Send Money To Canada

Ways to Send Money to Canada

If you are a Canadian living abroad and looking for ways of sending money home, there are several options you can use. However, your choice of provider depends on your preferences and factors such as speed, cost, convenience, exchange rates and the like.

Wire Transfer

The Canadian banking system comprises domestic banks, foreign bank subsidiaries, and branches of foreign banks. In total, the banking network boasts of 6,300 branches and 19,000 ATMs.

Sending to Canada via wire transfer takes anywhere from 3 to 5 days depending on the currency and the amount. Apart from the fees charged by the intermediaries, receiving banks also charge additional fees. This phenomenon makes wire transfer costly and unfavourable in exchange rate translations.

Money Transfer Services

Money Transfer Operators (MTOs) such as Instarem, WorldRemit, TransferWise, MoneyGram, Western Union, TransFast, and Xoom, have proven to be reliable in sending money to Canada.

Transferring money using money transfer operators is very simple. You’ll be required to sign up for an account on the provider’s website or download an app and register an account. Then select the amount of money you want to send, how your loved one should receive it and how to pay for the transfer. 

You can pay for your transfer using a debit or credit card, cash at the sending location, bank transfer or Interac, a Canadian interbank network. Once you’ve topped up your account, you can send through the provider’s website, mobile app or in-person at the store.

Money transfer service providers take a much shorter time and have different sending options. The two main ways you can send remittances to Canada with money transfer services are:

Transfer to Bank Account - Most MTOs take about two days to deliver your money. The process is similar to that of bank-to-bank transfers but varies slightly in that you’ll be transferring from an MTO platform to a bank account. Within 1 to 2 days, your loved ones will receive the money. Charges vary depending on the platform. 

Transfer to Pick Up Location - Providers such as Xoom, a PayPal service, allows you send money to agent locations in Canada. Depending on the proximity of the recipient to a Xoom agent and their preference to receive money this way, you can send money using this method. Xoom has 761 locations in Canada while Western Union has 3,000 agent locations.

Money Transfer services are usually better than banks in terms of fees and speed, if you would like to know more, we've created a simple guide to showcase the difference between money transfer providers and banks.

International Money Orders

Canada is one of the 30 countries that accept and cash international money orders. For you to send money from the United States to Canada using an international money order, you’ll need to visit any United States Postal Service(USPS) branch and purchase a money order. The cost per money order is $3.85 and the maximum value it can carry is $700 equivalent to CAD 999.99.

Money orders are safe and reliable. They are prepaid hence have a guarantee that they won't bounce.

Other methods of sending money you could explore include bank drafts, personal cheques and PayPal. Be careful to look at the fees charged, the length of time the transfer takes and the security of your money. 

What’s Needed to Send Money to Canada

Sending money to Canada is not a complicated process. However, you’ll be required to provide some information to facilitate the transfer. The information requested may vary from one provider to another and the method of sending the money. That said, here is a general list of what may be needed.

• Your government-issued ID. Some providers insist that the document must have a recent photo.
• Your debit card or credit card details if using this method to pay for your transfer
• The amount of money to be sent
• The recipient’s name as it appears on official documents
• The recipient's address and phone number
• The bank account number, the bank and branch name, routing number and BIC code

The provider may require that you indicate the reason for the remittance. This measure helps to track money laundering and financing of illegal activities.

What Are the Ways of Receiving Money in Canada?

Canada is a well-developed economy with several options for receiving money. Once you do the transfer, you should send the reference number to the recipient. This number enables them to track the movement of funds.

The recipient is notified through SMS or email when the money is ready for collection. There are two main ways your loved ones in Canada can receive the money you send them: direct bank deposits and cash collections.

Direct Bank Deposits – If the recipient prefers to have money deposited into their bank account, you can use this method. It is safe and convenient. However, you need to ensure that the sender captures all the details to avoid delays or misdirected transfers.

Cash Collection – You can opt to pick up your cash from an agent near you. This method is convenient when receiving small amounts of money. Call in advance to find out the hours of operation and bring a friend if you can. To avoid unnecessary losses, bank the money as soon as you receive it.

If the sender uses a money order or bank draft, you’ll have to cash it in person at the post office or a partner institution.

What Is Required to Receive Money in Canada?

The following documents are required to enable you to receive money in Canada. Again, the information differs albeit slightly from one provider to another.

• A government-issued ID. The name on the document should tie in with what the sender provided
• The transaction reference number. You can obtain this code from the sender
• Verification of the sender's details and the amount to be received

Canada has a strict financial regulatory system. Depending on the amount and the frequency of receipt, the recipient may be required to provide more information. Bank transfers require no identification unless the amount deposited is suspicious.