands of MoneyGram.

The downside to the MoneyGram service, however, is that transferring cash abroad can be costly, especially for some countries, as MoneyGram often charges higher fees and lower exchange rates than those offered by specialized online providers.

Pros:

  • Global network
  • Easy to use
  • Flexible delivery, such as cash pickup
  • Funds available almost instantly
  • Massive international transfer network
  • Fast delivery, including same-day transfers to bank accounts in some countries

Cons:

  • Can be pricey
  • Low transfer limits
  • Poor reputation for customer service
  • Outside the US and Canada, you can only pay with a debit or credit card, or in cash at an agent location
  1. TransferWise

Focused on making global transfers between banks, TransferWise is cheaper than a regular local bank to send money abroad and is transparent about the exchange rate and applicable fees. 

There are 40 currencies available to send and receive, although you can send money in 27 more foreign currencies.

Ideally, choosing the best overseas money transfer provider starts with a helpful service that has offices in your country of residence, this comes with in-house service and security benefits.

In addition to their international money transfer service, once you sign up, you can use the TransferWise limitless account card, which allows you to accept money in Pounds Sterling, Euros, US Dollars and Canadian Dollars and store up to 40 currencies, much like having a local bank account in the US, UK, Canada and many other countries and it’s easy to finance. 

TransferWise is extremely transparent, avoids hidden fees associated with other competitors, and clearly defines what you pay for, which means you can easily see what transaction fees will be associated with a bank transfer.

Each transaction is charged a fee based on three factors: the amount you send, the method you pay for the transaction, and the average market exchange rate.

If you send a token amount of money, you will always pay their minimum commission. It is cheaper than fees charged by other services. This nominal amount is $ 2 for a transfer up to $ 400. For anything beyond this, the commission is 0.5% of the amount sent.

Transfer Wise is mainly one of the most popular international money transfer companies that can offer you super low fees and a transparent action. 

Pros:

  • Easy to use 
  • When compared to a bank, TransferWise’s fees and exchange rates will almost always be better.
  • TransferWise offers the mid-market rate on all transfers sent through its network. 
  • A cap of $1,000,000 per transfer is in place, but some sending methods and locations may lower that limit.
  • Multiple payment options. Pay with a debit card, credit card or bank account with ACH or wire transfers. 

Cons:

  • Funds must be sent to the recipient’s bank account; there is no option for cash pickup.
  • You’ll have to provide your SSN and possibly other identification before sending your first transfer through TransferWise.
  • Because TransferWise offers the mid-market rate, it relies on fees to make a profit, so it can be higher.
  1. WorldRemit

WorldRemit’s network isn’t as big as brands like Western Union or any of the above descripted, but better rates and lower fees can often be found with WorldRemit. 

In addition, the WorldRemit app and website tell you in advance what exchange rates and fees you will pay without first registering. This makes it easy to compare with other companies to see if you are getting the best deal.

One of the main disadvantages of WorldRemit is that you cannot pay with cash, but its global network supports receiving cash in many countries around the world.

Other shipping options such as mobile airtime top-up, bill payment, and door-to-door cash delivery complement this service for some shipping destinations. You will also often be able to find promotional codes to get a better deal if you are purchasing an item for the first time.

Transfers via WorldRemit will add both a commission and a markup to the average market margin. Transfer fees for WorldRemit vary, but the standard fee for sending from the US to most countries is $ 3.99. WorldRemit fees and exchange rates may vary based on the following:

  • Location. Fees and exchange rates may differ depending on the country you are shipping to. Even if the two destination countries use the same currency, the exchange rate offered by WorldRemit may differ when sent to each.
  • Number. Although the commission for most transfers is $ 3.99, in some countries the commission will be higher depending on the amount you are sending.
  • Delivery. Sending cash usually has a higher fee, while sending to a bank account is cheaper.

Unlike many competitors, WorldRemit offers the same exchange rate no matter how much you send.

  1. Remitly

And the last option to send money from Canada to US can be Remitly. It is a web-based provider of money transfers that allows you to quickly send money from the U.S. to over 50 countries.

Ramitly is very focused on easy and fast international money transfers for immigrants to the developed world looking to send money home.

They do a good job of keeping costs low, especially when you consider the convenience, speed, and ability of the recipient to receive cash. The reviews we found show that customers are very satisfied.

Remitly’s closest competitors are Western Union and WorldRemit, which we have also reviewed. But that doesn’t make them the best for everyone, for sure many complaints were found while reading the customer reviews.

While you can send both very small and relatively large amounts, the sweet spot for Remitly is when you need money to arrive very quickly and you want options like simple payment and cash withdrawal.

For pickup, they partner with shipping and distribution providers in many countries (banks, cash pickup or delivery services) so that your family can choose multiple ways to receive funds.

With Remitly, you can transfer money from these 16 countries: UK, USA, Australia, Canada, Ireland, Germany, France, Italy, Spain, Austria, Belgium, Finland, Netherlands, Norway, Singapore and Sweden to over 50 countries.

Remitly is also available in up to 100 currencies, which is another advantage for the company. About the exchange rates and fees we’ll talk later in the article. Now let’s fix some really important pros and cons of Remitly.

Pros:

  • Super-fast transfer option.
  • Two plans to send money: express and economy.
  • Easy tracking for both senders and recipients.
  • Various options to receive money, such as bank transfers, pick up points, home delivery, and mobile wallet transfers.
  • Funds your transfers with a credit card, debit card, or bank transfer.
  • Guaranteed delivery.
  • If the delivery is late, the fees will be refunded.
  • Allows people in the US, Canada, Europe, Australia and the UK to send money to over 50 countries around the world, with cash pickup possible at more than 140,000 locations worldwide.

Cons:

  • Banned transfers between 16 sending countries.
  • Fees can be high compared to other money transferring companies.
  • A limit of $2,999 is placed on all new accounts, and you’ll need more ID to increase daily, monthly and 180-day sending limits.
  • The speed and the amount of fees can differ, they depend on the country you send money.

To conclude

As you can see there are tons of options to send money from Canada to US or vice versa. The only thing you have to consider is that the commission fee can vary depending on the amount you send and the exchange rate. 

The higher amount you send the higher will be the fee for the transfer. Anyways all the mentioned above money transferring companies have years of experience in the financial market and proved their safety and reliability. 

Concerning the banks, it is very long to open an account to send money and for recipient it is too long to wait. Let’s agree 5 days is very long to get wait for money. 

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