USD to CAD

Who sends and receives money between US and Canadian dollars

You’ll find a steady stream of payments flowing both ways across the US-Canada border. Maybe you’re a Michigan family funding a cottage in Ontario. Or you run a small store in Vermont, ordering stock from Quebec. Some freelancers in Calgary bill American clients in US dollars. On the other hand, snowbirds from Canada move funds south during the winter. American students pay Canadian universities from home. Trade ties are strong: the US is Canada’s main economic partner, so invoices and bills travel in both directions every day.

With so much activity, even a tiny difference in the exchange rate makes a difference fast. Using the current mid-market rate of 1.3971, 1000 US dollars turns into 1,397.12 CAD. Send 5000 and you’re looking at 6,985.58 CAD. All of that can add up in your annual budget, depending on who handles your transfer and how favorable their rate is.

What shapes the Canadian dollar and its exchange rate

Monetary policy comes from the Bank of Canada, and since 1970 the Canadian dollar has been allowed to float. Oil and other resource exports can boost the currency, when energy prices tick upward, the Canadian dollar tends to pick up strength, though the connection isn’t as tight as it used to be. Locals often call the unit the loonie, after the bird featured on the one-dollar coin released in the late eighties.

But there’s more deciding the rate than just oil. The difference between Bank of Canada and US Federal Reserve interest rates matters. So does US economic news, since a huge portion of Canada’s economy depends on American buyers. Trade rules and the USMCA deal also play a part. A tariff announcement can move the currency pair within a day.

Over the past year, the exchange rate shifted by -0.30%, fluctuating between a low of 1.3525 and reaching as high as 1.4261. The rate here shows how many Canadian dollars you’ll get for each US dollar, which is the usual way to quote this pair.

How money lands in a Canadian account

To deposit funds in Canada, you’ll need details split into three numbers: the bank’s institution number, the transit (branch) number, and the account number itself. Interac e-Transfer is standard within Canada but doesn’t work for cross-border payments. So incoming funds from the US mostly arrive as direct deposits, either through your transfer provider’s Canadian account or as a traditional wire from abroad.

If you receive US dollars, check whether your Canadian bank offers a US dollar-denominated account, and if you already have one, you can often hold dollars until you choose the time to convert. That puts the timing in your hands, instead of leaving it to the bank. Many freelancers benefit from local receiving account details to get paid more flexibly. If someone pays by US cheque, be aware Canadian banks may hold onto the funds for a while and might charge a fee. A direct bank transfer sidesteps those delays and extra costs.

Comparing costs: fees, markups and card payments

A wire transfer from your bank may look like a bargain on paper thanks to a low fee, but look closer, the real cost is often in the rate. Exchange rate markups from banks usually outweigh the flat fee you see up front. If your transfer passes through one or more intermediary banks, there could be additional charges along the way, as outlined in intermediary bank fees.

Right now, for a 1000 US dollar transfer, the lowest-cost provider in our comparison is Wise, which pays out 1,390.20 CAD. With Wise, you’d take home 1,390.20 CAD after a total cost of 0.50%, including the exchange markup. For Xe, the cost comes to 0.90% on the same amount. You’ll find more details about how these numbers are calculated on our How we compare page.

Paying by card in Canada? Choose to be charged in Canadian dollars on the terminal. Or the alternative: let the merchant charge you in US dollars, which typically gives you a worse rate because their bank does the conversion.

When timing and transfer size matter

Because Canadian and US business hours overlap across much of the continent, transfers started on a weekday morning often land the same day. Holidays, though, matter, a Canadian bank may close for Thanksgiving in October or Canada Day on July 1, and the US marks different dates, like American Thanksgiving or July 4.

Moving major sums, such as for a property deal or a hefty down payment? There’s more at stake, since the mid-market rate may move between when you agree a price and when you actually pay. To lock in a rate ahead of time, some choose a forward contract that fixes the conversion. Both US and Canadian banks examine large money transfers, and sometimes they’re required to report them. Keep paperwork like the purchase agreement or an invoice nearby, as you’ll see explained here: why banks report large transfers.

If you’re sending Canadian dollars south, see CAD → USD. More about the Canadian dollar itself is at Canadian Dollar, and for another comparison you can check USD → AUD.