Chapter 09 · Currency & payments
ACH vs Wire Transfer cross-border
ACH free via US account, Wire costs $25–$50 + FX. Which to choose for Canadians with/without US account.
Direct answer · 60-second summary
The 60-second version
ACH vs Wire Transfer: ACH (Automated Clearing House) costs $0–$3 USD but only works between US accounts. Wire costs $25–$50 USD + 1.5–2.5% FX markup. For Canadians with US account (RBC Bank USA, BMO Harris), ACH is free and faster.
Acronyms used in this guide
- CAD — Canadian Dollar
- USD — United States Dollar
- ACH — Automated Clearing House
ACH – Definition and costs
ACH (Automated Clearing House): US payment system for transfers between US accounts only. Costs: typically free or $1–$3 USD. Timeline: 1–2 business days.
Limitation: You must have a US bank account (not possible directly from Canadian bank without US presence).
Wire Transfer – Definition and costs
Wire (International Electronic Funds Transfer): SWIFT wire between countries via international banking network. Costs: $25–$50 USD (sender fee) + intermediary fees ($10–$30) + 1.5–2.5% FX markup. Timeline: 1–5 days depending on banks.
Advantage: Works directly from Canadian bank.
Example: transfer $100,000 CAD to US
Scenario A: Wire via RBC Canada
- Sender fee: $45 CAD
- FX markup 2%: 100,000 CAD × 0.02 = $2,000 CAD markup
- Received (net): 100,000 CAD × (0.7200 − 0.0144) = ~$70,720 USD
- Total cost: $2,045 CAD + hidden fees.
Scenario B: ACH via RBC Bank USA
- You have RBC Bank USA account in USD
- Transfer CAD → RBC Bank USA via RBC Royal Bank (free, up to $25,000 CAD/day)
- Once in RBC Bank USA, buy USD via internal ACH: free
- Send USD via ACH to US recipient: free or $1–$3
- Total cost: $0–$3 USD (massive savings).
When to use ACH
- Regular amounts $10,000–$100,000 USD
- Existing US account (RBC Bank USA, BMO Harris, other)
- Flexible timeline (3–5 days)
- Vendor payment or progressive savings
When to use Wire
- Single large amount (real estate purchase, > $250,000 CAD)
- No established US account (urgent)
- Short timeline (< 3 days)
- Recipient cannot receive ACH
Every figure, rate, threshold, and deadline in this guide is drawn from a verifiable primary source listed at the bottom of the page. The article is updated whenever the underlying rules change, with a fresh review date stamped at the top.
Sources and references
Public sources verified as of the last review date (Bank of Canada, FINTRAC, IRS, Wise, Knightsbridge FX, Canadian banks).
Disclaimer
This guide is for educational purpose only. Figures, rates, thresholds, timelines and rules are drawn from public sources at the date shown and may change.
For any concrete decision on currency exchange or cross-border payments, consult a cross-border tax advisor, a tax attorney, or a licensed FX broker.