What you need to know about bank transfers in Canadian dollars (CAD)
Canada is an attractive option for living and working, which is why it welcomes thousands of new citizens and dozens of companies every year. No matter what your goals are in this country, you will use bank transfers in Canadian dollars (CAD) anyway.
We remind you that with the help of our BestChange monitoring you will be able to find exchangers who are ready to exchange CAD online in a convenient way and at an acceptable rate.
Banking structure in Canada
While there are over 4,000 commercial banks in the United States, Canada has 77 financial institutions. These include:
- 34 local banks.
- 15 subsidiaries of foreign banks, which are authorized to offer a full range of banking services.
- 28 foreign banks that have opened branches in Canada.
Canada is a dual currency country with payment services in both Canadian (CAD) and American (USD) dollars. However, the USD payment systems are separate and unique to the U.S. systems.
Let's look at the three main payment systems through which CAD bank transfers can be made legally under the supervision of the Bank of Canada.
Transfers with Lynx
Lynx is a system for sending large and urgent payments. Lynx replaced LVTS (Large Value Transfer System) in 2021 as part of Canada's efforts to modernize payments.
Lynx wire transfers are supported by a legal framework that allows large-value, urgent payments to be sent with real-time settlement. This allows recipients to use funds immediately as they become available, with the confidence that the payment will not be cancelled for any reason.
ACSS Transfers
Automated Cashless Settlement System (ACSS) is a cashless payment system for cheques and electronic goods (broadly analogous to the US ACH) such as pre-authorised PAD debits and direct deposits.
Both Lynx and ACSS are operated by Payments Canada (formerly the Canadian Payments Association). Payments Canada is currently developing a new system with real-time transfers.
Interac System
Interac's Canadian bank transfer system is designed for P2P, P2B and B2B online transactions.
To send Canadian dollars through Interac e-Transfer, you need to:
- Have an account with a supported bank.
- Associate an email or phone number.
- Open the app and log in to the account.
- Provide the recipient's phone number or email.
- Enter an amount or a control question (the latter is not necessary if the recipient has authorized the automatic top-up of the Interac account).
It is important to make sure that the secret answer is securely transmitted to the recipient.
Enhancements to CAD bank transfers
Due to the need to better control cash flow, Payments Canada launched a multi-year modernisation initiative. With the support of the Canadian banking industry and companies within the country, Payments Canada is improving payment infrastructure and technology to remain competitive in the global marketplace.
Specifically, Payments Canada is working on a proprietary system called Real-Time Rail (RTR) that will utilize ISO 20022 standards.
Mobile banking and APIs are also contributing to the innovation initiative. Payments Canada offers a developer portal that allows companies to create their own API connections.
