Description

What’s the SC to send money from Canada to USA?

What’s the Fee to Send Money from Canada to USA?

I am currently in Canada and need to send $5 USD to an email address in the USA. I have been using PayPal for years, and during transactions, they always withdraw the money from my credit card. Do you have any idea of the service charges I would incur for this transaction? If the fees exceed $5 or $10, I may have to abandon the idea.

Thank you in advance for your information.

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### Sending a Small Amount of Money from Canada to USA

Transferring funds internationally, especially small amounts like $5 USD, can become quite tricky due to transaction fees. When it comes to sending money from Canada to the USA, there are usually service charges involved, and these can sometimes be quite substantial in relation to the amount being transferred. With PayPal being one of the more recognized platforms, let’s take a look at their fee structure and explore some alternatives for sending a small sum like $5 USD.

#### PayPal Fees

PayPal’s fee structure is as follows:
– When you fund your account with a bank account or debit card, there are no fees.
– When you fund your account with a credit card, PayPal charges a 2.7% + $0.30 fee.

Given this, let’s calculate the total fee for sending $5 USD from a credit card:
– 2.7% of $5 is $0.135, and adding the $0.30 flat fee, the total fee would be approximately $0.435, meaning PayPal will only take $0.44.

But you have to remember, PayPal is withdrawing the amount from your card, so the $0.44 plus the $5, comes to $5.44. Thus, you would have to pay more than the initial $5, making PayPal’s service impractical in this scenario as the fee would exceed the amount you aim to send.

#### Other Options

**1. Bank Transfers:**
Many banks such as CIBC, RBC, and TD Bank allow for international money transfers. However, sending such a small amount might not be feasible because the transaction fees will either be very high or minimum transaction amounts exist (often around $50).

**2. Cryptocurrencies:**
Platforms like Coinbase or Binance can be used for cryptocurrency transactions. However, cryptocurrencies can be volatile and the fees, while generally lower, might still be substantial for such a small transaction.

**3. International Money Service Platforms:**
There are other money transfer platforms such as TransferWise (now known as Wise) and Remitly. They usually charge a percentage fee and a fixed fee, which can add up for small transactions. Wise, for example, charges, around 0.8% + $0.25 for international transfers. For a $5 transfer, the fee would be minimal, but it’s still a good idea to double-check their fee calculator.

**4. Rounding Down to Zero:**
One interesting tip is to check if there are opportunities to round down transactions at places where you are spending your money in the USA to the nearest dollar and then keeping the change as a cash tip. This wouldn’t involve any fee, but it’s not always practical.

**5. Consider Larger Batches:**
If you’re frequently sending small amounts, think about accumulating these smaller sums into a larger transaction that spreads the fee percentage over each amount.

**Conclusion**

Given the scenario, using PayPal to send just $5 USD is probably not the best approach considering the percentage-based fees. Exploring other smaller batches or alternative methods would be more cost-effective and feasible.

If you need to send such a small amount frequently, consider whether there is a way to accumulate a larger sum to be transferred less often. This would help in minimizing the percentage-based fees, making the transaction more economical.

In any case, always check the latest fee structures and transaction limits of the various platforms before you make a transaction to make the best decision.

I hope this helps! If you’re facing similar challenges or have other questions, feel free to share your thoughts in the comments below.