The cheapest way to send money internationally for small business is almost never your bank — and the difference in cost is not marginal. On a $5,000 transfer, the gap between what a Canadian bank charges and what a specialist platform charges can be $150–$300 per transaction. For a business making regular international payments, that adds up to thousands of dollars per year going to your bank instead of your business. This guide shows exactly where the costs hide and how to eliminate them.
Banks charge for international transfers two ways: the flat fee you see at checkout, and the exchange rate markup you never see. The second one is almost always larger than the first.
Where the Real Cost Is Hidden
Most small business owners focus on the wire transfer fee — typically $25–$45 at Canadian banks. That is visible and easy to compare. The hidden cost is the exchange rate markup.
When your bank converts CAD to USD (or any other currency), they use their own rate — not the mid-market rate you see on Google. The difference between the bank's rate and the real rate is typically 2–4%. On a $10,000 transfer, that is $200–$400 that disappears silently into the bank's margin before a single dollar reaches the recipient.
Total cost of a $5,000 CAD international transfer:
- TD Bank: $30 flat fee + ~2.5% exchange markup = ~$155 total cost
- RBC: $35 flat fee + ~2.5% exchange markup = ~$160 total cost
- Wise: ~$21 total (0.42% fee, real mid-market rate, no markup)
- PayPal: ~$175–$200 total (receiving fee + 3–4% exchange markup)
The specialist platforms win because they use the real exchange rate and charge a transparent percentage fee — nothing hidden, nothing marked up.
The Best Options for Small Business International Transfers
1. Wise — Best Overall for Small Business
Wise (formerly TransferWise) is the benchmark for international business transfers. It uses the real mid-market exchange rate — the rate you see on Google — with a transparent fee of 0.4–1.5% depending on the currency pair. No hidden markup. No surprises.
The feature that makes Wise particularly valuable for small businesses: local account details. Wise gives you a real US bank account number, UK sort code, EU IBAN, and Canadian account details. Your international clients pay you "locally" in their own currency — no international wire on their end, no fees for them. The money lands in your Wise multi-currency account and you convert when the rate suits you.
Best for: Regular international payments, receiving client payments from abroad, freelancers and service businesses with international clients.
Fees: 0.4–1.5% of transfer amount. Free to receive in local account currencies.
2. OFX — Best for Large Transfers
OFX specialises in larger business transfers — typically $1,000+. It offers competitive exchange rates (closer to mid-market than banks) with no transfer fees on most transactions. The business account includes forward contracts (lock in today's rate for a future transfer) which is valuable for businesses with predictable international payment schedules who want to hedge against exchange rate fluctuations.
Best for: Larger transfers ($5,000+), businesses that need forward contracts, importing businesses paying overseas suppliers.
Fees: No transfer fees. Revenue comes from exchange rate spread (smaller than banks but larger than Wise).
3. Stripe — Best for Receiving International Client Payments Online
If your business receives international payments through an online checkout — ecommerce, online services, digital products — Stripe is the most complete solution. It accepts payments in 135+ currencies, handles the conversion automatically, and deposits in your local currency.
Stripe is not the cheapest for peer-to-peer transfers but it is the right tool when you need a full payment infrastructure for a business that sells internationally online.
Best for: Businesses receiving international payments through a website or app.
Fees: 2.9% + 30¢ per transaction + 1.5% international fee.
4. Your Bank — When to Actually Use It
Banks are not always wrong for international transfers. Use them when:
- The recipient's bank requires a traditional SWIFT wire transfer and cannot receive via Wise or OFX
- The currency pair is obscure and specialist platforms do not support it
- The transfer is very large and your bank offers a negotiated rate for high-value transfers
- Speed is critical and same-day wire transfer is required
Outside of these specific cases, a specialist platform will cost you less.
How to Set Up International Payments for Your Business (Step by Step)
- Open a Wise Business account — sign up, verify your identity and business, pay the one-time setup fee. Takes 24–48 hours for business verification.
- Get your local account details — once verified, Wise gives you account numbers in USD, GBP, EUR, and CAD. These are real local account details — not virtual routing numbers.
- Update your invoices — add your Wise USD account details to invoices sent to US clients. They pay via domestic ACH — no international wire, no fees on their end. Your cost to receive: $0.
- Convert and withdraw strategically — let foreign currency balances accumulate in your Wise account. Convert to CAD when the rate is favourable. Withdraw to your Canadian bank account (small fee, typically $1–$3).
- Pay international suppliers through Wise — enter the recipient's bank details, select the currency, confirm the fee upfront, send. Typical delivery: 1–2 business days.
Currency Pairs: Which Platforms Are Cheapest for Each
- CAD → USD: Wise (0.42%) beats all banks and PayPal
- CAD → EUR: Wise (0.51%) or OFX for larger amounts
- CAD → GBP: Wise (0.92%) — still significantly cheaper than banks
- CAD → INR, PHP, NGN: Wise (1.2–2%) — check rates at time of transfer; some corridors favour specialist providers
- USD → CAD: Wise consistently cheaper than banks; rates update in real time
Always check the Wise fee calculator before transferring — rates update daily and the displayed fee is exactly what you pay with no surprises at checkout.
The Bottom Line
For most small businesses the cheapest way to send money internationally is Wise for regular transfers under $50,000 and OFX for larger or forward-contracted payments. Both eliminate the bank exchange rate markup — the largest hidden cost in international transfers.
If your business is still using bank wire transfers for international payments, calculate what you spent on fees and exchange markup last year. For most active businesses the number is surprising — and entirely avoidable.
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