Most Canadian banks convert USD deposits to CAD immediately — at a rate 2–4% worse than the mid-market rate. On a $10,000 USD invoice, that is $200–$400 gone before you touch it. Here are the practical ways to receive USD in Canada and keep more of it.
The Three Approaches
Approach 1: Wise Business (Recommended)
With a Wise Business account ($55 CAD one-time fee), you get a real US bank account — a routing number and account number at Wise’s partner bank in the US. Your US clients send payment via ACH (standard US bank transfer) to this account as if you were a local US business. No wire fees for them, no incoming fee for you on ACH payments.
You then hold the USD in your Wise account and convert when you need CAD — at the mid-market rate plus ~0.63% fee. On $5,000 USD, you lose roughly $32 in conversion vs $125–$175 if converting at a Canadian bank rate.
Setup time: 1–3 business days for verification.
Ideal for: Freelancers with regular USD invoices who want the best cost structure over time.
Approach 2: Stripe with USD Payout Account
If US clients prefer paying by credit card, set up Stripe and configure your payout account as your Wise USD account (routing + account number). Stripe charges 2.9% + $0.30 CAD for domestic cards, 4.4% for international cards. No additional FX fee if you receive payout in USD to your Wise account (save Stripe’s 1% FX markup by bypassing conversion at Stripe).
Ideal for: Freelancers whose clients prefer credit card payment, particularly B2C or US individual clients.
Approach 3: Bank Wire (SWIFT)
Client sends a SWIFT wire from their US bank to your Canadian bank’s USD wire account. Most Canadian banks charge $15–$20 to receive an incoming wire, and the bank converts USD to CAD at their rate (2.5–3.5% markup). The client also pays $15–$30 in outgoing wire fees.
Ideal for: Single large one-time transactions where both parties accept the wire fee, or clients who are not set up for ACH and refuse alternatives.
Side-by-Side Cost Comparison: Receiving $3,000 USD
| Method | Your Cost | Client’s Cost | CAD Received (at 1.36) |
|---|---|---|---|
| Wise Business (ACH in) | ~$26 in conversion | $0 (domestic ACH) | ~$4,052 CAD |
| Stripe → Wise USD | ~$87 + $0.30 (card fees) | $0 | ~$3,982 CAD (after Stripe) |
| Canadian bank USD wire | $15–$20 incoming | $15–$30 outgoing | ~$3,856–$3,900 CAD (bank rate) |
| PayPal | ~$105 (3.49%) + FX spread | $0 (if PayPal balance) | ~$3,740–$3,800 CAD |
How to Ask US Clients to Pay by ACH
Most US clients are comfortable with ACH. The payment instructions on your invoice should read:
Payment by US bank transfer (ACH):
Bank: [Your Wise partner bank name]
Routing number: [Your Wise US routing number]
Account number: [Your Wise USD account number]
Account type: Checking
Account holder: [Your legal name or business name as registered on Wise]
Most US clients send ACH payments in 1–3 business days at zero cost to them through their regular online banking bill payment.
Frequently Asked Questions
Do I need to report USD exchange rate gains to the CRA?
Foreign currency exchange gains on business income are generally included in your business income — you report the CAD equivalent of your USD invoice at the Bank of Canada rate on the date received. If you hold USD and convert later at a higher or lower rate, the difference is a foreign currency gain or loss. For most freelancers, this is minor and handled automatically by converting using the rate on the date received. A CPA can advise on FX treatment if your USD balances are significant.
Can I invoice US clients in USD even though I’m in Canada?
Yes. There is no restriction on invoicing in a foreign currency. In fact, most US clients prefer receiving USD invoices — CAD invoices create currency inconvenience for them. Invoice in USD, receive in USD, and manage the conversion on your end using the method that minimizes your costs (Wise Business being the most efficient for most freelancers).
What if my US client insists on paying by cheque?
US dollar cheques can be deposited to a Canadian bank USD account. Call your bank to confirm the process — some require the cheque to clear in the US (10–20 business days hold) before funds are available. This is the slowest and most administratively awkward method. Gently encourage clients to use ACH instead: “We prefer ACH for faster processing — I can provide US bank routing and account details.”