Collecting CAD from Canadian customers as a US company
Canadian companies pay suppliers by EFT in Canadian dollars. A US company that invoices in CAD and has Canadian details gets paid like a local supplier.
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Canada is the largest market for many US service companies. Canadian clients often prefer to pay in Canadian dollars, by EFT, in their normal payment run.
Two ways to get paid
| USD invoice, USD account | CAD invoice, CAD details | |
|---|---|---|
| How the client pays | USD wire or cheque | EFT |
| Who converts | Client's bank | You, when you choose |
| Client friction | High | Low |
A C$22,000 invoice
Paid by USD wire, the client's bank converts at its rate and charges a wire fee. Paid by EFT into CAD details, it arrives in full, and you convert at a rate you can check against the Bank of Canada rate.
Canadian tax
Non-residents selling to Canada may need to register for GST/HST in some cases. Check CRA guidance for your situation.
Hold or convert
If you pay Canadian contractors, hold CAD and pay them from it. Convert the surplus.
Paying into the United States: the local rail
| What | Detail |
|---|---|
| Local rail | ACH for batch payments; RTP and FedNow for instant transfers |
| Run by | Nacha for ACH; The Clearing House for RTP; the Federal Reserve for FedNow |
| Settlement | Same-day ACH within the business day, standard ACH the next; RTP and FedNow in seconds, 24/7, where both banks take part |
Source: Nacha: Same Day ACH. Checked when this guide was last updated; the scheme's own page has the current figures.
Where Rivet fits
Rivet's Scale plan adds CAD account details in the company's name, plus HKD and 25 more currencies, with FX from 0.30%. Starter and Growth can pay out to Canada in CAD from your USD balance. Rivet is not a bank; regulated partner institutions hold the funds. See CAD business account.
Questions people ask
How do Canadian clients pay a US company?
Usually by USD wire or cheque, unless the US company has Canadian account details. With those, they pay by EFT.
Should I invoice in CAD or USD?
CAD is easier for Canadian clients. If you invoice in CAD, hold it or convert at a rate you choose.
Do I charge GST/HST?
Generally not for B2B services by a non-resident not registered in Canada, but registration rules apply in some cases. Check CRA guidance.
How long does EFT take?
Usually one to two business days.
Sources
Alexia compares the accounts, cards and payment tools companies weigh before they switch, and writes Rivet's market guides for founders in a specific country. Prices in Alexia's comparisons come from each provider's own pricing page on the date given in the article, rules come from the regulator or tax authority that sets them, and every source is listed at the end.
More from Alexia M. →This article is general information, not legal, tax or financial advice. Rules and fees change; check the sources above and the provider’s current terms before you act on them.
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