Source: https://rivet.global/blog/canada-companies-us-clients-collect-usd
Published: 2026-09-29 · Updated: 2026-09-29 · By Rashidatou K.

# Canadian companies with US clients: collecting dollars without the bank's conversion

Why US dollar payments to Canadian accounts lose value, how US account details let American clients pay by ACH, and when a Canadian company should convert to CAD.

## Key takeaways

- US dollars paid into a Canadian dollar account are converted on arrival at the bank's rate, which includes a margin.
- American clients pay faster and in full when they can pay by ACH to US account details.
- Many Canadian companies have US dollar costs too; paying them from US dollar revenue avoids two conversions.
- US clients will ask Canadian companies for a W-8BEN-E; the Canada-US tax treaty generally removes withholding on services performed in Canada.

A Toronto marketing agency earns 70 percent of its revenue from American clients. Each pays by wire into the agency's Canadian dollar account, which converts on arrival. The agency then buys US dollars to pay for its ad tools, a freelance developer in Austin and conference travel. Its bank earns a margin in both directions, and the agency never chooses the rate.

## Where the value goes

When US dollars land in a Canadian dollar account, the bank converts them at its retail rate. That rate typically sits some way from the mid-market rate. On a large US client base, the annual cost is real money, and it comes with no choice about timing.

Cross-border wires add another layer: the American client's bank may route through an intermediary that deducts a fee, and some Canadian banks charge to receive.

## Let US clients pay like US clients

American companies pay vendors by ACH. US account details in your company's own name let them do exactly that. The payment arrives in full, usually in one to two business days, with a reference that matches the invoice. Accounts payable teams that delay foreign wires often pay ACH vendors on time.

## Hold US dollars

Canadian businesses with American clients often have American costs: software subscriptions, advertising, US contractors, trade shows, US-based staff. Paying them from a US dollar balance avoids converting Canadian dollars back. Convert only the surplus, when you need Canadian dollars, at a rate you see before you confirm.

## Tax and records

US clients will ask for Form W-8BEN-E. With it, and the Canada-US tax treaty, payments for services you perform in Canada are generally made without US withholding.

For Canadian tax, record US dollar transactions in Canadian dollars using the Bank of Canada rate or another rate the CRA accepts, applied consistently. Statements that show the rate on each conversion make this easier.

## Paying into Canada: the local rail

| What | Detail |
|---|---|
| Local rail | Interac e-Transfer for instant transfers; EFT for batch payments |
| Run by | Interac Corp.; Payments Canada |
| Settlement | Interac e-Transfer in seconds, with limits set by each bank; EFT within one business day |

Source: [Payments Canada: systems](https://www.payments.ca/systems-services). Checked when this guide was last updated; the scheme's own page has the current figures.

## Where Rivet fits

A Rivet business account gives a Canadian company US account details in its own name on every plan, for ACH and wires. On the Scale plan it adds Canadian dollar details, so Canadian clients can pay locally too, and balances in 30 currencies. Dollars can be held, spent with Visa company cards, paid to contractors in 120+ countries, or converted at a rate shown before you confirm. Rivet is not a bank; regulated partner institutions hold the funds.

See also [the CAD business account guide](/blog/cad-business-account).

## Questions

### Why does my US client's payment arrive as less in Canadian dollars than expected?

Your bank converted it at its own rate, usually wider than the mid-market rate, and possibly after an intermediary fee on a wire.

### Can American clients pay a Canadian company by ACH?

Only to US account details. A Canadian account requires a cross-border wire or a slower international ACH arrangement.

### Should a Canadian company keep US dollars?

If it pays for US software, contractors, travel or ads, yes. Convert the remainder when you need Canadian dollars.

### What tax form do US clients need?

Form W-8BEN-E, confirming the Canadian company is foreign. For services performed in Canada, payments are generally made without US withholding.