Understanding Canadian dollar transfers to Canada in global transactions

The Canadian dollar does not get the same attention as the USD or EUR in conversations about international payments. It probably should. Canada is one of the world's top 10 economies and an increasingly active market for remote talent and cross-border trade. For anyone receiving payments from Canadian clients, working for Canadian employers, or moving money between Canada and another country, understanding how CAD works in global transactions is important for setting up a payment process that minimises unnecessary costs.

In this article, we explain how the Canadian dollar works in international transactions and how you can send CAD.

Understanding the Canadian dollar

The Canadian dollar (CAD) is one of the world's major reserve currencies. It consistently ranks among the top six most traded currencies on global foreign exchange markets. Within Canada, CAD moves through systems like the Large Value Transfer System (LVTS) for high-value transfers and the Automated Clearing Settlement System (ACSS) for smaller payments. Once CAD moves across borders, the route it takes, the number of banks involved, and where the currency conversion happens all influence how much arrives and how long it takes.

The Canadian dollar is also closely linked to commodity prices, particularly oil. Canada is one of the world’s largest oil exporters, and significant changes in global oil prices can influence the value of CAD. This is why it is often referred to as a “commodity currency” or “petrocurrency.”

For international contractors or freelancers paid in CAD, this can be relevant when deciding when to convert funds.

Also read: The biggest financial challenges expats face in UK, US and Canada

How CAD moves across borders

When a Canadian employer or client pays an international recipient, the funds move through one of several pathways, depending on the selected payment method.

SWIFT wire transfer

This is one of the most common methods for cross-border CAD payments from Canadian banks. The sending bank issues a SWIFT instruction to the receiving bank through the correspondent banking network. Depending on the destination country, the transfer may pass through one or more intermediary banks, each of which may deduct a handling fee of around CAD $10 to $25.

The receiving bank may then convert CAD to the local currency using its internal exchange rate at the time of processing.

What happens behind the scenes:

• The sending bank issues a payment instruction
• The transfer moves through intermediary banks
• Each intermediary may deduct a fee
• The receiving bank credits the funds

This process can introduce delays and additional costs.

What to expect with SWIFT:

• Processing time: 2–5 business days
• Possible intermediary deductions
• Currency conversion that may include a markup (often around 2% to 4% above the mid-market rate)

Local Canadian payment systems

In Canada, payments are processed through domestic systems such as EFT and Interac. These are faster and lower-cost within the country. However, they are not directly accessible to most recipients outside Canada unless they have Canadian account details.

This limitation is why many international recipients rely on SWIFT transfers.

Modern digital alternatives

Traditional wire transfers can be costly, and local systems are limited to domestic use. Digital payment solutions offer alternatives:

• Fintech platforms and digital wallets: Providers like Wise, Remitly, Payoneer, and PayPal streamline cross-border transfers by using local banking infrastructure or internal matching systems, which can reduce costs compared to traditional wires
• Multi-currency accounts: These allow users to hold, receive, and send funds in multiple currencies (USD, GBP, EUR, CAD), giving more control over when conversion happens
• Payment gateways and APIs: Platforms like Nuvei, Stripe, and Moneris allow businesses to accept payments in multiple currencies, with settlement in CAD
• Payroll platforms: Services like Deel manage contractor payments, including conversion and payouts in local currencies, typically applying a spread that should be reviewed in advance

Also read: How to receive and convert foreign currencies to USDC in Canada

What determines the total cost of a CAD payment

The total cost of an international CAD payment includes several components:

• Sender's bank fee: Typically CAD $15–$40 for outgoing international wires
• Intermediary bank charges: Often CAD $10–$25 per bank involved
• Exchange rate markup: Banks often apply a 2% to 4% margin above the mid-market rate; fintech platforms may offer lower margins depending on the provider
• Receiving bank fee: Some banks charge $5 to $20, depending on the country and institution

Also read: Send Canadian dollars with Grey

Sending Canadian dollars with Grey

Grey now supports sending Canadian dollars (CAD) directly to Canadian bank accounts.

CAD transfers can be processed via:

• Interac e-Transfer: typically delivered within minutes, with a flat fee of CA$3
• Bank transfer: typically completed within 1 business day, with a flat fee of CA$2.50

How to send CAD with Grey

• Log in to your Grey account
• Ensure you have a CAD balance or convert funds using the “Swap funds” feature
• Click “Send” from your dashboard
• Select Canada as the destination and CAD as the currency
• Choose your preferred payout method (Interac or bank transfer)
• Enter the recipient’s details and confirm the transfer

Recipients do not need a Grey account because funds are delivered directly to their Canadian bank account.

Grey is registered with FinCEN in the United States and with FINTRAC in Canada and operates under applicable financial regulations.

Managing CAD payments with Grey

Grey allows you to manage USD, GBP, EUR, and CAD in one platform, making it easier to handle international payments.

You can:

• Hold balances in multiple currencies
• Convert funds when needed at visible rates
• Send money to Canada using local payment methods

Grey also offers virtual cards that can be used for international payments and added to Google Pay or Apple Pay for contactless transactions.

You can sign up on Grey or download the app to get started.

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