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Published on 25 August 2025•8 minutes

Send money to United States from Canada: streamline your cross-border business payments

Airwallex Editorial Team

Send money to United States from Canada: streamline your cross-border business payments

Your US suppliers expect payment on time. Your American employees need their salaries without delay. Yet traditional cross-border transfers from Canada to the United States often involve hidden fees, poor exchange rates, and frustrating delays that can strain business relationships and cash flow. With cross-border payments expected to increase by 5% annually until 2027 ¹, Canadian businesses need efficient, transparent solutions for sending money south of the border.

The global payments landscape is evolving rapidly. Current volumes of cross-border payments exceed USD 200 trillion ¹, and the digital payment market is projected to reach $32.07 trillion by 2033 ². For Canadian businesses operating in this environment, finding the right international transfer solution isn't just about convenience – it's about maintaining competitive advantage in an increasingly connected economy.

Understanding the Canada-US payment corridor

The economic relationship between Canada and the United States represents one of the world's most significant trading partnerships. Despite this close connection, businesses still face substantial challenges when transferring funds across the border. Traditional banking systems often involve multiple intermediaries, each adding their own fees and processing times.

Recent data shows that 65% of respondents rank speed as their top priority when choosing a payment method ³. Additionally, 44% of respondents are frustrated by poor exchange rates, while 35% cite high or hidden fees as major pain points ³. These concerns directly impact Canadian businesses sending regular payments to the United States.

The traditional banking infrastructure wasn't designed for today's fast-paced business environment. While the CHIPS network successfully migrated to ISO 20022 in April 2024 and the Fedwire Funds Service is expected to complete its migration in March 2025 ⁴, many businesses still struggle with outdated payment processes that haven't kept pace with modern needs.

The true cost of traditional international transfers

When Canadian businesses send money to the United States through traditional channels, the advertised transfer fee often represents just the tip of the iceberg. Hidden costs can significantly impact your bottom line, especially for companies making frequent cross-border payments.

Exchange rate markups remain one of the most significant hidden costs. While banks advertise "no fee" transfers, they often apply substantial markups to the exchange rate. In the US, credit card fees are unregulated and can reach as high as 3.5% ⁵. Similar markup practices apply to international wire transfers, where the difference between the interbank rate and the offered rate can cost businesses thousands of dollars annually.

Intermediary fees add another layer of expense. When transfers pass through correspondent banks, each institution may deduct its own fee from the transfer amount. Merchants globally paid approximately $138 billion in processing fees in 2022 ⁵, highlighting the substantial cost burden on businesses. These deductions mean recipients often receive less than the intended amount, creating reconciliation headaches and potentially damaging supplier relationships.

Modern solutions for Canada-US money transfers

The financial services landscape has transformed dramatically in recent years. About 96% of Singapore SMEs surveyed have adopted or plan to adopt fintech solutions, with 91% trusting fintechs to manage their financial operations ⁶. This global trend reflects growing confidence in alternative payment solutions that offer transparency, speed, and cost-effectiveness.

Airwallex provides Canadian businesses with a streamlined approach to sending money to the United States. The platform offers high-speed business transfers at low interbank rates, with funds received securely in as little as one business day ⁷. By utilizing a local payment network, Airwallex eliminates many traditional transaction fees and ensures funds are delivered faster and in full ⁷.

The platform's approach addresses the key pain points identified by businesses. With market-leading FX rates on every transaction and zero hidden fees ⁷, companies gain predictability in their international payment costs. This transparency becomes particularly valuable for businesses managing tight margins or forecasting cash flow requirements.

Speed and efficiency in cross-border payments

Time is money in international business. The G20 has endorsed targets requiring 75% of cross-border remittances to arrive within one hour and the remainder within one business day by the end of 2027 ³. This ambitious goal reflects growing recognition that slow payment processing hampers global commerce.

Modern payment infrastructure makes these speed improvements possible. The Automated Clearing House (ACH) announced it will increase the limit on real-time payment transactions to 10 million, a 10-fold increase over previous limits ⁴. These infrastructure improvements benefit businesses using advanced payment platforms that can leverage faster rails.

For Canadian businesses, faster payments translate into tangible benefits. Suppliers receive funds quickly, strengthening business relationships. Employees in the United States get paid on time, improving retention and satisfaction. Cash flow becomes more predictable when you know exactly when payments will arrive. Airwallex enables funds to be received in as little as one business day ⁸, significantly faster than traditional wire transfers that can take 3-5 business days or longer.

Managing foreign exchange risk

Exchange rate volatility between the Canadian dollar and US dollar can significantly impact business profitability. Foreign currency credit in dollars grew by 5% year-on-year at the end of the first quarter of 2025 ⁹, indicating continued strong demand for USD transactions despite currency fluctuations.

Businesses need strategies to manage this risk effectively. Timing transfers strategically can help capture favorable rates, but this requires flexibility that traditional banking systems often lack. Some companies maintain USD accounts to hold funds until rates improve, though this ties up working capital.

Airwallex offers market-leading FX rates on transactions of all sizes ¹⁰, providing consistency whether you're sending $1,000 or $100,000. This approach eliminates the tiered pricing structures common with traditional banks, where smaller businesses often receive worse rates than larger corporations.

Compliance and security considerations

Sending money internationally requires careful attention to regulatory compliance. Both Canada and the United States have strict anti-money laundering (AML) and know-your-customer (KYC) requirements that businesses must navigate. Cybersecurity and fraud risks present serious concerns for the digital payment market ², making security a top priority for any international transfer solution.

Proper documentation is essential for smooth transfers. Businesses typically need to provide invoice details, contracts, or other supporting documents to justify commercial payments. Having these documents ready before initiating transfers can prevent delays and additional scrutiny.

Airwallex maintains robust security measures and holds more than 60 licenses globally ⁶, ensuring compliance with local regulations in multiple jurisdictions. The platform's infrastructure is designed to meet stringent security standards while maintaining the speed and efficiency businesses require.

Integration with business operations

Modern businesses need payment solutions that integrate seamlessly with their existing workflows. Technological integration remains a major challenge for companies, especially small and medium-sized firms, when integrating digital payment systems with legacy infrastructure ². The right platform should simplify, not complicate, your payment processes.

Automation capabilities can transform how businesses handle international payments. Instead of manually processing each transfer, companies can set up recurring payments for regular suppliers or payroll. Batch processing allows multiple payments to be initiated simultaneously, saving time and reducing errors.

Airwallex supports transfers to 150+ countries and regions in 60+ currencies ¹¹, providing a single platform for all international payment needs. This consolidation eliminates the need to manage multiple banking relationships or payment providers, streamlining operations and improving visibility over global cash flow.

Comparing payment methods for US transfers

Canadian businesses have several options for sending money to the United States, each with distinct advantages and limitations. Understanding these differences helps companies choose the most appropriate method for their specific needs.

Traditional wire transfers through Canadian banks remain common but often involve high fees and poor exchange rates. Processing typically takes 3-5 business days, and the total cost can be unpredictable due to intermediary fees. Banks may also have limited customer service hours, making it difficult to resolve issues quickly.

Online money transfer services have emerged as popular alternatives. These platforms often offer better exchange rates than banks and provide greater transparency around fees. However, transfer limits may restrict their usefulness for larger business payments, and some services focus primarily on personal rather than business transfers.

Airwallex positions itself specifically for business needs, offering high-speed transfers without the expense and hassle of the traditional banking system ¹². The platform's local payment network eliminates many intermediary fees, ensuring recipients receive the full intended amount.

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The future of Canada-US payments

The payments landscape continues to evolve rapidly. Major retailers are expected to adopt account-to-account payment methods in 2025, underpinned by real-time payments ⁴. Walmart announced in 2024 that they will start offering account-to-account payments ⁴, signaling a shift away from traditional payment methods.

Digital wallets are forecast to process $3.1 trillion in 2027, which will be 4 times more than credit cards ⁵. This dramatic shift in payment preferences will likely influence how businesses approach international transfers, with expectations for instant, transparent, and cost-effective solutions becoming the norm.

Open banking initiatives promise to further transform cross-border payments. Open banking can provide clear, real-time data on fees, exchange rates, and transaction status ³, reducing hidden costs and boosting consumer confidence. These developments will benefit businesses seeking greater control and visibility over their international payments.

Practical tips for optimizing your US transfers

Maximizing value from international transfers requires strategic planning and the right tools. Here are practical steps Canadian businesses can take to optimize their US payment processes:

Consolidate payments when possible to reduce per-transaction fees. Instead of sending multiple small payments throughout the month, consider batching them into fewer, larger transfers. This approach works particularly well for supplier payments that don't require immediate settlement.

Monitor exchange rates and plan transfers during favorable periods when cash flow permits. While perfect timing is impossible, avoiding transfers during periods of extreme volatility can help protect margins. Set up rate alerts to notify you when the CAD/USD exchange rate reaches target levels.

Maintain clear documentation for all international transfers. This includes invoices, contracts, and correspondence related to the payment. Good record-keeping not only ensures compliance but also speeds up the transfer process by having required information readily available.

Consider the total cost of transfers, not just the advertised fee. Factor in exchange rate markups, intermediary fees, and the cost of delayed payments when evaluating transfer options. What appears to be the cheapest option may actually be the most expensive when all costs are considered.

Building stronger US business relationships

Reliable, transparent payment processes strengthen business relationships across borders. When US partners receive payments quickly and in full, trust grows. This reliability becomes a competitive advantage, potentially leading to better payment terms or preferred vendor status.

Communication around payments should be clear and proactive. Notify recipients when payments are initiated and provide tracking information when available. If delays occur, communicate promptly to manage expectations and maintain trust.

Airwallex enables businesses to pay global suppliers and employees without the traditional banking system's expense and hassle ¹³. This efficiency allows companies to focus on building relationships rather than managing payment logistics.

Conclusion

Sending money from Canada to the United States doesn't have to be complicated, expensive, or slow. As the global payments landscape evolves, with revenues expected to reach $3.2 trillion by 2027 ⁵, businesses that adopt modern payment solutions gain significant advantages.

The key lies in choosing a platform that addresses the specific needs of business transfers: competitive exchange rates, transparent pricing, fast processing, and reliable delivery. Airwallex offers these capabilities through its global payment infrastructure, enabling Canadian businesses to transfer funds to the United States efficiently and cost-effectively.

By leveraging modern financial technology, Canadian businesses can transform international payments from a source of frustration into a competitive advantage. Whether paying suppliers, employees, or partners in the United States, the right payment solution ensures your money arrives quickly, securely, and in full – strengthening relationships and supporting growth on both sides of the border.

FAQ

What are the typical costs for sending money from Canada to the United States?

Traditional cross-border transfers often involve hidden fees, poor exchange rates, and additional charges that can significantly impact your bottom line. Modern payment solutions like Airwallex offer transparent fee structures with competitive exchange rates, helping businesses avoid unexpected costs. The exact fees depend on transfer amount, payment method, and speed requirements, but businesses can typically save 2-4% compared to traditional banks.

How long does it take to send money from Canada to the US using Airwallex?

Airwallex international transfers from Canada to the United States typically process within 1-2 business days, significantly faster than traditional bank transfers which can take 3-5 business days. The exact timing depends on the payment method used and compliance requirements. Same-day transfers may be available for certain transaction types and amounts.

What compliance requirements apply when sending money from Canada to the US?

Cross-border transfers from Canada to the United States must comply with both Canadian and US financial regulations, including anti-money laundering (AML) and know-your-customer (KYC) requirements. Businesses need to provide proper documentation for transactions, especially larger amounts. Airwallex handles much of the compliance burden automatically, but businesses should maintain proper records and ensure they meet reporting thresholds.

Can I use Airwallex to send money to the US from my Canadian business account?

Yes, Airwallex offers dedicated business account services for Canadian companies looking to send money to the United States. Their platform provides multi-currency accounts, competitive exchange rates, and streamlined international transfer capabilities specifically designed for business needs. You can access these services through their Canadian business account transfer options at airwallex.com/ca/business-account/transfers/send-money-to-us.

What are the advantages of using modern payment solutions over traditional banks?

Modern payment platforms like Airwallex offer several advantages over traditional banks: transparent fee structures without hidden charges, better exchange rates, faster processing times, and integrated business tools. Airwallex has shown significant growth with transaction volumes climbing 159% in fiscal year 2024, demonstrating their reliability and scalability for growing businesses.

How can businesses optimize their cross-border payment strategies?

Businesses can optimize cross-border payments by choosing platforms with transparent pricing, using multi-currency accounts to reduce conversion fees, timing transfers strategically based on exchange rates, and leveraging automated payment solutions. Cross-border payments are expected to increase by 5% annually until 2027, making it crucial for businesses to establish efficient payment processes early.

Citations

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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.

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