How to receive USD payments in Canada
If you need to receive money in USD in Canada - as payments from others, a salary, or for freelance work, for example, you could have the funds deposited to a bank account or use an alternative provider like Wise or OFX.
Both banks and non-bank services have their own pros and cons, and offer quite different feature and fee structures. This guide walks through some basics to help you decide the best way to receive USD payments in Canada for your specific situation.
Quick summary: Receiving USD transfers in Canada
| Questions | Answers |
|---|---|
| Can you get paid in USD in Canada? | Yes. Have USD paid to a local bank USD account or use an alternative provider like Wise or OFX which accept payments in USD, CAD and other major currencies. |
| Do I have to pay tax on money received from the US to Canada? | Whether or not you need to pay tax on money received from the US to Canada will depend on many factors, including the value and reason for the payment. Get professional advice if you’re unsure of your tax obligations. |
| How do I accept USD payments in Canada? | You can receive payments from others, or as a business get payments from PSPs and marketplace sites, in USD, in Canada. Either use a local bank USD account or consider an alternative provider like Wise or OFX. |
How to receive USD payments in Canada: Step-by-step
To receive a payment in USD in Canada, you’ll need USD account details, or SWIFT details which can be used to receive a USD wire transfer.
These account details aren’t usually available with a CAD account - instead, if a payment comes into your bank account in USD, it must be converted to CAD to be deposited, which might mean additional fees or unfavorable exchange rates.
This is where opening a specific USD or multi-currency account can help. Here’s a quick review of how to open an multi-currency or foreign currency account in Canada to get you started:
1. Choose a provider, and then download their app or head to their desktop site
Once you’ve picked a bank or specialist provider which meets your needs, you can most easily open your account online or through their app - just have your ID to hand for verification and follow the prompts.
2. Select the option to open an account and enter your personal and contact information
Online account opening is usually very straightforward and just requires some basic personal information, contact details and a few key things like your tax ID for legal purposes.
3. Upload an image of your ID and address documents for verification
All banks and non-bank providers will have a verification process - this keeps your account and money safe and is required by law. The exact documents you’re asked for can vary a lot but usually a government issued ID and a proof of address, like a utility bill, is enough for personal customers.
4. If you have a multi-currency account you may need to open your USD account in the provider’s app by confirming you want to receive a payment
The process here can depend on whether you have a USD only account or a multi-currency account which supports incoming payments from many currencies. If you have a multi-currency account you’ll usually need to activate the USD balance function to see your USD account information - thi is done in the provider’s app.
5. Your account details can now be used to receive incoming payments in USD
Now you’ll be able to get your USD account information - usually an account number and routing number - to give to anyone sending you money in USD.
What documents are needed to receive money from the US to Canada?
Usually banks, financial service providers and non-bank money transfer services like Wise or OFX are legally required to check that funds, and particularly high value payments, have not been obtained illegally. That can mean that you or the sender are asked to demonstrate the source of the funds before it can be sent.
This isn’t as complicated as it might sound in most cases. If you’ve received a payment for a specific reason - a payout from an investment or will, or from the sale of a house for example - you’ll be asked to explain and prove where the money came from. Here are some common scenarios and the types of documents you might need:
Receiving USD from salary: You might be asked for recent pay slips, the salary section of your contract or a letter from your employer, as well as the last 3 months of bank statements to show the money being deposited if you’re moving salary savings from the US to Canada
Receiving USD after the sale of a property: You may need to provide the final sales contract signed by both parties, a letter from a solicitor, bank statements showing you received the money and proof the property has changed hands
Receiving USD from US investments: Prepare to be asked for things like investment certificates, contract notes, or statements, and bank statements showing you received the money
4 ways for receiving USD payments in Canada: A comparison
There are many ways to receive money from the US in Canada with digital platforms, and with local and US banks. We’ll compare these providers in the table below based on USD core features - and there’s more on each of these options coming right up afterwards.
| Providers | Services provided | Fees for receiving money in USD | USD exchange rates | Currencies I receive in and hold |
|---|---|---|---|---|
| Wise | Multi-currency accounts with debit card, for personal and business customers | No fee for ACH 6.11 USD fee for wire | Live mid-market exchange rate | 40+ |
| OFX | Multi-currency accounts for business customers and online sellers | No fee | Exchange rate will include markup | 7 |
| TD Bank | USD account services for cross border purposes (offered through TD Bank US) | No fee for ACH 15 USD fee for wire | Exchange rate will include markup | USD only |
| RBC | USD account services for cross border purposes | No fee for ACH 15 USD fee for wire | Exchange rate will include markup | USD only |
Canadian banks may offer USD banking services which are intended for cross border travellers and shoppers. These accounts hold USD only, although you might get preferential rates if you need to send money to or from your connected CAD account with the same bank.
Non-bank alternative providers like Wise or OFX offer multi-currency accounts which can prove more flexible, with a larger selection of supported currencies and easy ways to send and receive money globally. Here’s a quick summary:
Wise: Receive and hold USD alongside 40+ other currencies, spend and withdraw with a linked debit card, with mid-market exchange rates and no ongoing fees
OFX: For businesses and online sellers who are being paid by customers, PSPs and marketplaces in USD and 6 other major currencies - no ongoing fees, no debit card
TD Bank: Open your USD checking account from TD Bank’s US arm, using Canadian ID and address details
RBC: Low monthly fee USD account which can be used to receive, hold and send money easily
Wise multi currency account
💡 Great for: Ways to receive USD and hold your balance in US dollars alongside 40+ other currencies, with mid-market exchange rates and no ongoing fees
Wise account is available for personal and business customers in Canada, and can be used to receive USD payments using local account details or SWIFT details for incoming USD wires.
It’s free to receive an incoming USD ACH payment, but there’s a fixed fee for incoming USD wires, of 6.11 USD per transaction.
Wise accounts can hold and exchange 40+ currencies, with linked debit cards and ways to send payments to others in 160+ countries.
When you need to convert from CAD to USD or any other currency for that matter, you get the mid-market exchange rate with low fees from 0.33%. Some transaction fees can apply, depending on how you use your account - but there’s no maintenance fee or minimum balance to worry about.
Best features:
Hold and exchange 40+ currencies and receive USD with local or SWIFT account details
No incoming payment fee for USD ACH payments, and low charges for receiving wires
Mid-market currency exchange rates
Fees to receive USD payments: Receive USD ACH payments for free, receiving USD wire payments have a 6.11 USD fee per transaction
USD exchange rates: Mid-market exchange rate
| Wise pros | Wise cons |
|---|---|
✅ Available for individuals and businesses ✅ Excellent range of supported currencies including USD and CAD ✅ Receive USD ACH payments for free ✅ Mid-market currency exchange | ❌ 6.11 USD fee to receive a wire payment ❌ Some transaction and currency conversion fees apply |
How to receive USD payments with Wise
Download the Wise app, or open the Wise desktop site
Register with your email address, and follow the prompts to enter your personal details
Upload your ID documents and proof of address for verification
Select Currency Balance and tap ‘USD’ to open your USD account
Your account details can now be used to receive incoming payments in USD
Learn more: How to open a Wise USD account & How to receive money internationally with Wise
OFX account
💡 Great for: Business customers and online sellers who are paid by customers, PSPs and marketplaces in USD and 6 other major currencies
The OFX Global Currency Account is a good way for business customers and online sellers to receive payments in USD in Canada.
Accounts support 7 currencies for receiving, holding and exchange, and can be used for direct customer transfers or through marketplaces like Amazon or PSPs like Stripe. Accounts do not offer linked debit cards - but they’re helpful for incoming USD payments, with no fee to pay for incoming deposits.
Exchange rates may include a markup, when you convert in your account or to withdraw.
Best features:
Receive, hold and exchange 7 major currencies
No OFX fee to receive a payment - some costs may apply when you convert between currencies
Get currency risk management services from the same provider
Fees to receive USD: No OFX fee
OFX USD to CAD exchange rates: Exchange rates include a markup.
| OFX pros | OFX cons |
|---|---|
✅ Large, well known and trusted business account provider ✅ No fee to open or maintain an account, or for incoming transfers ✅ Accounts support 7 major currencies including USD and CAD ✅ 24/7 phone line if you prefer to talk to someone about your finances | ❌ Not available for personal customers ❌ Exchange rates include a markup |
How to receive USD payments with OFX
Open the OFX website or app and click to sign up
Enter your personal and contact information
A team member will call to confirm your application and how to get verified
Once your account is verified, you can access local account details to receive USD payments
TD Bank Complete Checking Account account
💡 Great for: USD checking account from TD Bank’s US arm, which is available to customers in Canada
TD Bank has branches in both Canada and the US, making it a convenient option to get paid in USD. You can open a couple of different types of USD accounts, depending on how frequently you will need to transact - we've selected the TD Bank Complete Checking Account account as our example here. This account is offered by TD Bank in the US, but can be opened with a Canadian address and ID document. You’ll get USD account details to receive payments by local transfer method and wire, and might also be able to receive payments through methods like Zelle.
You’ll pay 15 USD a month for this account if you don’t meet the eligibility to have the fee waived. While incoming local payments may be free, wires come with a 15 USD fee.
Best features:
USD account, based in the US, from a bank with local branches in Canada
Waive your monthly fee in 3 different ways including maintaining a balance in the account
No minimum opening deposit required
Fees to receive USD: Incoming local payments may be free, wires come with a 15 USD fee
USD exchange rates: Exchange rates include a markup
| TD Bank pros | TD Bank cons |
|---|---|
✅ Well known and licensed bank in the US and Canada ✅Receive payments in USD conveniently ✅ Open a full US checking account with Canadian ID and address documents ✅ Ways to waive your monthly fee fairly easily | ❌ Monthly fee of 15 USD ❌ Incoming wire fee of 15 USD |
How to receive USD payments with TD Bank
Apply for your TD Bank USD account online if you qualify and have the right documents to hand. In some cases you’ll need to visit a branch to open your account. Once you have an active account you’ll be issued USD details to give to anyone sending you money.
RBC USD Personal Chequing account
💡 Great for: Low monthly fee USD account which can be used to receive, hold and send money easily
RBC USD Personal Chequing Accounts have a monthly fee but you’ll get some free transactions for this, and can receive payments in USD easily. Accounts are also eligible for overdraft protection although fees may apply here. This account product is marketed for frequent US travellers, although RBC also offers some higher interest savings account products in USD.
There’s a 3 USD fee every month for this account, and while incoming local payments may be free, wires come with a 15 USD fee.
Best features:
Receive, hold and withdraw USD as you need it
Preferential exchange rates available
No minimum balance
Fees to receive USD: Incoming local payments may be free, wires come with a 15 USD fee
USD exchange rates: Exchange rates include a markup
| RBC pros | RBC cons |
|---|---|
✅ Hold and withdraw USD easily ✅ Some monthly debits included in part of monthly fee ✅ Overdraft protections available ✅ No minimum balance required | ❌ 3 USD/month fee ❌ Incoming wire fee of 15 USD |
How to receive USD payments with RBC
Most customers can open their RBC account online to start receiving payments in USD:
Open the RBC website or app and click to sign up
Enter your personal and contact information following the prompts
Upload the required documents to get verified
Once your account is verified, you can access local account details to receive USD payments
Related: Best banks for international wire transfers
What are the fees and taxes applicable for receiving money from the US?
The fees which apply to receive your USD payment can vary a lot depending on the provider or bank you pick and how the transfer is set up. If you’re using a bank, costs can include:
SWIFT fees - these are paid to banks which help move the money to your account and will be deducted from the final amount deposited
A receive fee - your own bank could take a fee when the money arrives, which may vary depending on whether the transfer is an ACH, wire or a different payment type
SWIFT fees could be 30 USD - 50 USD depending on the transfer details, and the sender might not know in advance what the costs will be in the end. That means you might get less than they expect. The receive fee should be made clear by your bank - this is 15 USD for wire transfers for the banks we profiled earlier.
Non-bank providers like Wise and OFX offer local account details which means your sender can use a local payment method like an ACH to send your money. This may be offered by a bank - but not always. Local payment methods like ACH are cheap for the sender, cut out SWIFT fees, and providers like Wise and OFX don't charge for these transfers as they arrive in your account.
What is the limit for receiving payments in USD?
The person sending you money may have a limit on the value of payment they can send depending on the provider they pick. This limit may be increased by talking with the manager if the sender is using a bank to send the payment.
Aside from limits imposed on the sender, there may be a limit to the amount you can receive to your account - but these limits are often set very high to allow most customers to transact fairly freely:
Wise receiving limits: Usually 1,000,000 USD for personal accounts, and 3,000,000 USD for business accounts.
OFX receiving limits: Generally, OFX has no limits on the value of transfers - double check before you receive a high value payment, as rules can vary depending on the specific situation and payment
TD Bank and RBC receiving limits: Banks may not have receiving limits for incoming payments - but account terms and conditions vary so you're advised to check with your local branch before a payment arrives
Important things to know before receiving money from the US
If you receive a payment in USD to a CAD account it will be automatically switched to Canadian dollars with the bank's exchange rate. Compare different providers and banks to open a USD denominated account or a multi-currency account, to avoid unnecessary currency conversion
Check the bank or local account details you give to the sender to make sure they have everything they need to process the transfer safely such as an account and routing number
Ask the sender how they’ll structure the payment, and get them to check if any SWIFT fees will be deducted - if they are, you might be better off with an account from a specialist like Wise or OFX which provides account details to receive local USD transfers
Gather the documents needed to prove where the money has originated from if you’re sending or receiving a high value transfer
Is it necessary to declare money received in USD?
Whether or not you need to report payments you receive from the US will depend on the value and the reason for the payment. If you’re receiving income the chances are that this will need to be declared just like any other salary or income from Canadian sources. Gifts may be treated differently but this will depend a lot on the value - get individual tax advice to make sure you're not falling foul of the law accidentally.
Conclusion: Best ways to receive USD payments in Canada
Customers in Canada can receive USD payments to a local bank USD account or use an alternative provider like Wise or OFX which accept payments in USD, CAD and other major currencies. Bank USD accounts are available from major local providers and aimed at cross border travellers and investors. Non-bank alternatives like Wise and OFX are often cheaper and more flexible.
Get paid in USD in Canada to a specific USD account or a multi-currency account which offers USD balance services
Fees on USD payments can vary a lot and may include SWIFT fees and costs from your own bank
Incoming wire payments may have a fee, but providers like Wise and OFX offer local details to get paid by ACH
Remember to check the tax status of any payment you’re receiving to avoid getting into legal difficulties or failing to pay tax owed on income