Receiving money from abroad in Canada: Watch out for these fees

It’s relatively straightforward to receive money from abroad in Canada, but be mindful of transaction fees and exchange rate markups on foreign currency transfers.

Let’s explore how to receive international transfers, including key details about fees, cash pickup, and the best methods to receive money from abroad.

We’ll also look at Wise – your global transfer alternative. Send and receive your money at the fair mid-market exchange rate, with transfer fees starting at just 0.48%^*.

How to receive international transfers in Canada

There are a few different ways to receive international wire transfers in Canada. Let’s take a closer look.

Cash collection

If you don’t have a bank account, you can have someone send cash for pickup in Canada. Here are some popular cash collection services.

Western Union

With over 500,000 Western Union® agent locations worldwide, you can receive funds from more than 200 countries.¹

You’ll need a few details to receive your Western Union international transfer:

• To Receive Money Form (TRMF)
• Tracking number
• Sender’s full name and address
• Cash amount
• Valid ID²

The amount of cash you can receive through Western Union depends on where your sender lives. The sender can verify their sending limits on the Western Union website.³

You won’t pay a fee to receive funds via Western Union,² but your sender may incur a small transaction fee.⁴

You may have to pay for currency conversion into Canadian dollars, and Western Union earns a profit from these exchanges.⁴

Ria Money Transfer

You can also access cash collection through Ria Money Transfer®. Your sender can transfer money for cash pickup at one of Ria’s agent locations in Canada.

To pick up your cash, you’ll need:

• a government-issued photo ID
• your transfer PIN or Order Number⁵

It’s easy to track and receive your Ria cash order, but your sender may need to pay a transfer fee. This can differ depending on when and how you want to receive your payment.⁶

You may also need to pay for currency conversion. Ria Money Transfer uses the mid-market rate as a reference, but you’ll need to log into your account to see the actual rate used for your transaction.⁷

Electronic Fund Transfers or EFTs

You can also receive your international money transfer directly into your bank account. You may be able to receive an electronic transfer via your bank’s online or mobile banking system.

For example, TD® Global Transfer lets you receive funds internationally through your online account,⁸ but be aware that TD Bank’s exchange rate markups and transaction fees may apply.⁸

You can also receive EFTs via a digital provider like Wise. It’s easy to send and receive your money in multiple currencies – and many money transfer platforms use convenient apps for on-the-go payments.

You can even access the mid-market exchange rate for international transfers. This is the fair, standard rate for currency conversion you might see online.

If the provider needs to convert your payment into CAD, you won’t lose out on expensive currency conversion charges or hidden fees.

How to receive international payments with Wise

There are a few different ways to receive money internationally with Wise. If you want to receive money from another Wise account, simply follow these steps:

Step 1. Your sender needs to enter your email address or Wisetag

Step 2. Wise converts your payment at the standard mid-market exchange rate.

Step 3. You’ll receive a notification that you’ve received funds in your account

It’s free to transfer between Wise accounts in the same currency – and you can receive money in over 20 currencies, with local account details available in 9 currencies.

If you want to receive a Swift transfer with Wise, you’ll need to provide your sender with some key details:

• Name
• Account number
• Swift/BIC code
• Bank name
• Bank address

Money transfer apps such as PayPal

You can also receive money via a peer-to-peer transfer app like PayPal®. It’s free to receive money through PayPal, but you can only hold money in Canadian dollars.

This means you’ll need to convert incoming international payments into local currency. PayPal adds a 3% to 4% markup on foreign currency conversions, which can significantly increase the cost of international transfers.⁹

Let’s take a look at how to receive money internationally via PayPal.

Step 1. Your sender will need to enter your email address or mobile number

Step 2. You’ll receive a notification that you have money in your account – if you don’t have a PayPal account, you’ll need to open one

Step 3. You can transfer your money into a linked bank account or keep it in your PayPal balance¹⁰

Are international payments received in Canada taxable?

If you’re receiving money internationally, you’ll need to know whether your payment is taxable in Canada or not.

You may need to report international transfers of 10,000 CAD or over to the Financial Transactions and Reports Analysis Center of Canada® or FINTRAC.¹¹

You may also need to report 2 or more EFTs of less than 10,000 CAD each made within 24 hours when they total 10,000 CAD or more.¹²

Your bank typically reports such payments, and you may need to declare the funds when filing your taxes.

If you receive international funds from selling an asset, you may owe capital gains tax on the proceeds. In most cases, you won’t owe taxes on gift money.¹¹

How long does it take to receive international payments in Canada?

How long it takes to receive your international bank or wire transfer depends on your bank or money transfer provider.

For example, it typically takes 1 to 2 business days for Western Union cash pickup,¹³ whereas it can take anywhere from 15 minutes to 4 business days to receive cash through Ria Money Transfer.⁶

TD Bank global transfers tend to take 1 to 5 business days.⁸ You should receive your international SWIFT transfer through Wise within four to five business days.

These times may differ. Speak to your bank for more information about when you’ll receive your foreign payment.

In Canada, you can receive international transfers through your bank or a money transfer provider, but it’s crucial to understand the fees and exchange rates involved.

If your provider converts your payment into CAD, you may pay an exchange rate markup – and some banks will add additional fees or charges to your transfer.

To receive money in over 20 currencies – all at the fair mid-market exchange rate – check out Wise.

Sources:

1. 1. Western Union
   3. Western Union - Help section
   5. Western Union - Receive money
   7. Western Union - Transfer fees
   9. Ria - How to receive money
   11. Ria - Sending money to Canada
   13. Ria - USD - EUR exchange rate
   15. TD Bank - TD Global transfer
   17. PayPal - Fees
   19. PayPal - How to receive money through PayPal
   21. Loans Canada - Tax rules on international transfers to Canada
   23. Canadian government site - EFT reporting
   25. Western Union - Transfer duration
   Sources verified on 27 December 2024