How to Open a USD Business Account as a Canadian Company

If your Canadian business invoices US clients, pays US vendors, or receives USD payments, you're losing money every time a transaction crosses the foreign exchange desk. The solution is a dedicated USD business account — but most Canadian business owners don't know they have more options than just their existing bank.

This guide covers everything you need to know: what a USD business account actually does, your options in 2025, real cost comparisons, and how to open one.

Why You Need a Dedicated USD Account

Here's what happens without one: a US client pays you in USD, your Canadian bank receives it, converts it to CAD at their internal exchange rate (typically 1–3% worse than the mid-market rate), and credits your account. You then pay a US vendor, the bank converts CAD back to USD, charging another 1–3%.

On a $200,000/year cross-border business, you could be losing $4,000–$12,000 annually in unnecessary FX conversions. A USD account holds your USD funds in USD, eliminating conversion until you actually need Canadian dollars.

The second benefit: US clients prefer paying to a US-style account. Receiving payments via ACH to a US account is faster and simpler than wire transfers to Canadian accounts.

Your Options in 2025

Option 1: Canadian Bank USD Accounts (RBC, TD, Scotiabank, CIBC, BMO)

All major Canadian banks offer USD business chequing accounts. These are the most familiar option and have the benefit of being consolidated with your existing banking relationship.

Pros:

Easy to open if you're an existing business customer
CDIC-insured funds (up to $100,000 CAD equivalent)
Branch access for deposits and cash
Familiar online banking interface

Cons:

Monthly fees: typically $10–$30/month
Transaction fees: $1–$3 per transaction
Exchange rates when moving USD to CAD are still unfavorable (bank markup 1.5–2%)
US ACH transfers may not be natively supported (some banks treat them as wires)

RBC specifically offers a USD Business Account that integrates with their cross-border banking services. If you have significant US operations, their Premium US Banking Bundle can be worth exploring.

Best for: Businesses with moderate USD volume who want simplicity and are already banking with a major Canadian bank.

Option 2: Wise Business (formerly TransferWise)

Wise Business gives you a real USD bank account with a US routing number and account number — meaning you receive ACH payments just like a US business. You can also hold USD and convert only when needed at their near-mid-market rates.

The real advantage: Wise converts at rates that are typically 1–2% better than Canadian bank FX rates. On $20,000/month in conversions, that's $2,400–$4,800/year saved.

Costs:

Account opening: Free
Incoming USD wires: $4.14 per transfer
Incoming USD ACH: Free
Converting USD to CAD: 0.35–0.8% depending on currency pair
Monthly fee: None for basic; Wise Business Plus starts at $31 CAD/month

Limitations: Not CDIC-insured. No physical branch. Some US payment processors don't accept Wise routing numbers (Stripe works; some older systems don't).

Best for: Businesses regularly converting CAD↔USD who want the best exchange rates.

Option 3: Mercury (US Fintech — Canadian Businesses Can Apply)

Mercury is a US-based business banking platform that Canadian corporations can open accounts with. You get a full US bank account (with FDIC insurance), an American routing number, and a US-style banking experience.

Requirements for Canadian businesses:

Incorporated federally or provincially in Canada
EIN (US Employer Identification Number) — you need to get one from the IRS
US business address (can use a registered agent service)
You must be a controlling officer of the company

Getting an EIN is straightforward for Canadian companies: file IRS Form SS-4, which can be done by fax or phone. It takes 5–7 business days.

Costs:

Monthly fee: $0
No minimum balance
ACH transfers: Free
Wire transfers: $5 outgoing

Best for: Canadian businesses with heavy US operations who want a full US banking experience.

Option 4: Relay (US — Canadian-Friendly)

Relay is another US business banking platform with a strong track record of accepting Canadian businesses. Similar to Mercury in features, with some operators preferring the interface or their multi-user access features.

Costs: No monthly fees, free ACH, $5 outgoing wires.

Best for: Businesses that want US banking with strong team access controls.

What Documents You'll Need

The required documents vary by provider, but you'll generally need:

For Canadian bank USD accounts:

Business registration documents (Certificate of Incorporation)
Business Number (BN) from CRA
Government ID for all signing authorities
Initial deposit (varies by bank)

For US fintech accounts (Mercury, Relay):

Certificate of Incorporation
EIN (from IRS)
Government ID for officers
Proof of US business activity (invoices, contracts, US client communications)
US business address (registered agent is acceptable)

Getting a US address is simpler than it sounds. Services like Northwest Registered Agent ($125/year), Registered Agents Inc., or even a US PO Box work for this purpose.

How to Get a US EIN as a Canadian Business

This is the step that stops most Canadian business owners. It's actually straightforward:

Download IRS Form SS-4 (Application for Employer Identification Number)
Fill out the form as a foreign entity
Fax the completed form to: +1 267-941-1099 (international)
Or call the IRS international line at +1 267-941-1099 during US business hours to apply by phone (faster)
Receive your EIN by fax within 5–7 business days

Alternatively, a US-based accountant or registered agent can get you an EIN in a day for $150–$300.

Cost Comparison: $100K USD/Year in Transactions

| Provider | Monthly Fee | FX Rate Loss | Annual Cost | |----------|-------------|--------------|-------------| | Canadian Bank USD Account | $240/year | ~1.5–2% on $50K conversions | ~$990–$1,240 | | Wise Business | $0 | ~0.5% on $50K conversions | ~$250 | | Mercury/Relay | $0 | $0 (hold USD natively) | ~$60 in wire fees |

The "hold USD natively" option (Mercury/Relay) is the most cost-effective for businesses that primarily pay USD expenses from USD revenue. You're only converting what you need in CAD.

Tax Implications

Holding USD in a Canadian corporate account creates foreign exchange gains and losses that need to be reported to CRA. Every time you convert USD to CAD (or vice versa), you're creating a taxable event based on the exchange rate differential.

Practical advice: Talk to your accountant about how to track FX transactions. QuickBooks and FreshBooks both have multi-currency features that automate most of this. The administrative burden is manageable and well worth the cost savings.

The Recommendation

For most Canadian businesses with regular USD activity, the optimal setup is:

One USD account at your Canadian bank — for familiarity and integrated transfers
One account with Wise or Mercury — for receiving US client payments via ACH and holding USD efficiently

This dual-account approach gives you the flexibility of native US banking for incoming payments while keeping your primary banking relationship intact.

Explore more banking options for Canadian businesses in our banking guide.