Sending money across borders shouldn't feel like navigating a minefield of hidden fees and surprise charges. Yet for Canadian businesses managing international payments, the true cost of transfers often remains unclear until the invoice arrives. With wire transfer fees ranging from $30 to $80 per payment at major Canadian banks ¹, plus exchange rate markups and intermediary charges, calculating the real expense of international transfers becomes a complex equation that impacts your bottom line.
The hidden costs of international transfers for Canadian businesses
Traditional financial institutions layer multiple fees onto international transfers, creating a cost structure that extends far beyond the advertised transfer fee. At CIBC, outgoing wire payments cost $30 for transfers under $10,000, $50 for amounts between $10,000.01 and $50,000, and $80 for transfers exceeding $50,000 ¹. These base fees represent just the starting point.
Beyond the initial transfer fee, businesses face additional charges that quickly compound. Wire payment investigation fees for recalls, traces, or amendments add another $35 per request ¹. If you need to cancel or change a wire transfer at RBC, expect to pay between $25 and $50 CAD, with no guarantee the cancellation will succeed once submitted ².
The exchange rate markup represents perhaps the most significant hidden cost. While financial institutions advertise competitive rates, they typically include a markup above the mid-market rate. RBC's exchange rates include an undisclosed markup that varies based on market conditions ². For businesses processing multiple international transfers monthly, these markups can translate to thousands of dollars in additional costs.
Receiving international payments also incurs fees. CIBC charges $15 for incoming wire payments in Canadian and US currency, deducted directly from the incoming amount ¹. For other currencies, the same $15 CDN fee applies, converted using CIBC's exchange rate and deducted from the payment.
Breaking down transfer fees: Major Canadian banks compared
Understanding how different financial institutions structure their international transfer fees helps businesses make informed decisions. Let's examine the fee structures across Canada's major providers.
Wire transfer fee structures
RBC's Business Wire via Online Banking charges $15 CAD for transfers under $2,500 and $20 CAD for transfers between $2,500 and $10,000, with a daily limit of $10,000 CAD ². For larger international money transfers, RBC's IMT service starts at $45 CAD when transferring from a Canadian dollar account.
TD Canada Trust recently announced significant fee increases affecting account transfers. Starting July 1, 2025, TD doubled its registered account transfer fee from $75 to $150 ³. While this specific increase targets registered accounts like TFSAs and RRSPs, it signals a broader trend of rising transfer costs across Canadian financial institutions.
Processing times and delivery speeds
Transfer speed varies significantly between providers and destinations. RBC business account wire transfers to Canada or the US typically arrive on the same day, while transfers to other destinations usually take 1 to 2 business days ². However, these timeframes assume no complications or intermediary delays.
In contrast, modern payment solutions leverage local payment networks to accelerate delivery. Airwallex enables funds to be received in as little as one business day, with the full amount guaranteed on delivery ⁴. This speed advantage comes from using local payment infrastructure rather than traditional SWIFT networks.
Currency conversion: The biggest hidden expense
Exchange rate markups often represent the largest component of international transfer costs, yet they remain the least transparent. The AUD/CAD exchange rate on July 11, 2025, was 1 AUD = 0.90124 CAD according to market data ⁵. However, businesses rarely receive this mid-market rate when transferring through traditional channels.
Consider a Canadian business sending $100,000 AUD to a supplier. At the mid-market rate of 0.90124, this would cost $90,124 CAD ⁵. With a typical 2.5% markup applied by traditional providers, the actual cost rises to approximately $92,377 CAD – an additional $2,253 purely from exchange rate differences.
For businesses managing regular international payments, these conversion costs compound quickly. The AUD/CAD rate fluctuated significantly in 2025, reaching a high of 0.9125 CAD per AUD on March 17 and a low of 0.8492 CAD per AUD on April 8 ⁵. Such volatility makes transparent, real-time exchange rates essential for accurate cost planning.
SWIFT network fees and intermediary charges
The SWIFT network, while reliable for international transfers, introduces additional layers of cost through intermediary fees. When payments route through correspondent banks, each institution may deduct fees from the transfer amount. These deductions mean recipients often receive less than the sent amount, creating reconciliation challenges for businesses.
Airwallex addresses this issue by utilizing local payment networks to eliminate transaction fees and deliver funds faster and in full ⁴. However, when SWIFT transfers are necessary, Airwallex may charge additional fees to cover network costs, maintaining transparency about when and why these charges apply ⁴.
Payment rails – the underlying infrastructure connecting financial institutions – significantly impact both cost and speed. Companies with local accounts can send and receive money within the same country more quickly and affordably ⁶. This local presence eliminates many intermediary fees associated with cross-border SWIFT transfers.
Real cost comparison: Traditional banks vs modern alternatives
Let's calculate the true cost of a $50,000 CAD transfer to the United States through different providers:
Traditional bank transfer
Base wire fee (CIBC): $50¹
Exchange rate markup (estimated 2.5%): $1,250
Potential intermediary fees: $25-50
Total estimated cost: $1,325-$1,350
Modern payment solution
Transparent fee structure with no hidden markups
Market-leading FX rates on every transaction⁴
Local payment network delivery eliminating intermediary fees
Total cost significantly reduced through transparent pricing
The difference becomes even more pronounced for businesses processing multiple transfers monthly. A company sending 10 international payments of $50,000 each could save thousands annually by choosing providers with transparent pricing structures.
Building your transfer cost calculator
Creating an accurate transfer cost calculator requires accounting for multiple variables:
Essential cost components
Base transfer fee
: Varies by amount and provider
Exchange rate markup
: Difference between mid-market and offered rate
Intermediary fees
: SWIFT network and correspondent bank charges
Investigation fees
: Costs for traces, amendments, or cancellations
Receiving fees
: Charges applied to incoming international payments
Calculation methodology
To calculate your true transfer cost:
Identify the base transfer fee from your provider
Compare the offered exchange rate against the mid-market rate
Calculate the markup percentage and apply to your transfer amount
Add estimated intermediary fees (typically $25-50 for SWIFT transfers)
Include any additional service charges
For recurring transfers, multiply monthly costs by 12 to understand annual impact. Factor in time costs as well – delays in payment processing can affect supplier relationships and cash flow management.
Ready to grow globally?
Reducing international transfer costs for your business
Several strategies can help Canadian businesses minimize international transfer expenses:
Batch processing and timing
Consolidating multiple smaller payments into larger transfers can reduce per-transaction fees. However, this must be balanced against cash flow requirements and supplier payment terms.
Local payment networks
Utilizing providers with local payment infrastructure eliminates many cross-border fees. Airwallex's local network enables faster delivery while eliminating transaction fees ⁴.
Multi-currency accounts
Holding funds in multiple currencies reduces conversion frequency. Airwallex offers multi-currency accounts that allow businesses to receive and hold funds in various currencies ⁶, timing conversions for favorable rates.
Transparent pricing models
Choosing providers with clear, upfront pricing eliminates surprise costs. The Airwallex Business Account offers market-leading FX rates with zero hidden fees ⁴.
Technology trends reshaping international payments
The payments landscape continues evolving rapidly. Global payments revenues grew 11% in 2022 to reach $2.2 trillion, with forecasts projecting $3.2 trillion by 2027 ⁷. This growth drives innovation in transfer solutions.
Digital wallets are forecast to process $3.1 trillion in 2027, four times more than credit cards ⁷. For international transfers, this shift toward digital payment methods creates opportunities for more efficient, cost-effective solutions.
The global digital payment market is expected to reach $32.07 trillion by 2033, growing at a compound annual rate of 13.5% from 2024 ⁸. This expansion reflects increasing demand for faster, more transparent payment solutions.
Case study: RYSE's transformation with modern payment infrastructure
RYSE transformed complex cross-border finances into streamlined, cost-saving operations by adopting modern payment infrastructure ⁹. The company's experience demonstrates how businesses can significantly reduce transfer costs while improving operational efficiency.
By leveraging transparent pricing and local payment networks, RYSE eliminated many hidden fees associated with traditional international transfers. The ability to manage multiple currencies and time conversions strategically further reduced costs.
Regulatory changes affecting transfer costs
Open banking regulations promise to reshape the payments landscape. This regulatory framework would allow Canadians to safely share their financial data with third-party providers ³, potentially increasing competition and driving down transfer costs.
The Fedwire Funds Service migration to ISO 20022 in March 2025 represents another significant change ¹⁰. This standardization may streamline international transfers, though implementation costs could temporarily affect pricing.
Making informed decisions about international transfers
Calculating true international transfer costs requires looking beyond advertised fees. Exchange rate markups, intermediary charges, and hidden fees can triple the apparent cost of sending money abroad. For Canadian businesses managing regular international payments, these expenses significantly impact profitability.
Modern payment solutions offer transparent alternatives to traditional transfer methods. By utilizing local payment networks and providing market-leading exchange rates, providers like Airwallex help businesses reduce costs while improving payment speed and reliability. The company supports transfers to over 150 countries and regions in more than 60 currencies ⁴, providing global reach without traditional complexity.
As international commerce continues expanding, understanding and optimizing transfer costs becomes increasingly critical. Whether you're paying suppliers, managing subsidiary finances, or receiving payments from global customers, choosing the right payment infrastructure can save thousands annually while strengthening business relationships through reliable, transparent transactions.
The shift toward digital payment solutions and open banking frameworks promises continued innovation in international transfers. Businesses that adapt to these changes and adopt modern payment infrastructure position themselves for success in an increasingly connected global economy. Start calculating your true transfer costs today and discover how much your business could save with transparent, efficient international payment solutions.
FAQ
What are the typical international transfer fees for Canadian businesses?
Canadian businesses typically pay $30 to $80 per international wire transfer at major banks like CIBC. However, the true cost includes hidden fees such as exchange rate markups (usually 2-4% above mid-market rates), correspondent bank charges, and SWIFT network fees. These additional costs can significantly increase the total expense of international transfers.
How do exchange rate markups affect international transfer costs?
Exchange rate markups are often the largest hidden cost in international transfers. Traditional banks typically add a 2-4% markup to the mid-market exchange rate, meaning you receive less foreign currency than the actual market rate would suggest. For a $10,000 CAD transfer, a 3% markup could cost an additional $300 in hidden fees.
What is a telegraphic transfer and how does it compare to other transfer methods?
A telegraphic transfer (TT) is an electronic method of transferring funds internationally through the SWIFT network. While secure and widely accepted, TTs often involve higher fees and slower processing times compared to modern alternatives. Digital payment platforms can offer faster transfers with more transparent pricing structures for businesses.
How can Canadian businesses reduce international transfer costs?
Businesses can reduce costs by comparing transfer providers, using multi-currency business accounts, timing transfers strategically, and consolidating smaller payments. Alternative providers often offer better exchange rates and lower fees than traditional banks. Some platforms also provide forward contracts to lock in favorable exchange rates for future transfers.
Do I need a separate business bank account for international transfers?
While not always mandatory, having a dedicated business bank account for international transfers offers several advantages including better record-keeping, potential volume discounts, and access to specialized business transfer services. Many providers offer multi-currency business accounts that can hold funds in different currencies, reducing conversion costs.
What should I consider when comparing business bank accounts for international transfers?
When comparing business bank accounts, evaluate transfer fees, exchange rate markups, processing times, supported currencies, and minimum transfer amounts. Consider whether the account offers multi-currency capabilities, online transfer management, and integration with accounting software. Also assess the provider's customer support and regulatory compliance in your target markets.
Citations
View this article in another region:Canada - Français
Airwallex Editorial Team
Airwallex’s Editorial Team is a global collective of business finance and fintech writers based in Australia, Asia, North America, and Europe. With deep expertise spanning finance, technology, payments, startups, and SMEs, the team collaborates closely with experts, including the Airwallex Product team and industry leaders to produce this content.
Share
- The hidden costs of international transfers for Canadian businesses
- Breaking down transfer fees: Major Canadian banks compared
- Currency conversion: The biggest hidden expense
- SWIFT network fees and intermediary charges
- Real cost comparison: Traditional banks vs modern alternatives
- Building your transfer cost calculator
- Reducing international transfer costs for your business
- Technology trends reshaping international payments
- Case study: RYSE's transformation with modern payment infrastructure
- Regulatory changes affecting transfer costs
- Making informed decisions about international transfers
- FAQ
- Citations
