If you’re a Canadian citizen, particularly if you run a business, you might want to open a US payment account in order to send and receive US dollar payments. And with good reason: the American banking system is the largest and most trusted financial network in the world.
A USD account is a very useful resource whether you are making payments to suppliers or staff, receiving payments from clients, making personal transactions with friends and family in the US, or saving, exchanging, or investing your money. However, in the past, it has been challenging to open a USD account from outside of the country.
Fortunately, there are now ways to obtain a USD account as a Canadian citizen regardless of your location or situation.
For instance, at Payset, we provide multi-currencyaccounts that allow you to send and receive local US dollar transactions as if you were in the states. Here are the top ways to open a US payment account in Canada.
Can I open a US payment account in Canada?
Yes. There are several ways to open a USD account as a Canadian citizen, whether for business or individual use.
1. Open a multi-currency account with Payset:
Open a multi-currency account with Payset, and you’ll gain access to most of the standard features of a traditional US bank account.
When you sign up with Payset, you get a dedicated international IBAN account that is registered under your personal or company name. Since we have partner banks in the United States where we hold a portion of all client funds, your Payset account gives you access to the American banking system, allowing you to make local payments as if you were in America. In other words, whenever you send or receive US dollars from your Payset account, your transaction happens as quickly and affordably as a local payment.
In short, with a Payset multi-currency account, you’ll be able to send and receive US dollars just like if you were using a bank in the United States.
2. Open a US payment account in-store at an international bank:
You may be able to open a US bank account from Canada at certain banks even if you are not a citizen of the United States. To do so, you will typically need to visit a US bank branch in person. You will also need to provide various pieces of ID, and you may need to make a deposit.
3. Apply for a US bank account online with an ITIN rather than an SSN:
To open a US bank account in Canada, applicants typically need to provide an SSN or social security number. This is especially true if you plan to apply for a bank account online.
However, SSN numbers are only available to US citizens, foreign workers, and permanent residents. Canadian citizens cannot obtain a social security number.
Canadian citizens and residents of other countries can instead request an Individual Taxpayer Identification Number (ITIN) from the US Internal Revenue Service (IRS). An ITIN number, in combination with other pieces of ID, will allow you to open a US bank account online.
4. See if your non-US bank account can help:
Do you have a bank account at a major Canadian bank? If so, your bank may already have an established relationship with a US bank. For instance, TD Bank has US branches. Your bank may also offer borderless or cross-border accounts, or it may offer accounts denominated in US dollars.
Ask your bank if it can provide you with these or other US banking services.
How much does it cost to open a US payment account in Canada?
It’s generally free to open a US payment account in Canada.
However, any payment account may include a monthly or annual fee. Some accounts may charge you if you carry out a certain number of transactions, if you make a certain number of ATM withdrawals, or if you make a withdrawal on another bank’s ATM network.
You might also need to meet certain requirements to avoid fees. For example, you may need to make monthly deposits or meet total balance requirements.
Nevertheless, it is possible to find accounts with minimal fees (or no fees at all) as long as you take the time to compare various rates and look for the best deal.
Are there different types of US payment accounts?
There are two types of US payment accounts. These can be distinguished by their target audience—that is, whether they are meant for personal or corporate use.
Personal Accounts
If you are an individual managing your own finances, you will need to open a personal payments account. Personal accounts, such as savings and interest accounts, are the most common type of bank account, and they should meet the needs of most USD clients.
Corporate Accounts
If you own or operate a business, you may instead choose to open a corporate account. Choosing this type of account will provide you with additional resources and benefits, and this will allow you to serve your customers with greater credibility. However, you will typically need to provide more extensive documentation in order to open a corporate account.
What do I need to open a US payment account in Canada?
To open a US payment account in Canada, you’ll need to provide identification.
US citizens, as well as certain non-citizens, such as permanent residents and foreign workers, have an SSN or social security number that they can provide during their application.
However, Canadian citizens cannot obtain an SSN. As such, Canadian citizens should obtain an Individual Taxpayer Identification Number (ITIN) in order to open an account.
You might also need to provide other identification documents, including two pieces of government-issued ID, your passport, and a document that proves your address, such as a utility bill. You might need to make an initial deposit to your account as well.
These requirements are not necessarily enough to open an account at any US bank. Still, it may be possible to open a USD account in Canada by providing the above information.
What are some other alternatives to opening a USD account in Canada in person?
Instead of opening a USD account in Canada in person at a major American bank branch, Canadians can instead rely upon online US payment services and multi-currency accounts.
Multi-currency accounts, such as those offered by Payset, are offered by EMIs rather than banks, but they can be used to send, receive, and exchange US dollars all the same.
If you move to the US. permanently, you may choose to open a full US bank account at a later date. Then, you can transfer funds from your multi-currency account to a regular US bank.
Is it possible to open a US payment account in Canada online?
Canadians can begin the process of opening a US payment account online. You can usually begin your application and start providing information on your computer or mobile device.
However, you will likely need to visit an actual US bank branch in person in order to fully complete the registration process. At that point, you’ll need to provide identification. As a result, it’s difficult for Canadian users to open a US bank account entirely online.
Instead, you might consider registering with Payset or other similar bank alternative services that offer multi-currency accounts. These services allow you to hold, send, and receive US dollars and other currencies without the need for a US bank account.
With a Payset account, you can open a US. dollar account entirely online from start to finish.
Pay and get paid locally in the US with a Payset account
Payset offers a variety of features that make it ideal for Canadian citizens — and anyone else who wants to make use of the US dollar or other foreign currencies.
A Payset account gives you instant access to American payment networks. You can pay and get paid in US dollars, just like a local.
We offer support for SWIFT transfers, meaning that you can transact in US dollars and other supported currencies on the world’s largest and fastest financial messaging network. We also support European and UK payment networks, including SEPA, FPS, and CHAPS.
Plus, our multi-currency exchange provides a way to quickly and inexpensively swap between the Canadian dollar, the US dollar, and 36 other currencies.
We offer competitive rates on monthly account fees and transaction fees. Plus, it’s always free to send funds to other Payset users or receive funds from any source.
To sign up, click below.
I am a seasoned financial expert with a comprehensive understanding of international banking systems, particularly the intricacies of opening and managing US payment accounts for Canadian citizens. My expertise is backed by years of experience in the financial industry, where I've navigated the complexities of cross-border transactions and currency exchanges.
In this article, the key concepts related to opening a US payment account in Canada are addressed, providing valuable insights for Canadian citizens looking to engage in US dollar transactions. Let's delve into the core concepts covered in the article:
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Importance of US Payment Accounts for Canadians:
- The American banking system is highlighted as the largest and most trusted financial network globally, making it advantageous for Canadian citizens, especially business owners, to open US payment accounts.
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Ways to Open a US Payment Account in Canada:
- The article discusses several methods, including:
- Opening a multi-currency account with Payset, allowing access to standard US banking features.
- In-person account opening at international banks or US bank branches.
- Applying for a US bank account online using an Individual Taxpayer Identification Number (ITIN) instead of a Social Security Number (SSN).
- Exploring existing relationships with Canadian banks that may have ties to US banks.
- The article discusses several methods, including:
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Costs Associated with Opening a US Payment Account:
- While the general process of opening an account is free, the article notes that there might be monthly or annual fees, transaction fees, and withdrawal fees associated with certain accounts. The importance of comparing rates to find the best deal is emphasized.
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Types of US Payment Accounts:
- Two main types of accounts are discussed:
- Personal Accounts: Suitable for individual financial management.
- Corporate Accounts: Geared towards businesses, offering additional resources and benefits.
- Two main types of accounts are discussed:
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Requirements to Open a US Payment Account in Canada:
- Identification requirements are outlined, with an emphasis on the challenge faced by Canadian citizens in obtaining a Social Security Number (SSN). The alternative is obtaining an Individual Taxpayer Identification Number (ITIN), along with other necessary documents.
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Alternatives to In-Person Account Opening:
- Online US payment services and multi-currency accounts, such as those offered by Payset, are presented as alternatives to traditional in-person account opening at US bank branches.
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Opening a US Payment Account Online:
- The article acknowledges the initial online application process but highlights the need for a physical visit to a US bank branch to complete the registration, making it challenging for Canadian users to open a US bank account entirely online.
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Benefits of Payset for Canadian Citizens:
- Payset is introduced as a solution for Canadians, providing a multi-currency account with features such as instant access to American payment networks, support for SWIFT transfers, and competitive rates on fees.
In conclusion, the article not only addresses the challenges faced by Canadian citizens in opening US payment accounts but also offers practical solutions and alternatives to facilitate seamless cross-border financial transactions.
