How to Pay International Vendors & Employees from Canada | Best Methods & Tips

If you run a Canadian business that works with international vendors or hires remote employees abroad, you’ve probably realized that paying them isn’t as simple as sending an e-transfer.

Whether you’re importing from a supplier in the U.S., working with a freelance designer in Europe, or paying a small team in the U.K., the challenge is the same, how to send money overseas quickly, securely, and without losing unnecessary costs to currency conversion and bank fees.

Traditional methods like international wire transfers or PayPal often come with hidden FX markups, intermediary fees, and slow settlement times that can stretch to several days. On top of that, most Canadian financial institutions still rely heavily on the SWIFT network, which means businesses often pay high transfer fees even when sending funds to common destinations like the U.S.

That creates real friction for Canadian companies operating in a global market. Paying international vendors can erode margins, and paying employees abroad can make managing payroll and compliance unnecessarily complex.

The good news is that modern multi-currency business platforms are helping Canadian companies make global payments faster, more affordably, and with complete transparency. These tools give you access to local accounts in multiple currencies, allowing you to pay vendors and employees abroad as if you were based there, avoiding unnecessary fees and delays.

In this guide, we’ll explore the best methods for Canadians to pay international vendors and employees, compare their costs and speeds, and outline practical tips to simplify your global payments, all through a Canadian lens.

How International Payments Actually Work for Canadians

For Canadian businesses, sending money abroad isn’t as straightforward as it should be. Whether you’re paying a supplier in the U.S. or a contractor overseas, the underlying payment infrastructure adds friction, costs, and delays that most business owners never see.

Understanding how these transfers work, and where the hidden costs come from, is the first step to improving them.

Why It’s More Complicated in Canada

The main challenge comes down to payment rails, the networks that move money between accounts.

In Canada, most business payments move through the EFT (Electronic Funds Transfer) or Interac systems. These rails are excellent for domestic transfers, but they don’t connect directly to international systems like the U.S. ACH network or Europe’s SEPA network.

That means when you try to send a payment abroad, your financial institution usually routes it through SWIFT, the global wire network that links more than 10,000 banks. SWIFT is secure, but it’s also slow and expensive, often involving multiple correspondent institutions that each take a small cut along the way.

So even if you’re sending money from Canada to the U.S., two neighbouring countries, your “international payment” may pass through three or more banks before it lands.

The Hidden Cost: Foreign Exchange (FX) Markups

Every time you send or receive a payment in another currency, the provider applies an exchange rate. Most Canadian institutions don’t use the “mid-market rate” you’d find on Google, they add a markup (typically 2–3%) on top of it.

That markup is effectively an invisible fee, and for businesses with recurring international payments, it adds up fast.

For example, a $10,000 USD invoice paid from Canada with a 3% markup costs an extra $300 CAD,  before any wire or service fees.

This is one reason modern platforms emphasize transparent FX pricing, so businesses can see the true cost before sending a payment.

Why U.S. Businesses Have It Easier

If you’ve ever envied how easily U.S. companies can send “ACH transfers,” you’re not wrong.

The U.S. has a highly integrated domestic payment network that supports low-cost, same-day payments within its borders. Unfortunately, Canadian businesses can’t access that system directly from a Canadian bank account, even for U.S. transactions.

This is why many Canadian companies end up using workarounds: keeping a separate U.S. account, relying on PayPal, or accepting high wire fees just to pay in USD.

The problem isn’t your business, it’s the infrastructure gap between the Canadian and U.S. payment systems.

We'll cover an alternative method that allows Canadians business access ACH payments, unlocking huge cost and time savings for their organization.

The Shift Toward Multi-Currency Infrastructure

To close that gap, a new generation of platforms like Venn are introducing multi-currency accounts that bridge Canadian and global networks. These accounts let you:

• Hold multiple currencies (CAD, USD, GBP, EUR) in one place
• Send and receive funds through local payment rails (ACH, EFT, SEPA, etc.)
• Avoid unnecessary conversions and cross-border fees

This approach removes the old barriers that made paying international vendors slow and expensive, and it’s becoming the new standard for how globally connected Canadian businesses operate.

The real reason international payments feel complicated isn’t paperwork or regulation, it’s the outdated global payment infrastructure that Canadian businesses are forced to use.

Modern multi-currency solutions finally let you pay vendors abroad like a local, without losing money in the middle.

How to Pay International Vendors from Canada (and Keep Costs Down)

If your business works with international vendors, suppliers, or freelancers, you’ve likely discovered that sending payments abroad from Canada can feel harder than it should be. But it doesn’t have to be.

The key is understanding which payment methods make sense for your situation, and how to structure payments to minimize fees, improve speed, and strengthen vendor relationships.

The Real-World Challenge

Canadian businesses often face a frustrating trade-off:

• Traditional methods (like wire transfers) are secure but slow and expensive.
• Platform-based methods (like PayPal) are fast but come with hidden FX costs and poor integration.
• U.S.-based solutions don’t always work properly for Canadian entities because they rely on ACH, which Canadian accounts can’t send directly.

For many finance teams, this means juggling multiple systems, reconciling partial payments, or waiting days for suppliers to confirm receipt — all while margins shrink due to FX spreads.

Smarter Ways to Structure Vendor Payments

Instead of choosing between speed and cost, consider matching the payment method to the type and frequency of your vendor transactions:

‍

How to Reduce Friction and Cost

Here are the main levers Canadian businesses can control:

1. Pay in the vendor’s local currency.
If your supplier invoices in USD, GBP, or EUR, pay them directly in that currency. Avoid letting your bank do the conversion, that’s where most hidden FX markup occurs.

2. Use local rails where possible.
When you can send an ACH or SEPA payment instead of a SWIFT wire, you skip intermediaries entirely. The result: faster, cheaper transfers and fewer reconciliation headaches.

3. Consolidate payments through one platform.
Paying vendors in multiple currencies across different tools creates complexity. A multi-currency platform with built-in accounting integrations can batch payments and cut down manual steps.

How Venn Simplifies It

This is where Canadian businesses finally get a level playing field. Venn gives you access to local USD, CAD, GBP, and EUR accounts, so you can:

• Send and receive ACH payments to U.S. vendors like a local business
• Pay suppliers in 180 countries using 36 currencies
• Hold balances and convert only when rates are favourable (≈ 0.25 % FX margin)
• Automate vendor payables directly from QuickBooks or Xero
• Avoid inbound wire fees, since payments settle through local rails
• Send same-day EFTs within Canada and near-instant transfers after hours

The result: your vendors get paid faster, you save on FX, and your finance team finally gains visibility across every payment, all from a single Canadian platform.

How to Pay International Employees or Contractors from Canada

Hiring talent outside Canada opens access to specialized skills, lower costs, and 24-hour operations. But once you have global team members, a new challenge appears, how to pay them correctly and cost-effectively.

The payment method you choose depends on whether you’re dealing with a full-time employee or an independent contractor, since the compliance, tax, and reporting obligations differ.

Employees vs Contractors: Know the Difference

Employees

• Are part of your payroll and subject to deductions for income tax, CPP, and EI (if Canadian-based).
• When based abroad, paying them may require a local legal entity or employer-of-record (EOR) service to stay compliant with that country’s labour laws.
• Using an EOR provider such as Deel or Remote can handle compliance but usually adds per-employee monthly fees.

Independent Contractors

• Invoice you for services, usually without tax withholding.
• You simply pay their invoices in their preferred currency.
• Easier to manage for small teams or project-based work, but you must classify them correctly to avoid CRA or local tax issues.

(Tip: If you’re unsure, consult an accountant or EOR before setting up recurring international payrolls.)

Common Ways Canadians Pay Global Team Members

‍

How to Make Recurring Payments Efficiently

1. Standardize invoices and pay schedules.
Ask contractors to use the same invoice format and submission cycle, monthly or bi-weekly, to make reconciliation easier.

2. Batch recurring transfers.
Instead of sending dozens of individual wires, use a platform that allows bulk or scheduled payments.

3. Track FX exposure.
If you pay recurring USD or EUR invoices, hold balances in those currencies to avoid rate swings.

4. Automate approvals and accounting syncs.
Integrating payables directly with QuickBooks or Xero reduces manual data entry and errors.

How Venn Streamlines Global Team Payments

With Venn, Canadian businesses can manage vendor and payroll-style payments from one multi-currency platform:

• Pay contractors and employees in 36 currencies across 180 countries
• Hold local balances in USD, CAD, GBP, and EUR, avoiding conversion at payout
• Send funds over local rails (ACH, EFT, SEPA) instead of SWIFT for faster delivery
• Automate recurring or batch payments directly from accounting software
• Eliminate inbound wire fees and reduce FX to as low as 0.25 %

Whether you’re paying a U.S. developer or a design agency in London, funds arrive faster, in full, and with complete visibility.

Comparing Payment Methods for Vendors and Employees

Now that we’ve covered the key ways Canadians can send money abroad, it’s helpful to see how each option stacks up in terms of speed, cost, transparency, and suitability. The right method depends on how often you pay, who you’re paying, and whether you need compliance support for full-time employees.

The table below summarizes the strengths and limitations of the most common approaches.

‍

What This Means for Canadian Businesses

If your business only pays one or two overseas suppliers a year, a wire transfer may still work.
But for any company managing recurring vendor invoices or global team payments, the efficiency gains from a multi-currency account quickly outweigh the setup effort.

By combining local account access (for ACH, SEPA, and EFT) with transparent FX, platforms like Venn let Canadian companies operate globally without relying on traditional banks or multiple intermediaries.

Key Takeaway

Comparing methods side-by-side shows a clear pattern:
Traditional rails prioritize security but charge heavily for it; digital wallets prioritize speed but add hidden costs.
The middle ground, a true multi-currency business account, delivers both transparency and control, giving Canadian companies a cost-effective way to pay vendors and employees worldwide.

How to Avoid Hidden FX Fees and Transfer Delays

Foreign exchange (FX) fees and slow transfers are the two biggest pain points when paying international vendors or contractors. They eat into margins, create uncertainty for your recipients, and make it difficult to forecast cash flow accurately.

The good news? Once you understand where those fees come from, they’re surprisingly easy to avoid.

The Hidden Cost of “Free” Transfers

When your financial institution advertises “no wire fee” or “free transfers,” the cost doesn’t disappear, it’s just hidden in the exchange rate markup.

Let’s break that down:

• The mid-market rate (the rate you see on Google) is the true midpoint between global buy and sell prices.
• Most banks and legacy platforms add a markup of 2–3% when converting between currencies.
• That markup means a $10,000 USD payment can cost you $200–$300 CAD extra, even if the transfer fee itself is “free.”

In other words: the real fee isn’t on the invoice, it’s in the rate.

How Transfer Delays Actually Happen

International transfers don’t move directly from your account to your vendor’s, they pass through correspondent (intermediary) banks on the SWIFT network.

Each intermediary can:

• Charge a handling or processing fee
• Convert currencies mid-route at its own rate
• Add 1–3 extra business days to delivery

That’s why payments can arrive short of the full amount or take up to 5 business days, even when you pay a premium for a “priority” wire.

These aren’t isolated issues, they’re structural to how traditional cross-border payments work.

How to Spot and Reduce FX Fees

‍

The Smart FX Strategy for Canadian Businesses

For companies that pay global vendors or teams regularly, managing FX strategically can save thousands per year.
Here’s what that looks like in practice:

1. Hold funds in the currencies you use most.
Keep USD, GBP, and EUR balances so you can pay when rates are favourable — not when you’re forced to.

2. Time your conversions.
Convert larger amounts when the CAD is stronger to lock in better rates.

3. Use a platform that converts automatically at target rates.
Some platforms (like Venn) let you set rate alerts or automate conversions when your desired rate is met.

4. Avoid forced conversions.
If a supplier invoices you in USD, pay in USD directly instead of converting to CAD first — every conversion step adds hidden cost.

Key Takeaway

The biggest cost of international payments isn’t the visible fee, it’s the invisible spread and delay hidden behind it.

By using local rails and transparent FX, Canadian businesses can finally control their cross-border cash flow, and know exactly where every dollar goes.

Practical Tips for Managing Global Payments from Canada

Paying vendors, freelancers, or employees abroad doesn’t need to be complicated, but it does require a smarter system than traditional banking.

Here are seven proven strategies that help Canadian businesses cut costs, speed up delivery, and stay in control of every international transaction.

1. Pay in Local Currency

Whenever possible, pay your vendor or contractor in their home currency, not yours. When you send CAD for a USD invoice, the conversion happens on their end at an unknown rate, meaning they lose out, and you look unreliable.

Pro Tip: Hold balances in USD, GBP, or EUR and pay locally. You’ll avoid conversion markups and keep vendors happy with predictable payouts.

2. Avoid SWIFT When You Can

SWIFT transfers are reliable but outdated, they move through a chain of intermediary banks, each taking a fee and adding days of delay.

Whenever possible, send through local rails like ACH (U.S.), SEPA (Europe), or EFT (Canada). Local rails are faster, cheaper, and trackable from end to end.

Pro Tip: Venn connects directly to these networks, letting you send and receive like a local business in multiple regions.

3. Consolidate Payments into One Platform

Using multiple providers (PayPal for freelancers, your bank for wires, another for FX) creates reconciliation chaos. Each system has its own fees, timelines, and data formats which slows down your close and increases human error.

Pro Tip: Use one multi-currency platform that syncs directly with your accounting tools so payables, payroll, and reporting all live in the same system.

4. Time Your Currency Conversions

Exchange rates fluctuate daily. If you convert CAD to USD the same day every month, you might overpay simply because of timing.

Instead, watch the market or automate conversions when the CAD is strong. Over the course of a year, that timing difference alone can save thousands on recurring international payouts.

Pro Tip: Platforms like Venn let you set rate alerts or automate conversions once your desired rate is reached.

5. Automate Recurring or Bulk Payments

Manually processing 10–50 international payments each month wastes hours of finance time and increases the chance of input errors. Batch or recurring payments not only save time — they also ensure your vendors and contractors are paid consistently and on schedule.

Pro Tip: Venn lets you schedule or batch-pay invoices from QuickBooks or Xero in just a few clicks.

6. Track and Record FX Impact

If you regularly pay in multiple currencies, track your FX gains and losses as part of monthly reporting. This helps you forecast margins accurately and identify whether rate changes are quietly eroding profit.

Pro Tip: Most accounting platforms can automatically reconcile FX movements when payments and balances are synced through an integrated platform.

7. Eliminate Receiving Fees for Your Vendors

Nothing hurts relationships faster than your overseas vendor receiving less than invoiced due to inbound wire fees. These deductions typically happen when you send via SWIFT or convert currencies mid-route.

Pro Tip: Always pay from a local account in the vendor’s currency, for example, a U.S. ACH from your Venn USD account. That ensures they receive the full amount, every time.

Why Smarter Cross-Border Payments Start with Visibility

Paying vendors, freelancers, and employees across borders doesn’t have to mean unpredictable fees or week-long delays. The problem isn’t the people you’re paying, it’s the outdated systems sitting between Canadian businesses and the rest of the world.

Once you gain visibility into exchange rates, transfer paths, and timing, paying internationally becomes just as easy as sending an e-Transfer across town.

That’s what modern platforms like Venn were designed to deliver, complete control, faster payments, and total transparency for Canadian companies that do business globally.

Learn more about the Best Canadian Business Accounts for Global Payments in 2025

Start Simplifying Your Global Payments

With Venn, you can:

• Get local USD, CAD, GBP, and EUR accounts, no need for multiple banks
• Send and receive payments in 36 currencies across 180 countries
• Avoid hidden FX markups with ≈ 0.25 % transparent conversion
• Automate payables from QuickBooks or Xero
• Pay vendors and contractors faster than traditional wires, often same-day

Join the growing number of Canadian businesses moving beyond wires and workarounds. Experience the clarity, speed, and savings of multi-currency payments built for Canada.

👉 Get started with Venn today

Frequently Asked Questions About Paying International Vendors and Employees

1. What’s the best way for Canadians to pay international vendors?

The best method depends on how often you pay and where your vendors are based. For recurring payments, a multi-currency business account that supports local rails (ACH, SEPA, EFT) is typically the fastest and cheapest way.It avoids SWIFT fees, provides transparent FX rates, and lets vendors receive payments like local transfers.

2. Can I send ACH payments from Canada to the U.S.?

Traditional Canadian banks can’t send ACH payments directly because they’re not part of the U.S. ACH network. However, Venn gives Canadian businesses local USD account details, allowing you to send and receive ACH transfers just like a U.S.-based company.

3. How can I avoid hidden FX fees when paying abroad?

Check the exchange rate before sending a payment. If it’s not the mid-market rate, there’s a markup. Use a provider that clearly shows FX margins (like Venn’s ≈ 0.25 %) and lets you hold funds in multiple currencies to control when conversions happen.

4. What’s the difference between paying an employee and a contractor abroad?

Employees typically require local payroll compliance, while contractors invoice independently and handle their own taxes. If you’re paying freelancers or agencies, you can usually pay them directly via a multi-currency account. For full-time employees, consider an Employer of Record (EOR) or local entity setup.

5. How long do international transfers take from Canada?

SWIFT wires can take 3–5 business days, especially if multiple banks are involved. Local payments through ACH, SEPA, or EFT usually arrive within 1 business day — or even same-day for some currencies through Venn.

6. Can my vendors or contractors receive payments without paying fees?

Yes. If you pay from a local account in their currency, they won’t be charged inbound wire or conversion fees. That’s why paying through a multi-currency platform with local settlement is so effective, it eliminates those hidden deductions entirely.

7. Is Venn a bank?

No, Venn is a financial technology platform, not a bank. Your funds are safeguarded with regulated banking partners, meaning your money remains secure and always accessible.

‍