​Expanding your business into international markets can significantly enhance growth prospects, and the United States stands out as a premier destination. With a population of over 343.6 million people and a high purchasing power, the US market presents a lucrative prospect for Canadian businesses. 

However, entering the U.S. market requires a comprehensive understanding of its financial ecosystem, particularly regarding cross-border payment solutions. Managing transactions between Canada and the U.S. efficiently ensures seamless operations and customer satisfaction. Many cross-border payments rely on the SWIFT network for message exchange and payment instructions. While this system is widely used, it's essential to understand the US payment landscape and the challenges that come with collecting payments from US customers.

By leveraging appropriate cross-border payment solutions and understanding the intricacies of the U.S. payment landscape, Canadian businesses can position themselves for successful expansion into the American market.

Why should your business target US consumers?

The US market is one of the most dynamic and opportunity-rich consumer markets globally. Expanding into the United States offers significant potential for Canadian businesses looking to grow beyond their local reach.

Geographic proximity makes expansion easier

One of the main benefits of targeting US consumers is the close geographic and cultural connection between the two countries. This simplifies logistics, reduces time zones and communication barriers, and makes market entry more accessible. Expanding into the US opens the door to a large and diverse customer base that actively seeks out new and innovative products and services.

High spending power drives demand

US consumers tend to have strong purchasing habits and are willing to spend on both essential and premium goods. Whether you're offering physical products or services, tapping into this market can boost your visibility and revenue. It’s a chance to scale your brand and compete on a larger playing field.

Don’t overlook financial logistics

While expanding into the US comes with exciting opportunities, it also brings important financial considerations. Handling b2b international money transfers efficiently is essential for smooth business operations. Choosing solutions that simplify USD currency exchange can help you manage costs, reduce delays, and keep your cash flow running smoothly.

Challenges of collecting payments from US customers

Expanding into the US market can offer massive opportunities for Canadian businesses, but collecting payments from US-based customers presents its own unique challenges. These hurdles can affect cash flow, customer experience, and long-term profitability if not addressed properly.

No local presence creates friction

One of the primary challenges is the lack of a US presence. Many Canadian businesses face difficulties collecting payments from US customers because they don't have a physical presence in the country. This often creates complications when trying to open US-based bank accounts, which are typically required to process domestic payments efficiently. Without this setup, businesses may appear less credible to US customers and may face limitations when using popular domestic platforms.

Currency issues hurt profits

Dealing with cross-border payments also means handling multiple currencies. Accepting US dollars without the proper infrastructure can be tricky. International conversion fees can eat into your profits, making it less attractive to sell in the US market. Moreover, the volatility of exchange rates can make it harder to forecast revenues and manage budgets with confidence. Many businesses turn to cross-border payment solutions that offer more favourable exchange rates, faster processing, and integrated currency management tools to address this.

Platform rules cause delays

If you're selling through major platforms like Amazon, it's important to understand how Amazon seller payment methods work. Receiving payouts in USD can be complex without a US-based business entity or local bank account. Delays in fund transfers, additional currency conversion steps, and platform fees can all impact the speed and value of your payments. Some Canadian sellers use third-party services to streamline this process.

Payment tools simplify growth

Canadian businesses are increasingly adopting cross-border payment solutions tailored to international sales to navigate these challenges. These tools often provide features like multi-currency accounts, automated invoicing, transparent fee structures, and real-time exchange rate tracking. By streamlining how you receive and convert payments, you can improve cash flow and enhance your customers' buying experience.

Benefits of using virtual accounts for collecting US payments

Using virtual accounts based in the US offers several key advantages for Canadian businesses collecting payments from American customers. These accounts can play a critical role in your cross-border growth strategy, from cost savings to streamlined payment flows.

Save money by avoiding conversion fees

One of the biggest financial benefits of using a virtual US account is bypassing the typical 4–6% international conversion fees that marketplaces often charge when converting US dollars to Canadian dollars. This means more of your revenue stays with you, boosting your overall profit margin and making your pricing more competitive.

Collect USD directly from US marketplaces

Virtual accounts allow you to receive US dollars directly from platforms like Amazon and Shopify without requiring immediate conversion. This is especially helpful when managing Amazon seller payment methods, which often involve rigid payout structures. Using a virtual account gives you more control over how and when you convert your earnings.

Simplify the USD currency exchange process

Rather than relying on marketplace platforms or banks that may offer unfavourable exchange rates, virtual accounts let you choose when to convert your USD to CAD or other currencies. This allows you to monitor the market and get better value through competitive USD currency exchange services. It also supports better financial planning and cash flow management.

Make payments easier for your customers

Collecting payments in US dollars through a domestic virtual account reduces payment friction for your American customers. This improves their experience, increases trust in your business, and makes it easier to scale on US-based platforms. The smoother the payment process, the more likely customers are to return.

Eliminating FX conversion fees

One of the most impactful financial advantages of using virtual accounts domiciled in the US is eliminating costly foreign exchange (FX) conversion fees. When Canadian businesses receive payments in US dollars and rely on traditional banks to convert those funds into Canadian dollars, they often face steep conversion fees—sometimes as high as 4–6%. These hidden costs can quietly chip away at your margins and make selling in the US far less profitable than it should be.

Virtual accounts offer a smarter alternative, allowing you to collect and hold US dollars without triggering immediate conversion. This means you can convert funds only when the exchange rate is in your favour, using trusted FX providers offering competitive rates—often much better than banks.

An added benefit is the ability to open multi-currency accounts, which let you hold, manage, and send funds in multiple currencies from a single platform. These accounts are ideal for international businesses, allowing you to receive payments in USD, pay suppliers in EUR, and convert to CAD—all without unnecessary fees or delays. By consolidating your cross-border transactions, multi-currency accounts reduce complexity, improve cash flow visibility, and protect your profits from unfavourable currency swings.

MTFX: The best way to collect payments from the US

Overcoming the challenges of collecting payments from US customers doesn’t have to be complicated—especially with the right financial partner. One of the most efficient solutions for Canadian businesses is to use a virtual account domiciled in the US. With MTFX, you can open a US-based virtual account in your company’s name without needing a physical presence south of the border.

This virtual account allows you to collect US dollars directly from American customers and marketplaces like Amazon, Shopify, and other ecommerce platforms. That means faster payouts, fewer barriers, and a smoother customer experience. Most importantly, it eliminates unnecessary currency conversion at the point of collection. International conversion fees can eat into your profits, making it less attractive to sell in the US market.

Here’s how MTFX helps simplify US payment collection:

1. Set up a virtual US account in your company’s name quickly and easily.
2. Collect USD payments directly from platforms like Amazon and Shopify.
3. Eliminate the need for a physical US presence or US bank account.
4. Avoid high conversion costs with competitive USD currency exchange rates.
5. Gain faster access to your funds with reduced transfer delays.
6. Simplify b2b cross-border payments with tailored solutions for Canadian businesses.
7. Benefit from transparent pricing and no hidden fees.
8. Integrate seamlessly with your existing ecommerce or payment setup.

MTFX specializes in cross-border payment solutions that make it easier for Canadian businesses to operate—and grow—in the US market with confidence.

Successfully collecting payments from US customers

Expanding your business to the US market is an excellent opportunity for growth and increased revenue. However, collecting payments from US customers can be challenging without a physical US presence. By leveraging virtual accounts domiciled in the US, you can overcome these barriers and collect payments from US customers. With the help of MTFX, setting up a US account in your company name is quick, easy, and efficient, allowing you to tap into the lucrative US market. Don't let international conversion fees hold you back. Break the barriers and start collecting payments from US customers today.

Ready to simplify US payment collection and maximize your profits? Create an account on MTFX and start receiving your payments in US dollars. 

FAQs

1. What are virtual accounts, and how do they help collect US payments?

Virtual accounts are bank accounts domiciled in the US that let you receive payments in USD, helping you streamline collections and avoid costly currency conversions.

2. What are the benefits of using cross-border payment solutions?

Cross-border payment solutions offer faster transfers, lower fees, better exchange rates, and simplified international payment management, making it easier to do business globally.

3. How do b2b cross-border payments differ from consumer payments?

B2B cross-border payments often involve larger amounts, longer payment cycles, and specific compliance requirements. Using the right provider ensures smoother processing and better control over currency exchange.

4. How can I avoid high USD currency exchange fees?

You can avoid high USD currency exchange fees by holding funds in a virtual USD account and converting them using platforms that offer competitive exchange rates, like MTFX.

5. How to receive Amazon payouts in USD as a Canadian seller?

Set up a US-domiciled virtual account through a provider like MTFX and link it to your Amazon Seller Central account to receive payouts directly in USD.

6. What is the Amazon disbursement schedule, and how does it affect payments?

Amazon typically disburses funds every 14 days, though the timing may vary. Using a virtual account helps you access funds faster and avoid delays caused by currency conversion.

7. Are there specific Shopify payment gateways for non-US sellers?

Yes, non-US sellers can use Shopify-approved payment gateways that support international sellers. Pairing these with a virtual USD account helps streamline payouts.

8. How does a multi-currency account support USD transactions?

Multi-currency accounts allow you to hold and manage funds in multiple currencies, including USD, giving you more flexibility and control over when and how to convert.

9. How can I improve cash flow when selling to US customers?

Using virtual accounts, optimizing your USD currency exchange strategy, and automating collections with cross-border payment solutions can significantly improve cash flow.