Sending money to another country from Canada, also called a remittance, is a common way to support loved ones in another country, pay back loans there, or invest. Remittances can be sent through financial institutions or through third-party providers. There are four common ways to send remittances.

Digital account-to-account remittances move money internationally with lower fees than wire transfers. This type of remittance can be done from a smartphone, computer or tablet through online banking. It deposits the money directly into the recipient's bank account. This type of remittance can be sent through a financial institution or a third-party provider.

Cash pickup remittances move money with a remittance provider in Canada to a place or business in another country where it can be collected as cash. Cash pickup remittances cannot be larger than $5,000 and can only be funded by debit or credit cards, which may charge extra fees. The person receiving the money will also need to complete paperwork and present a government ID. These services are offered through third-party providers like Western Union and some financial institutions.

Money transfer apps are similar to cash pickup remittances, with similar restrictions. The major difference is that money transfer apps happen inside apps run by third-party providers. Not all apps are available for use in all countries.

Wire transfers are electronic remittances from one financial institution to another. You will need to visit a bank location to send a wire transfer. Wire transfers tend to be more expensive than other remittance types, but offer tracking that can confirm if your money arrived safely. They also offer the highest limits, making them a good option for large, infrequent transfers like buying a property.

What kind of remittance is right for me?

There are a few things you should consider when choosing what kind of remittance to use.

• Where am I sending the money? Some countries don’t accept some kinds of remittance. Check with your remittance provider to make sure your preferred remittance method works for your destination.
• Is the remittance method secure? Wire transfers or digital account-to-account bank transfers done through online banking offer bank-level security. Other options like cash pickup remittances or money transfer apps present more risk because third-party providers may not have the same security features in place.
• How can I know the money will reach the right person? If you want more confidence that your money is going to the right person, you should consider a remittance method that allows you to send a test transfer first. A test transfer will let you make sure the recipient's information is correct before you send the full amount. Note that not all kinds of remittance support test transfers. In Alberta, only ATB offers free test transfers for digital account-to-account remittances. If you want to track your funds and receive confirmation when they arrive, you should send a wire transfer.
• How much money are you sending? Most remittance methods have some sort of limit on the amount of money you can send in a single remittance or over a period of time. Financial institutions will often allow you to transfer more funds than a third-party provider would. Wire transfers have no limit.
• Does your recipient have a bank account? If the person you are sending money to does not have a bank account, you cannot send an account-to-account transfer. You will need to consider money transfer apps or account-to-cash transfers. If you use these services, make sure the remittance provider is reputable.

Whatever remittance method you use, the following tips will make your remittance more secure.

1. Be careful with sensitive information.

To send money abroad, you may need sensitive information, like the bank account number or debit card number of the person to whom you are sending money. If they share this information through social media or unencrypted email, it may be visible to hackers or financial criminals.

Keep sensitive information safe by only sharing it over the phone and with people you know and trust.