Money is transferred across borders for various reasons that might include
– Handling educational expenses
– Supporting the family that lives abroad
– Financial transactions
– Overseas Trips
While there are many ways of transferring money from the USA to CANADA, each method has pros and cons. Let’s examine how to transfer funds to Canada from the United States..
1. Bank Transfers
As its name suggests, a bank transfer involves a transfer from one bank to the other. This is commonly done for regular transactions and payments. To initiate the bank transfer, you will need the following details:
1. Bank Account number of the recipient (the person you intend to send the amount to)
2. Sort Code, a six-digit number identifying the recipient’s bank, is very important for transfers to bank accounts in CANADA.
3. Bank’s SWIFT/BIC code.
A bank transfer is usually completed within seven working days, and the fees charged for the transaction vary from one bank to the other. It is often the most inexpensive way of transferring money.
2. SERVICES FOR ONLINE MONEY TRANSFER
A convenient and affordable option to transfer money from the USA to Canada is using one of the many available internet platforms and apps. To avail of the online money transfer service, you will need the following:
1. An account with the service provider
2. Identity documents for verification
3. Recipients’ details
An online money transfer service is often one of the fastest and preferred ways of transferring money, especially in a short duration, as the transaction is completed within a maximum of one to three business days. If the funds must be sent to the recipient quickly, there may be better options than a bank transfer. With XE and Currencies Direct, money transfers from the US to Canada are dependable and quick.
3. REMITTANCE SERVICES
Expert remittance firms make it easier to send money from the United States to Canada. They offer many services, such as Wire Transfers, Bank Transfers, Cash Pick-ups, and Mobile Wallet Transfers. Such companies charge fees that keep changing based on exchange rates, so it is important to choose the right company. Western Union and Remitly are examples of such service providers.
Usually, these services are expensive to transfer funds as they charge quite heavily for their service.
A detailed walkthrough on transferring funds from the United States of America to Canada:
1. Choose the transfer method based on how fast you want the amount transferred. Not just the speed at which the amount is to be remitted, but also consider the exchange rate offered and the convenience provided- whether you are required to visit the bank/service provider in person or this can be done online from a comfortable place and how secure the medium of transfer is?
2. Always pick a service provider only after comparing what other providers who offer similar services are willing to offer. Please register an account with the service provider by providing them with the necessary documentation.
3. Provide the recipient’s information accurately to avoid an incorrect or unintended transfer/transaction as requested by the service provider.
4. Make a thorough calculation of the cost and fees for the transfer, which might include upfront charges, exchange rates, and bank fees.
5. Initiate the transfer and note the transaction reference number so you can track the transaction later.
6. Inform the recipient about the transfer and tell them when to expect the amount and how much they will likely receive.
7. Make a note of the customer care number of the service provider so that you may contact them for any unreasonable delay in the completion of the transaction.
Pros and Cons:-
Each method of transferring money has pros and cons depending on various factors, like how soon the money needs to be transferred to the recipient and the prevailing exchange rate at the time of transfer.
For instance, service providers like Wise, Western Union, Remitly, Currency Fair, and OFX provide almost Instant transfers completed anywhere between 0 to 3 days. Banks rely on the SWIFT system for transactions, which involves intermediary approvals. In contrast, online transfer service providers rely on their networks, which are quite large and work almost instantaneously.
Most service providers, including banks, allow transaction tracking through the transaction reference number given while initiating the transaction.
Since these services allow almost instantaneous to very fast transfer of funds, they also charge quite high amounts as transaction charges and other fees make them expensive.
Not Very Reliable:
Due to the anonymity of online transfer services, it is sometimes very risky, and dispute resolution can be tricky if you choose a service provider without a good consumer grievance redressal mechanism.
It isn’t easy to pinpoint a particular method of transferring funds from The United States of America to Canada as it depends on various factors like the necessity/urgency of funds at the recipient’s side, the exchange rates involved, the charges for completing the transfer and the mode of transfer, it can be safely concluded that if you are looking for a fast transfer and need a reliable service provider, opt for either Online Money Transfer Services or Remittance Service Providers.
A tip that one can keep in mind while choosing such a service provider is to watch out if the provider is registered with the FCA (Financial Conduct Authority)/PRA (Prudential Regulation Authority)/FSCS (Financial Services Compensation Scheme), which operate with the common objective of ensuring that the customer’s money is safe.
1. What information is needed to move from the United States to Canada?
1. Recipient’s Full Name
2. Recipient’s Full Address and Contact Details
3. Name of the Bank
4. Six Digit Sort Code
5. Account Number
6. Swift/BIC Code
2. How can I ensure the best exchange rate while sending money from the United States of America to Canada?
Look for service providers with the best exchange rate and a low mark-up. A mark-up is an extra fee set up by banks and transfer service providers and can usually go up to 3%, which increases the cost of the actual transfer transaction. A good example is Wise, which has a USD/CAD exchange rate of 1.3215.
3. Can mobile apps transfer money from the USA to Canada?
Yes. Service providers like XE and Currencies Direct allow payments to be made through mobile apps.