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Platform-based businesses thrive on strong partners—see how mass payments tech streamlines operations, reduces risk, and boosts partner retention.
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Digital companies that rely on platform-based models know how important their partners are. See how mass payments technology can improve operations and cut down on risks, all while helping you attract and keep those key partners.
Cross-border payments are essential for Canadian businesses, but high fees, FX uncertainty, and delays—especially in B2B transactions—create challenges. This guide outlines top international payment methods to help reduce costs, save time, and strengthen global partnerships.
What are International Payment Methods?
International payment methods are tools and systems used by Canadian businesses to send money across borders. These include wire transfers, Global ACH, card payments, and digital platforms—each offering different benefits in terms of cost, speed, and compliance. Understanding these options helps Canadian companies choose the right mix to pay global suppliers, contractors, and employees efficiently.
Key Takeaways
- Relying on a single international payment method like wire transfers often leads to higher costs, slower speeds, and poor partner experiences for Canadian businesses.
- Using multiple payment methods—like Global ACH, card payments, and fintech platforms—helps manage costs, mitigate FX risks, and improve relationships with global suppliers.
- Manual international payments create significant administrative overhead, making automation platforms essential for managing compliance, validation, and reconciliation at scale.
- To remain competitive, Canadian businesses must adopt scalable, automated solutions that offer flexibility, regulatory compliance, and streamlined global payment workflows.
Why Your Canadian Business Needs a Multi-Method Approach
Relying solely on one way to handle your international payments, perhaps sticking just to the familiar wire transfer, might seem simple initially. However, you’ll quickly find this one-size-fits-all strategy often falls short. The reality is that your partners spread across different regions have vastly different payment preferences.
Meeting Your Global Partners’ Needs
These payment preferences are shaped by their local banking infrastructure, the transaction fees they might incur, and a desire to receive funds in their own currencies. Offering multiple payment methods isn’t just a courtesy; it’s smart business. It shows you value the relationship and can lead to better terms.
Optimizing for Cost, Speed, and Risk
A flexible approach allows you to optimize your own payments. Choose faster, pricier methods like wires when speed is critical and a direct connection feel is desired, or lean on more cost effective local payment methods.
For example, consider Global ACH or bank transfers for routine invoices. This flexibility helps manage cash flow and can subtly mitigate risks associated with relying on one platform.
The Management Hurdle of Multiple Methods
Of course, manually managing multiple currencies, different payment details, various financial institutions, and potentially separate payment gateways is a significant administrative burden. It demands time from your finance team. This complexity is why understanding each global payment method is crucial for your Canadian business looking to save time.
Top International Payment Methods for Canadian Businesses
Making international payments involves choosing from several distinct payment methods, each with its own payment processes, benefits, and drawbacks. Understanding these is key to managing your global payables effectively from Canada.
Before we examine each in detail, let’s outline the main categories you’ll encounter:
Key Categories of International Payment Methods
- Bank-to-Bank Transfers: These are the traditional methods for moving funds between bank accounts globally. This category includes international wire transfers and global ACH and local bank transfers.
- Card Payments: Primarily using corporate credit cards (Visa, Mastercard, Amex) for specific types of international expenses, offering convenience but often with higher FX costs.
- Digital Wallets and Payment Platforms: A diverse group, including common digital wallets like PayPal, fintech transfer specialists like Wise, Payoneer, or Remitly, and AP automation platforms like Tipalti.
- Legacy Methods: Including paper checks, which are rapidly declining for international use due to inefficiency and risk.
Now, let’s explore each of these categories in more detail to understand their specific characteristics when used by your Canadian business.
The Traditional Route – International Wire Transfers (SWIFT)
When you think of sending significant sums across borders, the international wire transfer is likely the first method that comes to mind. It’s a long-established way for your business to send funds directly from your Canadian bank account to a recipient’s bank account almost anywhere in the world.
How Wires Work
These bank transfers use the SWIFT network for instructions, moving funds between the two accounts via correspondent banks. You’ll initiate wires via your bank’s portal or treasury platform, requiring precise beneficiary payment details (SWIFT/BIC, IBAN, etc.). Errors here are a primary cause of failures.
The Upsides of Wires
Advantages include perceived security features and wide acceptance by global financial institutions. They are often used for large, one-off international transactions. Speed can be decent (1-5 business days), depending on the destination.
The Downsides and Costs (Especially from Canada)
Wires come with drawbacks for Canadian businesses. Costs include an outgoing wire fee from your Canadian bank, potential intermediary bank fees deducted mid-flight, and potentially receiving fees, impacting both the sender and receiver financially.
Plus, there’s often significant hidden costs in the FX spread applied during currency conversion.
Failures require costly trace investigations, adding delay and additional costs. Remember FINTRAC reporting requirements for transfers over $10,000 CAD.
Global ACH and Local Bank Transfers
Seeking a more cost effective alternative to expensive wire transfers for your international payments? Global ACH (Automated Clearing House ) or, more broadly, local bank transfers, present a compelling payment option, especially for recurring payments like supplier invoices or international payroll.
How Global ACH/Local Transfers Work
These payments use the local payment methods and clearing systems in the recipient’s country (US ACH network, SEPA, BACS, etc.), sometimes referred to collectively as international ACH or local transfers.
This drastically reduces transaction fees compared to wires. The goal is payment directly into the payee’s local bank account in their own currency.
Accessing These Networks from Canada
Direct access from Canadian bank accounts is often limited. You’ll typically access these local payment methods via specialized payment platforms or fintech providers who have established local banking infrastructure.
Information Needs: Precision is Paramount
Local bank transfers require precise local payment details, which vary globally (Routing Numbers for US, IBAN for SEPA, Sort Codes for UK, etc.). Collecting and validating this diverse information is a hurdle for your finance team. Errors lead to failures, though usually with lower resolution costs than SWIFT traces.
Weighing the Pros and Cons
The primary advantage is cost. They are ideal for batch payments (mass payments). The main trade-off is usually speed (often 2-5 business days due to batch processing, though some networks offer instant payments). You need a partner providing access to the necessary local payment methods for the different regions you pay into.
Using Corporate Cards Across Borders
For certain types of international payments, using your Canadian-issued corporate credit card (Visa, Mastercard, Amex) offers undeniable convenience, such as for SaaS subscriptions or smaller online purchases where vendors accept payments via card payments.
The Convenience Factor
The process is familiar, using card network payment details to process transactions. It bypasses collecting bank account information for certain transactions.
Costs and Limitations (Canadian Focus)
Convenience comes at a cost. Be aware of Foreign Transaction Fees (typically 2.5 %+) charged by your Canadian bank on top of the card network’s currency conversion rate. Avoid Dynamic Currency Conversion (DCC) offered by merchants, as the rate is usually much worse; always choose to pay in the local currency.
B2B suppliers may not accept card payments for large invoices due to their own processing fees. Reconciliation of FX-laden card statements with your accounting software can also be challenging for the finance team.
When It Makes Sense
Cards work best for predictable, recurring international transactions or T&E. For large supplier payments, other payment methods are usually better. Using prepaid cards internationally is possible but often carries similar fees.
Digital Wallets and Payment Platforms
Beyond traditional bank channels and direct card usage, the fintech landscape offers specialized tools for handling international payments like digital wallets and centralized platforms.
Familiar Wallets – PayPal
PayPal is convenient for certain cross border payments (freelancers, online shopping), often just needing an email address. However, percentage-based transaction fees become costly for large B2B amounts. Recipients need PayPal accounts, and unexpected fund holds can impact cash flow.
Fintech Transfer Specialists (Wise, etc.)
Companies like Wise often specialize in FX transparency (mid-market rate + fee) and use local payment methods. These services are cost effective for transfers where FX is key, favoured by small businesses or those paying individuals. They might lack deep AP workflow or mass payments features.
AP Automation and Mass Payment Platforms
Platforms like Tipalti offer comprehensive solutions for businesses managing global payables via one platform. They orchestrate multiple global payment methods, simplifying the entire process.
Key capabilities often include automated supplier onboarding (validating global payment details and tax info), multi-method execution (wire transfer, Global ACH/local bank transfer, PayPal, prepaid debit cards), integrated compliance checks (local regulations, sanctions), FX management tools, mass payments execution, and deep reconciliation sync with accounting software.
These platforms focus on automating the end-to-end workflow, addressing the burden of international transactions at scale and saving finance team time.
A Note on International Cheques
While technically a payment method, sending traditional paper checks drawn on your Canadian business bank account internationally is generally not recommended for business payments.
Clearing takes weeks/months, fees are high, risk is significant, and tracking is difficult. Electronic payment options are far superior for cost effective, secure international transactions.
Key Considerations for Your Canadian Payment Strategy
Choosing the right mix of international payment methods requires a strategic approach. Evaluate payment options considering these Canadian factors.
Calculating Your Total Payment Cost
Look beyond visible transaction fees. Factor in FX spreads and internal AP processing time (onboarding, validation, initiation, reconciliation, errors). Manual payment processes inflate true costs.
Managing Canadian Dollar Exchange Rate Risk
Develop an FX policy — will you pay in CAD or local currency? Will you actively manage different currencies and currency conversion using bank rates, hedging, or platform tools?”
Regulations Matter
Ensure payment processes adhere to Canadian FINTRAC rules and tax reporting (T4A/T5018s). Comply with local regulations in payee countries.
Keeping Your Payees Happy by Offering Choice
Cater to payee payment preferences in different regions. Offering cost effective and convenient payment options, including local payment methods / own currencies, improves relationships. Ensure clear communication and accurate payment details collection.
Planning for Growth — Scalability and Automation
Manual payment processes don’t scale. Consider payment solutions automating onboarding, validation, execution across multiple payment methods, compliance, and reconciliation, especially for mass payments to many countries, to save time.
Improve how your Canadian business handles global payments
Explore smarter ways to reduce fees, manage FX risk, and strengthen supplier relationships across borders—all in one guide.
Streamlining Your International Payments
Manually juggling multiple currencies, methods, bank accounts, compliance checks, and reconciling cross border payments is complex for Canadian businesses. This consumes finance team resources and introduces risk.
How Automation Solves the Challenges
AP automation and mass payment platforms act as one platform to centralize the entire process. They automate data validation, optimize global payment routing via cost effective rails, integrate compliance, simplify FX, handle mass payments, and sync with accounting software.
This allows your finance team to focus on strategy, supporting business growth in new markets.
The Future of Canadian International Payments
Navigating international payments from Canada requires informed choices. Understanding top global payment methods – Wires, Global ACH/local bank transfers, card payments, and Platforms – is key. Balancing cost, speed, compliance, and payee payment preferences is also crucial.
Efficient international payments are vital for maintaining strong global relationships. As Canada’s payment industry evolves (ISO 20022, potential RTR impact), the demand for streamlined, automated, compliant payment processes will grow.
Strategically evaluating payment options and leveraging automation empowers your Canadian business to succeed globally across many countries and within the complex payment ecosystem. To help you evaluate these options in greater detail, download our free Top Global Payment Methods eBook.
Frequently Asked Questions about International Payments from Canada
What’s really the cheapest way to send money internationally from Canada?
There’s no single cheapest method — it depends on the amount, destination, and speed. Generally, Global ACH / local bank transfers have lower per-transaction fees than wire transfers.
However, the FX spread on wires from banks is often the biggest hidden cost. To find the truly cost effective option, compare the total cost: wire fee + potential intermediary fees + FX cost vs. a platform’s fee + exchange rate (check if it’s near the mid-market rate). Calculate the all-in cost for your specific international payment.
How fast are international payments? Can I get instant payments?
Speed varies greatly. Wire transfers can take 1-2 days, but often 3- 5+ due to correspondent banking delays and cut off times. Global ACH / local bank transfers depend on the destination network (e.g., US ACH: 1-3 days; UK Faster Payments: near-instant).
True cross-border instant payments are still limited globally, though Canada’s future RTR and ISO 20022 messaging aim to improve interoperability. Some payment platforms expedite payments using optimized routing, but final settlement speed depends on the receiving country’s system.
Do I need to report international payments to FINTRAC in Canada?
Yes, Canadian businesses must comply. FINTRAC requires reporting of international EFTs (including wire transfers) of $10,000 CAD+ (single or aggregated in 24 hours). Your Canadian bank usually reports these automatically. However, verify reporting responsibility if using third-party payment platforms.
Crucially, your business must keep detailed records of these international transactions and perform appropriate KYC checks as part of your compliance program, regardless of who submits the initial report to FINTRAC.
What’s the best way to pay suppliers in the US vs. Europe vs. Asia from Canada?
Recipient payment preferences matter most – always ask. Generally, the US prefers US ACH (needs Routing #). Europe (SEPA Zone) prefers SEPA Credit Transfers (needs IBAN). UK prefers BACS or Faster Payments (needs Sort Code).
For Asia and other regions, requirements vary widely; wires or specific local bank transfer networks accessed via platforms are common. Using local payment methods in the recipient’s own currency is usually best for cost and relationship. Payment platforms simplify accessing diverse global rails.
How do I avoid common errors and payment failures?
Incorrect beneficiary payment details are the main cause. Use Rigorous Validation before sending payments: check IBAN formats for Europe, verify Routing/Sort/BSB codes for other regions.
Utilize Supplier Onboarding Portals from AP automation platforms — these allow suppliers to enter their own data directly and often include built-in validation rules, reducing manual errors by your finance team. Clear communication with suppliers to confirm details, especially for initial payments, is also essential.
Can I use Interac e-Transfer for international payments?
Not directly; the standard Canadian Interac e-Transfer is domestic only. Services branded “Interac International Transfer” typically use the familiar e-Transfer interface but send funds via card network rails (Visa Direct/Mastercard Send) internationally to linked cards or bank accounts.
These services usually have lower limits and different fees than domestic e-Transfers, making them generally unsuitable for large B2B invoice payments. They are more common for P2P or small B2C transactions.
