How to pay contractors in Canada from the US

Canadian contractors usually want Canadian dollars in their bank account by EFT. A USD wire to a Canadian bank is converted at the bank's rate, which is often wide.

Alexia M.Comparisons and market guides editor

Published: 14 September 2026
Reading time: 1 min read

Canada is next door, shares a time zone and is one of the most common places for US companies to hire contractors. Paying in CAD locally avoids the conversion most Canadian banks apply to USD wires.

Routes

Route	Notes
USD wire to a Canadian bank	Converted at the bank's rate, or credited to a USD account
CAD by EFT	Local transfer, 1 to 2 days
Interac e-Transfer	Domestic; needs a Canadian sender

What you need

Institution number, transit number and account number.
The contractor's legal name.
A W-8BEN.

A $6,000 monthly payment

A Canadian bank converting an incoming USD wire applies its own rate, which can sit well away from mid-market, and may charge an incoming wire fee. A CAD payout at a published 0.5% margin is easy to check against the Bank of Canada rate, and you can still agree the amount in USD in the contract.

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 pays contractors in Canada in CAD on local rails from your USD balance, and pays 120+ other countries the same way. Scale adds CAD account details if you also earn Canadian dollars. Fee and FX show before you confirm. Rivet is not a bank; regulated partner institutions hold the funds. See CAD business account.

Questions people ask

What is the cheapest way to pay a Canadian contractor?

Usually a CAD payout by EFT from a provider with a low FX margin.

Can I use Interac e-Transfer?

Interac is a Canadian domestic system. You need a Canadian account or a provider that offers it to send.

Should I pay in USD or CAD?

Ask the contractor. Many hold USD accounts at Canadian banks; most prefer CAD for everyday use.

Do I withhold US tax?

Not for non-US persons working entirely outside the US. Collect a W-8BEN.

Sources

Written by

Alexia M.

Comparisons and market guides editor

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.