Cashing Canadian Bank Checks In The US

[Teddy B 17,251]

Hi All,

Wondering if anyone else has experienced this.

My wife and I have sent numerous checks drawn off our US account to her family members in Windsor as birthday and Christmas gifts over the last couple years. Everytime the checks are deposited into the recipients account and that persons account is credited the full amount of the check with no banking fees. No problems, everything goes smoothly.

This past week, my wife received a check from her Mother as a birthday gift, the first check we've received from Canada on our end. The check is drawn from her Mother's TD Bank Canada account. When I went to deposit it into our US account with our local bank, I was informed of a $7.50 transatction fee and also told that I would have to wait for 6 to 8 weeks for the check to clear and the amount of the check to be adjusted for the US/Canadian dollar exchange. I was also informed that their may be more fees acrued by TD Bank Canada for their processing of the check.

I spoke to my bank manager in detail about this and explained the differences between how the Canadian banks have handled our US checks compared to how his bank was handling the Canadian check. I'm not doubting what the local bank manager is telling me, but I'm curious to know if anyone else has run into this situation, and if so, what did they do? Does anyone know of another way of cashing the check without the fees?

Thanks

Edited May 17, 2013 by Teddy B

[RomaSkirsky 6]

To be honest I paid the fees. My last bank charged for any transaction that had a foreign participant. Although 7 USD is a lot more than I ever paid. I've heard most banks do this... the price of the charges vary depending on the bank I assume. I'm not sure of any other places.... sometimes a bank to bank money transfer can be cheaper... I started doing that for awhile because it was HSBC to HSBC, but either way there was still a charge. Hope you get a better answer than mine! Best of luck!

[newlyweds2010 208]

I have no experience with Canadian banks, but it works exactly the same way with Italian banks. You pay a commission to the US bank where you cash the check, and you may also have to pay an additional commission to the foreign bank issuing the check. Fair? Absolutely not, IMHO. But it is what it is.

[Teddy B 17,251]

I have no experience with Canadian banks, but it works exactly the same way with Italian banks. You pay a commission to the US bank where you cash the check, and you may also have to pay an additional commission to the foreign bank issuing the check. Fair? Absolutely not, IMHO. But it is what it is.

Lol Newlyweds, that's almost word for word what my bank manager told me.

I'm curious to know why there has never been a fee charged on the Canadian end, or a US/Canadian dollar exchange, it just seems strange that there woud be a fee in the US but none in Canada.

[newlyweds2010 208]

Lol, I have a future as a bank manager (no thank you!). I assume the Canadian bank does not charge because the account holder in Canada already pays some other periodic fees/commissions which include this service. Do not assume that they are doing this for free, they are not (this is probably also verbatim your bank manager). On the other hand, do not call the Canadian bank to complain as to why they did not withhold a commission: if you do they might, just to make their customer happy...

[Rob & Monika 87]

Do the US checks go through the exchange rate in Canada? You said they get deposited for the value of the check. If the USD is worth more, where does the money from the exchange rate go?

[Teddy B 17,251]

Do the US checks go through the exchange rate in Canada? You said they get deposited for the value of the check. If the USD is worth more, where does the money from the exchange rate go?

I am being told that they don't go through the exchange rate, which I thought was strange. I believe that in the last couple years, the Canadian dollar was higher than the US dollar.

We're going to Windsor in a week to visit my wife's family, I'm going to get more info on this because somethings not adding up.

[Rob & Monika 87]

The exchange rate has been pretty close to equal, never know which one is worth more on any given day. Currently at 1USD = 1.03CDN

Edited May 17, 2013 by Rob & Monika

[Flames9_RN 358]

Some can offer a good exchange rate, than hit you with fees. Others my not charge any fee, BUT give a less than stellar rate! If its for a large sum of $$$, it is best to check around! I had huge hassles depositing Cdn cheques into Wachovia back in 2005. 1 branch would put a hold on it, some stated they would only accept a Cdn cheque if it was over $200, it was crazy--and it was the same BANK outfit, just a different branch! Luckily I found a branch that had a good bank manager and a competent teller and would only take my cheques to her--if she was not their, I walked out--because everyone else would screw it up! Thats when I started using CustomHouse!! Just mailed my cheques back to my parents and they deposited the $$$ in my bank! But CH was bough tout by Western Union and I don't think they offer it as a free service anymore, and they exchange rate is not as good as it once was

And now 1 has other routes--TD and RBC, but I have never used them, so can't comment. But when you check the bank of Canada Exchange rate----I don't believe your going to get that rate--the banks are here to make $$$$$

[VeeNDee 44]

We had received some cheques as wedding gifts in Canadian funds. I had read about all the cheque cashing issues and was prepared to engage in a long conversation but surprisingly the local bank just took them all and deposited them without any fees or delays. As far as I know they just went with the current exchange rate too. It might have something to do with our account being with a credit union that is non profit but I am not sure. I was very relieved not to have to deal with that hassle!

[ricnally 258]

I have experienced difficulties with Canadian checks coming to the US for years--so much so that I just don't do it anymore. My USC fiance has had the same problems even at his Credit Union.

[hikergirl 277]

Is your local bank a TD as well? If it is try and call the cross-border banking number and see if the fee is a mistake.

If it’s not, you could check with the cross-border banking number to see if you can deposit Canadian cheques to the US account without fees and open up an account for the occasion and just use it as some sort of savings account.

http://www.tdcanadatrust.com/products-services/banking/cross-border-banking/index.jsp

Edited May 17, 2013 by hikergirl

[Ms Hogan 295]

Canada is happy to receive American money.

America doesn't want anything other than American money.

That's my explanation of it.

I have, for many MANY years dealt with this on a variety of levels. When I deposit a US cheQUE ( ) into my Canadian account I get whatever amount the exchange rate for that day deems it to be worth.

Whenever anything Canadian is deposited into a U.S. account it's a huge deal. My husband and I deal with this in our business on a regular basis too. Huge fees. Even traveling to Canada using his Visa Debit card from PNC. HUGE FEES. But my RBC US account, no fees on my Visa Debit card. So you can see which one we use now while traveling to Canada!

I would ask your family not to send cheques but to buy U.S. money order or bank draft instead if they're keen on sending you money.

It's a pain in the ####### but I don't see how it will change any time soon.

[thegordons2009 1]

I was able to deposit a canadian check into my American account without any fees or holds. I had the funds the next day like any other check.

I am in the state of PA. The check was from Ontario. Cant remember which bank in Canada. But on my end no issues.

[JensJrny2Ray 367]

When I lived in Canada, my fiance sent me a couple of cheques. My account was/is with Royal Bank and while they did it, they said that I should use some other method as they could hold it etc. I did get exchange rate on it, it was fairly negligible as the exchange rates were similar. Anyway, we stopped doing cheques and used our Paypal accounts and then I would just withdraw the amount to my bank account. We found that to be easy. Instead of a cheque, it might be easier for your relatives to send an international money order or to do the Paypal thing. With Paypal it doesn't cost them anything to send money.