Archive for the ‘Money Transfer’ Category

Decide How to Send Money to Canada Before You Visit

Tuesday, February 9th, 2010

If you are planning a visit to Canada, you will need funds. If you don’t want to carry cash with you over the border only to pay high exchange fees, it’s understandable. Instead, you should learn a few ways to send money to Canada prior to your trip.

Sure, you could take cash in U.S. dollars with you to exchange at locales like Vancouver International Airport upon arrival, but expect some fees for this. Additionally, trying to find a location that exchanges money can be difficult depending on where you are, and most people want to relax during their vacation. Considering other options is a good idea.

You could send a bank draft, also known as a cashier’s check, from the U.S. You could then cash it at a Canadian bank or credit union like Bank of Canada, but it typically takes two to three weeks to get the money. If you have no other way of paying for items, this could be very inconvenient.

Another option is to send an international money transfer using an outside service. It usually costs about $10, and takes about two weeks to go through. If you use HSBC, it costs $30 to send money from the one in the U.S. to the one in Canada, and $45 to send it to a completely different bank in Canada. However, this method takes only three to five days, which is not bad.

If you already know where you will be staying, you could send a prepaid debit card to that location so it’s ready when you arrive. You could also simply send it to your current address to take along with you. The next step would be to add the money you need either online or by phone for a small fee of $5 USD. You would have the ability to use it to shop in Canada, or withdraw money in Canadian dollars from various ATMs. Clearly, this could be a valuable tool since you would have access to your money right away with minimal fees.

The exchange rate is currently favorable to Americans, but only slightly. $1 USD is equal to 1.09 Canadian dollars, but remember that the taxes in Canada are much higher than in the U.S., which may cancel out the favorable exchange rate. Most provinces in Canada charge about 13% for sales tax, which adds up quickly. Keep this in mind when budgeting.

The methods to send money to Canada vary, and you should choose depending on when you need the money. Another thing to keep in mind is the fees you will encounter for each method. Going to Canada will likely be no fun if you spend all your money on fees right when you arrive, so plan ahead.

For more information visit sending money to Canada or visit the home page for information on sending money almost anywhere in the world.

Money Transfer FAQ:

Question: A question about transferring American money to Canadian money?
If I go out to Canada with 1,000 dollars, how much would that transfer into Canadian money?

Answer: The rate changes on a daily basis. At present, a Canadian dollar is worth about 96 cents US. So you can do the math. Or you can google up ‘money conversion’ and plug in the amount you want to convert and it will give you the up to the minute exchange rate and the total amount of the exchange.

Question: How do I transfer money from my visa into my bank account?
I’m 30 dollars short on rent and don’t get paid til Friday. I have a check that is going out later today and don’t want it to bounce. How do I transfer money from my visa into my cibc account online?

Answer: Call the credit card company and have them wire it to your bank. This is going to cost you plenty!

Question: What’s the best site and method to make money transfers between gambling sites and my account/me in Canada?
I recently registered for MoneyBookers and they charged me $10 to move $150 to my bank account. They should change their name to MoneyCrookers.

Answer: Try Neteller. I don’t remember the exact fee, but it was like 4-5$ which is better. All those payment processing sites have high fees. Neteller has another thing, their exchange rates are worst in history. So if you will be withdrawing to a bank account with different currency from your neteller account then don’t use it.

Question: Cheapest way to send money from Canada to UK?
My Aunt in Canada has some cash to send to me for my late Father’s funeral donation. What’s the ‘best’ way to do this, ie the lowest cost? Simply send me a CAN$ cheque and I cash it at my UK bank? Or electronic transfer? Or PayPal?

Answer: I suggest PayPal.

Question: Moneybookers safe to use?
I have heard a lot of bad things about money bookers and I’m curious to see if I should use it or not. I live in Canada and I play a really fun online game and I finally decided it’s time to buy stuff from their item mall. I only have a debt card so I’d be transferring funds from my bank account but I need to know if it’s safe to do that sort of thing with out losing my money. I have heard accounts have been cancelled for no reason right after they make the account and put money in them. Also is it easy to transfer money because I’m only 17 so I’m not used to doing things like that. What’s the price for making purchases online? For example with paypal it’s like a dollar something.

Answer: I can only answer from my experience as a Moneybookers customer. Moneybookers is a good alternative to PayPal because it verifies members before they can deposit or collect funds. This greatly reduces the chance of fraud. To sign up for a Moneybookers account you will need to provide copies of ID showing your name, address, and age.

NOTE that you must be over 18 years old to use their service. Do not attempt to open an account using false or misleading info as that is grounds for your account being cancelled.

The fee for online purchases is 1% but it’s capped at € 0.50 so it’s usually very reasonable. You can fund your Moneybookers account from any Canadian bank account provided it’s in your name (once you’re 18).

Question: Can you do a money wire transfer from the UK to Canada?

Answer: Yes, it is the only way to transfer money between countries (International Money Order excepted). Speak to a bank.

Question: Money Transfer from Germany to Canada?
I have a friend in Germany who is going to come to Canada to live with me but I need him to transfer me his first and last months rent. What is the best way to go about this. His bank with charge 40 euro fee, and will take up to 10 pays.

Answer: There is the option of money gram. In the UK its available from post offices and internationally it generally is banks who offer the service. They charge a fee depending on how much you want to send but it is an electronic transaction so it is received almost instantly.

Question: What’s the best way to transfer a 403(b) retirement money into Canada?
I have 403(b) retirement accounts (held by Fidelity Investments) through the university that employs me here in Seattle. I will be moving to Vancouver soon to work for UBC. I want to know what my alternatives are to just leaving my 403(b) States-side. Is there a retirement vehicle in Canada that I can transfer my money into without incurring a lot of penalty/taxes? I tried to call Fidelity but those manning the phones don’t know the answer to this question.

Answer: You cannot roll the 403(b) money to a Canadian account. Any disbursement will be counted as a distribution and you would receive a 1099-R. The full amount would be taxable income that year on your US tax return *and* you would be subject to a 10% penalty if you are younger than 59.5 years of age.

Transfer Money to Canada Using Your Preferred Method When You Move Or Visit

Monday, January 18th, 2010

Whether you are moving to Canada or taking a long vacation, it is recommended that you open a bank account if you plan to stay for more than three months. Unlike some countries that depend largely on cash transactions, most Canadians use their bank daily. You can get direct deposit into your account once you get a job, pay bills online, and use your debit card at ATMs. In other words, Canadian banks work a lot like banks in the United States.

If you choose to open an account, you will likely find that it is easy to transfer money to Canada from your current account to your new one. Some countries allow you to open an account before you arrive, but Canadian banks require both government-issue ID, such as a driver’s license, and proof of address. This means you will have to wait until you move to get an account. You will probably also need a reference letter from either your employer or your bank in the United States.

You might choose to open an account a bank that also exists in the United States, such as HSBC or ING. You could also switch to one of the larger banks in Canada, such as TD Canada Trust, Bank of Nova Scotia, Royal Bank of Canada, or Bank of Montreal, to name a few. Keep in mind that the currency of Canada is the Canadian dollar, and $1 USD is equal to about 1.09073 Canadian dollars. Also, be aware that many banks charge a monthly fee for an account unless you are a student. The fee is typically anywhere from 2 to 10 Canadian dollars per month.

If you do not want to wait until you arrive to open an account and transfer money to Canada from your U.S. account, you have other options. One of the cheaper solutions is to obtain a prepaid debit card. You can take one with you into Canada and then add funds to it from your U.S. account to hold you over until you can open a new account. The fee to add money to the card is about $5, and you can add as much as you want at one time for that amount. You can either use the card at stores that accept debit cards, or electronic banking machines. These are called ATMs in the United States, but they are referred to as automatic banking machines, or ABMs, in Canada. They are widespread, typically found at banks and gas stations.

You should choose the best method for you before you arrive. If you like to use cash as much as possible, then exchanging your American dollars for Canadian dollars might be a good idea for you. If you can wait until you arrive and get settled in to start spending money, you may opt to just open a bank account and transfer money to Canada from your account in the United States. If you enjoy using a card and want money the instant you arrive, a prepaid debit card might be best for you.

For more information visit sending money to Canada or visit the home page for information on sending money almost anywhere in the world.

Money Transfer FAQ:

Question: What is the reliable way to transfer money to canada?
I am in search of a reliable , cheaper and faster way for transfer of money to canada.

Answer: I would suggest Western Union. I know you can transfer money all over the country and Canada and maybe South America/Mexico. A lot of people use it and depending on how much money you’re transferring, the fees aren’t too bad. Just make sure there’s a Western Union location on both sides of the transfer. Also, the transfer is almost instant.

Question: Can I instantly transfer cash from bank account to paypal without the wait?
I have a bank account with RBC (royal bank canada) and I want to transfer money from it to my paypal. It says a 6-8 days wait. I have a credit card linked but I need to transfer from my bank. Is there any way to Instantly get the cash into my paypal account with my bank account? No eCheques thats not instant.

Answer: If you physically transfer the money, it can take 6-8 days. If you have a credit card attached to the account, even though you pay from the bank account, Paypal will give the payee/seller the money immediately with no delays. They figure if your bank account is NSF, they will just bill the credit card.

Question: Cheapest way to send money internationally?
Looking for a site like PayPal that will transfer money to other individuals without charging a ton of extra fees. I want to send money from the US to Canada, and the US to Australia.

Answer: My family members and I send money to our family every month with ATMCASH. They have reloadable ATMCASH cards which makes it easy to continuously send them the money they need. It’s cheap, quick, and really easy for us and our family back home.

Question: What is the max. TAX-FREE wire transfer amount in Canada?
My aunt from Taiwan is going to wire some money to lend to my mom in Canada. The amount will be around or slightly exceed $10,000 CAD. We’re concerned that this may exceed some sort of limit and will become taxable. I’d appreciate any info.

Answer: The gift will not be taxable for income tax purposes. However, if the amount of the transfer exceeds $10,000, a report will have to be filed with the Canada Border Services Agency.

Question: Wire transfer lead time from Ontario to USA?
I am waiting on funds of about $110k to transfer from Canada to USA for a business transaction. I assume it is not a same day transaction like a USA-to-USA wire. Does anyone have experience on how long this transfer will take?

I have heard 3-5 business days — is this true?

Answer: I’ve wired money in several currencies all over the world. My experience is mixed. 3-5 days is norm. On 5th business day, I’d start to worry. Don’t count weekends or holidays in timeline.

Stay on top of transfer and check with both parties every day. Ask for documentation proving transfer sent out. If you’re the one sending, get your confirmation documentation and ask for recipients confirmation. Ask CDN bank who they will be using as transfer agent, if one is involved. Also contact recipient bank directly to try and confirm receipt.

Question: When transferring money internationally what is the SWIFTBIC number required?
I am getting money transferred from the UK to Canada and the bank in the UK is asking for the SWIFTBIC number. Does this number appear at the bottom of my cheques. Is it the bank number?

Answer: The SWIFT code does not appear on your checks. You have to ask the bank for this code.

Question: Tax problems from getting money transferred to your account?
In Canada, if I have money transferred regularly to my account, would I have to pay income taxes for it? I mean, does the government track things like that? What if it’s not my income, and somebody else’s money that I’m just holding for them?

Answer: Be aware that transfers of money can be tracked, and are required to be in certain circumstances by the FINTRAC laws. I hope the friend is not using you in a money laundering sort of scheme.

From a tax standpoint you could certainly owe taxes on the interest earned, since the account is in your name.

Question: How long does a swift wire transfer take from canada to south africa?
And what route does the money take? I have been waiting almost three days and I have that funny feeling that my cash is floating around somewhere when I could be spending it!

Answer: Unlike its name, SWIFT is anything but quick. Your bank should tell you how long it’d take before you wire the money. However, if you have sent it already, your best bet is to wait. Some banks, for a charge, trace where in the system your money is. I personally think its an unethical thing for them to do, but with little/no profits to show these days, they (banks) are resorting to all sorts of practices to make money off of customers.

How to Transfer Money to Canada

Monday, October 26th, 2009

Every year, almost 40% of Canadian residents send money to other countries all over the globe. A sizable portion of this money goes to family members in Haiti and the Philippines. But did you know that there are also plenty of people who reside in other countries who transfer money to Canada, as well?

It’s not something you hear about much. To be honest, a great many people assume that since Canada is a fairly wealthy, developed nation, its residents have little need of remittance.

Did you know that you can send money to Canada without the recipient having a bank account, and without paying the high fees associated with wire services and other “kiosk”-based money services?

Sending money via offline wire services can cost close to ten percent of the money sent if you want to transfer money to Canada that same day–and it won’t cost much less if you opt to have it arrive the next day.

This is more important than it used to be, with the exchange rate being what it is. Certainly many Canadians are proud that their dollar’s value now runs neck-and-neck (and they no longer have to bear snide, “Canada, where everything’s 30% off!” jokes from U.S. tourists).

But this also means that if a friend or relative chooses to transfer money to Canada, it’s just not going to be worth as much as it used to. This heightens the impact of the high percentage fees charged by non-bank wire services.

Money orders cost less and are preferred by many people when time is not so much of an issue. However, there is always the question of whether the money will make it safely there. Postal and parcel services are certainly more reliable in North America than in most places around the globe, but the urban legend of the letter than never reaches its destination, exists for a reason.

There are also ways to send the money online as well. And if you want to transfer a large amount of money to Canada to someone who rarely receives large amounts via online transfer, the company may temporarily freeze the account to check for fraud.

Wire transfers from banks that offer them usually cost $35-$45. Although some may balk at the fee, this can be cheaper than wire transfer services if the amount is several hundred (or more).

Pre-loaded debit cards that can be charged via phone or internet connection are becoming more popular. There is at least one service that will deliver the card via the ever-dependable FedEx service. The recipient need only visit one of Canada’s many ATMs to withdraw their cash.

There are many different ways to transfer money to Canada, and not every one of them will meet the needs of every situation. With knowledge of the benefits and disadvantages of each method, you can pick the solution that most closely fits your needs.

For more information visit sending money to Canada or visit the home page for information on sending money almost anywhere in the world.

Money Transfer to Canada FAQ:

Question: Best & cheapest way to transfer money from UK to Canada?
I need to transfer 700 Canadian dollars from my Lloyds TSB account to my landlord in Montreal, Canada. Is it best to do a wire transfer, Western Union money order, paypal, or another method? I want to pay as little fees as I can.

Answer: Can you not just use an email cheque to your landlord? Or email the money in the UK to yourself and deposit it into your Canadian bank account if you have one?

From speaking to people from the UK it appears your bank fees are much higher for services than they are in Canada.

Check with your bank in Canada and they can tell you, you should transfer some funds to Canada anyhow.

Question: How long does it take to process money sent through bank transfer from Canada to Japan?

Answer: Usually takes up to 5 to 7 business days, but for your safety go check with your bank.

Question: Fastest/Cheapest way to transfer money from China to Canada?
I’m going to be going to China for 3 years and I want to be able to send money home to my family. Is Western Union going to be the best bet or is there an alternative method from China?

Answer: Open a bank account and a paypal account. You can pull funds from your bank account and put into paypal account. Have your family open a paypal account and you can “send payments” to them. I don’t know if paypal just lets transfers go through but you can always act like you are paying them for auction purchases or some type of goods. But, you do have to deal with the currency exchange so they might charge for that… not sure.

Western Union is way expensive. If it’s not money they need right away and you are just sending it… just write a check and mail it to them on a regular basis.

Question: How do I transfer money from my account in Canada?
I am in Canada and have an account with Royal Bank and need to transfer some cash to a UK bank account. How do I do it?

Answer: To get the best exchange rate (you will obviously be exchanging currency as the exchange is from CND to GBP) you should use a foreign exchange specialist.

You will also pay no fees, no commission and they can handle the transfer process. Traditional banks charge all manner of fees, and the exchange rate is poor.

Question: Tax Consequences of Transfering Money into Canada?
I plan to transfer $5000 from the US into Canada and have my money converted into Canadian Dollars. Will the US federal government tax me for my transfer? Will Canada tax me for my money transfer?

Answer: No. Merely transferring funds to another account has no tax consequences. If any interest is earned then that will be taxable in both the US and Canada in most cases. If you are a US citizen or resident you will get a credit on your US tax return for any Canadian income taxes paid on the interest.

Question: I don’t have a US account. I want to transfer money from Canada to US. what would be the fastest/cheapest way?
I am going there on a job visa. I can’t open an account online (no SSN yet). I would open an account once I get there and would need the money almost instantaneously, talking of about 10K.

Answer: Citizens Bank International will allow you to open an account without a social. I don’t know if you can get access to one.

Question: Transferring money from Canada to the US or vice versa?
Got a Canadian friend and we need to do some business, only about $100 worth. What’s the best way for me to send $100 to him in Canada, or for Him to send me $100 here in the US? Would like to avoid any pesky fees. Is it possible?

Answer: Mail a money order in the currency of that location. If it’s going to Canada, mail Canadian funds, it it’s going to USA mail it in US funds. Mail is your best bet, as banks are going to charge you anywhere from $25-$50 to wire the funds.

Question: Does anybody know how to send concealed cash to Canada? (not money transfer).
Does anybody know how I would send cash in an envelope to Canada? We’ll just say for example like 20 or 30 dollars or something. How many stamps will I need? Do they even allow you to do that?

Answer: You should never send cash. You should purchase a money-order and send it. Take your letter in to the post office and they will tell you the correct postage based on weight and the address you are sending it to.

Make a Money Transfer to Canada Using One of Three Methods

Friday, October 23rd, 2009

Whether you are originally from Canada and have relatives still in the country or just have friends vacationing there, you could have occasion to make a money transfer to Canada at some point. If you have never done so, researching all your options is a good idea. Choose the method that is least expensive and easiest for both you and your recipient. Just remember that the exchange rate from U.S. dollars to Canadian dollars is 1.15, so when you send a dollar, your relative will actually receive $1.15, which is convenient for them.

One of the most popular ways to make a money transfer to Canada is a wire transfer through your bank. This will only work either if you and your recipient have the same bank, or your U.S. bank has a relationship with a Canadian bank that allows transfers. Banks like Capital One, Citibank, JP Morgan Chase Bank, and HSBC are just some of the institutions that exist in both countries. Some banks in the U.S. charge lower fees when your transfer recipient takes money out of a particular bank. For example, Bank of America encourages the use of Canada’s Scotiabank when dealing with money in another country. You can send money from one bank to a different bank, but be prepared to pay for the convenience. Using HSBC as an example, you will pay $30 to transfer $100 from an HSBC bank in the U.S. to one in Canada. The fee increases to $45 for a transfer to a different bank in Canada that does not bear HSBC’s name.

Another way to make a money transfer to Canada is to use a company as an agent. In this situation, you would locate an agent, pay a fee, and provide the name and location where the recipient would pick up the money in Canada. The fee is typically a percentage of the money you are sending. Your relative would then need to supply a password to show that the money is for them, and would not have to pay a fee. This is usually best for one-time transactions, and nearly every large province in Canada has locations where your relative or friend can pick up the money, including grocery stores, check cashers, travel agencies, airports, and more.

If you are helping support relatives in Canada, you will probably need to send money regularly. The most cost-effective way to do so is to use a prepaid debit card, which can be obtained from several companies. In this situation, you would buy a debit card from the selected company, send it to your relative in Canada, and then call them with the PIN for the card. You would then add money to the card, either online or by phone. There is a fee when you send money, and a smaller fee when your relative uses the card. The fee for a money transfer to Canada is typically $5 to $8, and transaction fees are usually less than a dollar each, with slightly larger fees to take out cash.

You should choose the method of transferring money that makes sense for your situation. Sending money via wire transfer or agent is great for a one-time transfer, but can get costly over time. You only pay once for a debit card, and then pay small fees each time you add money, so this is often an advantage for those who don’t want to deal with agents or larger fees. Consider what is most convenient for both you and your relative when you a select the method of money transfer to Canada.

For more information visit sending money to Canada or visit the home page for information on sending money almost anywhere in the world.

Money Transfer FAQ:

Question: Is the money I transfer to Canada from abroad taxable?
Lets say I want to buy a house in Canada but I do not have enough money and asked my relatives to transfer/send me $55,000 through the bank from Asia or Europe. Do I have to declare that as an income in my tax return? Is that something taxable?

Answer: To my knowledge there should be no tax as this is simply cash being transferred, it’s not income and Canada has no gift tax.

If it were cash from a pension or foreign investment that was sending you money than tax would be withheld but if you just wire money from a bank no tax will be withheld.

You will likely get asked some questions at the bank as to where the money came from as anything over 10,000 has to be reported to FINTRAC.

Question: Need a quick uncomplicated way to transfer money from Philippines to Canada?
Other than western union that needs a tracking number, what’s the best way to transfer money from Philippines to Canada?

Answer: Your bank in the Philippians should be able to do a wire transfer to your bank in Canada, as all they need is a swift number (which all major banks have). You will have your funds within 24-48 hrs.

Question: Money transfer Canada > USA?
I have a checking account in the US, and I will have customers in Canada. I was wondering how are working payments from those countries? Is money transfer CA>US the same than CA>CA, or is it at least a day-to-day transaction? Or is it considered as an international transaction. What about checks? If I receive a CA check, will my US bank be able to cash it? Is it longer? Is it expensive?

In other words, do I need to open a CA account, or can I work with my US account ?

Answer: If you are an independent contractor, you can always set your payment terms in a such a way to demand payment is USD. Because Canada does so much business w/the US, most individuals and companies have 2 accounts, a US denominated account and a Canadian denominated account. As far as wiring the funds to your US account, it should take no more than a few days to complete.

Question: How long it takes to do a money transfer from Canada to Finland?
My father living in Montreal, transferred me some money to my bank account in Finland last Thursday. How long it’ll take to come here, in my bank account?

Answer: 48 hours seems to be the standard “estimated delivery time” for wire transfers, yet they almost always takes much, much longer. Expect it to arrive within a week from when it was sent, if you’re lucky. Next time you should have him send a cheque via overnight snail mail, it would cost much less money and arrive more quickly.

Question: What’s the best least expensive way to transfer money from Canada to America?
In getting paid by a Canadian for web work I did, I’m incurring huge money transfer fees by my bank. If I try to use a wire transfer service there still are fees. Any tips as the the least expensive method?

Answer: Look into using PayPal. Free to become a member. There are transfer fees but it’s not much, and works worldwide.

Question: How can I transfer money from Canada to Dubai? Am coming on visit visa, want to have it in dollar not Dirham?
I want to transfer money from Canada to Dubai. Because I want to go there and start a business. But in the beginning I will come on visit visa. So can any body tell me how can I do this? Any American or Canadian Bank in Dubai?

Answer: In Dubai there is the Bank of America and the Royal Bank of Canada. Visitors being on a visit visa in Dubai can open a savings account. To open a current account you need to hold a valid residence visa.

Banks will also be willing to offer accounts to those newcomers whose residence permits are under processing provided that they provide a letter of introduction or verification from a bank with which the applicant has an account in his or her home country.

Question: Best way to transfer money from Canada to Asia?
What is the cheapest way to transfer money from Canada to Asia? [except PayPal]

Answer: Look at Western Union.

Question: How do I transfer money to Canada cheap?
I know wire transfer but its expensive. Which bank gives it cheap?

Answer: The western union can be expensive but it is instant. When I lived in the UK I used Barclays International transfer which saved some money but can take 7 business days. You need to know the other person’s account details and sort code and then simply transfers. If your bank offers it, Interac Email Money Transfer is easy and very inexpensive, usually about $1.25 per transfer. Check with your bank to see if it’s available. You could also try PayPal but the person you are sending money to would need a PayPal account.