Calgary

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International Transfers

Insights on transferring money to and from Canada using banks, online platforms, or other services.

Sections

1. Overview of International Money Transfers

International money transfers allow you to send funds from Canada to another country in a different currency. This process typically involves:

  • Currency conversion: Converting Canadian Dollars (CAD) to the recipient's local currency.
  • Transfer fees: Costs associated with the transfer, which vary depending on the service provider.
  • Exchange rates: Rates at which CAD is converted to the foreign currency, which can significantly impact the total cost.

2. Currency Conversion Options

When transferring money internationally, currency conversion is a key factor. Here are the main options:

a. Bank Exchange Rates

  • Banks typically offer less favorable exchange rates compared to specialized money transfer services.
  • They may add a markup to the mid-market exchange rate (the rate banks use to trade currencies among themselves).

b. Money Transfer Services

  • Services like Wise (formerly TransferWise), OFX, and Remitly often provide better exchange rates with lower markups.
  • These services use the mid-market rate or a rate close to it, making them more cost-effective.

c. Currency Exchange Bureaus

  • If you need cash in a foreign currency, you can use currency exchange bureaus in Calgary. However, these are not ideal for large international transfers due to higher fees and less favorable rates.

3. Associated Costs

When transferring money internationally, youโ€™ll encounter the following costs:

a. Transfer Fees

  • Banks: Typically charge $15โ€“$50 per transfer, depending on the amount and destination.
  • Money Transfer Services: Fees vary but are often lower than banks. For example:
    • Wise: Transparent fees based on a percentage of the transfer amount.
    • Western Union: Fees depend on the transfer method (bank transfer, cash pickup, etc.).

b. Exchange Rate Markup

  • Banks and some services add a markup to the exchange rate, which can make the transfer more expensive.
  • Services like Wise and OFX minimize this markup.

c. Receiving Fees

  • Some banks in the recipientโ€™s country may charge a fee for receiving the funds. Check with the recipientโ€™s bank to confirm.

d. Additional Costs

  • SWIFT Network Fees: For bank transfers, intermediary banks may charge additional fees if the transfer goes through the SWIFT network.
  • Urgency Fees: Expedited transfers may incur higher fees.

4. Recommended Banks and Money Transfer Services in Calgary

Here are some reliable options for international transfers:

a. Banks

  1. RBC (Royal Bank of Canada)

    • Offers international wire transfers via online banking or in-branch.
    • Fees: $13.50โ€“$45 depending on the transfer method.
    • Exchange rates: Markup applied to the mid-market rate.

  2. TD Canada Trust

    • Provides wire transfers and foreign exchange services.
    • Fees: $10โ€“$50 depending on the destination and transfer amount.
    • Exchange rates: Markup applied.

  3. Scotiabank

    • Offers international money transfers through its Global Money Transfer service.
    • Fees: Often waived for certain countries.
    • Exchange rates: Competitive but include a markup.

  4. CIBC (Canadian Imperial Bank of Commerce)

    • Allows international transfers via online banking or in-branch.
    • Fees: $15โ€“$80 depending on the transfer method.
    • Exchange rates: Markup applied.

b. Money Transfer Services

  1. Wise

    • Known for transparent fees and mid-market exchange rates.
    • Ideal for smaller transfers due to low costs.
    • Process: Create an account, input transfer details, and fund the transfer via bank transfer or debit/credit card.

  2. OFX

    • Best for larger transfers (over $10,000 CAD) due to fee waivers and competitive rates.
    • Process: Register online, lock in an exchange rate, and fund the transfer.

  3. Western Union

    • Offers cash pickup and bank transfers.
    • Fees: Vary based on the transfer method and destination.
    • Exchange rates: Markup applied.

  4. Remitly

    • Popular for remittances to family and friends.
    • Fees: Low fees for bank transfers; higher for cash pickups.
    • Exchange rates: Competitive.

  5. PayPal

    • Convenient for small transfers.
    • Fees: 2.5%โ€“4% of the transfer amount.
    • Exchange rates: Markup applied.

5. Procedures for International Transfers

Hereโ€™s a step-by-step guide to transferring money internationally:

a. Using a Bank

  1. Set Up the Transfer:
    • Log in to your online banking account or visit a branch.
    • Select the international transfer option.
  2. Provide Recipient Details:
    • Full name, address, and bank account details (including IBAN or SWIFT code).
  3. Choose the Amount and Currency:
    • Specify the amount in CAD or the recipientโ€™s currency.
  4. Review Fees and Exchange Rates:
    • Confirm the total cost of the transfer.
  5. Authorize the Transfer:
    • Complete the transaction and save the receipt for reference.

b. Using a Money Transfer Service

  1. Create an Account:
    • Sign up on the serviceโ€™s website or app.
  2. Input Transfer Details:
    • Enter the recipientโ€™s name, address, and bank account information.
  3. Fund the Transfer:
    • Pay via bank transfer, debit card, or credit card.
  4. Confirm and Track:
    • Review the details, confirm the transfer, and track its progress.

6. Local Considerations in Calgary

  • Banking Hours: Most banks in Calgary operate Monday to Friday, 9:30 AM to 5:00 PM. Some branches may open on Saturdays.
  • Online Banking: All major Canadian banks offer robust online banking platforms for international transfers.
  • ID Requirements: For in-branch transfers, bring valid government-issued ID (e.g., passport, driverโ€™s license).
  • Currency Exchange Bureaus: If you need cash in a foreign currency, consider reputable bureaus like Calforex or ICE Currency Exchange, which have locations in Calgary.

7. Tips for Reducing Costs

  • Compare Providers: Use online comparison tools like Monito to find the best rates and fees.
  • Avoid Urgent Transfers: Plan ahead to avoid paying extra for expedited services.
  • Use Online Services: Online money transfer services often have lower fees than banks.
  • Transfer Larger Amounts: Some providers waive fees for larger transfers.

8. Legal and Tax Considerations

  • Reporting Requirements: Transfers over $10,000 CAD may be reported to the Canada Revenue Agency (CRA) for anti-money laundering purposes.
  • Tax Implications: If the transfer is a gift or income, consult a tax advisor to understand any potential tax obligations.

By following this guide, you can efficiently and cost-effectively transfer money internationally from Calgary, Canada. If you have specific questions about a particular service or need further assistance, feel free to ask!