Trade with Canada: a practical guide to CHF/CAD payments
How to bring clarity to payment costs and greater certainty to CHF/CAD cash flows, whether you import from or export to Canada.
Practical guide
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Canada is Switzerland’s second-largest trading partner in the Americas. Its demand for advanced equipment and clean technologies creates concrete opportunities for Swiss industrial expertise. For companies trading between the two countries, payment methods and currency decisions have a direct impact on costs, profit margins and cash flow.
This guide explains how to pay Canadian suppliers, receive CAD payments from customers and protect your business from CHF/CAD movements. SwissFx supports trade in both directions with local account details, local and international payments and collections, and deliverable forward contracts.
Why trade with Canada?
Pharmaceuticals, agricultural products and watches are among Switzerland’s main exports to Canada. In the other direction, Switzerland imports precious metals, pharmaceuticals and machinery, according to the FDFA figures.
In Canada, Switzerland Global Enterprise identifies demand for sophisticated technology, sustainability solutions and industrial equipment. Its assessment of sector opportunities highlights investment in electric-vehicle and battery production, clean energy and hydrogen, with potential openings for Swiss manufacturing, cleantech, mining technology and engineering businesses.
Free trade since 2009
The EFTA–Canada agreement, in force since July 2009, gives most industrial goods duty-free market access and provides tariff concessions for some agricultural products. For Swiss exporters, this can lower customs costs and improve the competitiveness of eligible goods in Canada. The agreement also includes measures to simplify trade procedures. Preferential treatment depends on the product’s rules of origin.
CAD or CHF: who carries the FX exposure?
The invoice currency determines who needs to convert funds. For a Swiss business whose cash and reporting are mainly in Swiss francs (CHF), the two choices create different exposures.
Invoice currency | Swiss importer | Swiss exporter |
|---|---|---|
CAD | Must obtain CAD, unless it already holds a usable balance. The CHF cost can change until conversion or a rate is agreed. | Receives CAD. The CHF value can change until the funds are converted or used against CAD costs. |
CHF | Pays an agreed CHF amount. The Canadian supplier may need to convert and reflect its FX costs or uncertainty in the quotation. | Agrees revenue in CHF. The Canadian customer must obtain CHF and may consider its conversion cost when negotiating the price. |
A CHF quotation can be convenient for the Swiss buyer, while a CAD quotation can make the supplier’s local-currency price easier to compare. What needs your attention is the commercial price plus the full conversion and payment cost. Neither currency is automatically the better choice.
How can a Swiss business pay a Canadian supplier?
A CAD invoice can be settled through Canadian domestic payment rails or through an international bank transfer. Both deliver Canadian dollars, but the route can affect charges, timing and the amount credited. See our comparison of payment routes for the differences in costs, timing and banking arrangements.
Paying locally in CAD
A local CAD payment reaches the supplier through Canada’s domestic banking system. With a SwissFx multi-currency account, a Swiss buyer can convert CHF into CAD or use an existing CAD balance, then send the payment through local payments. The supplier receives CAD without having to convert Swiss francs.
This route may reduce intermediary charges and processing time, and provide clearer visibility over the amount received. The beneficiary bank and payment details must be eligible for the supported Canadian payment rail; timing and applicable charges depend on the transaction.
Paying CAD internationally
An international CAD transfer uses cross-border banking arrangements to credit the supplier’s account, sometimes through intermediary banks. SwissFx also supports this route within its currency capabilities.
Sending, intermediary or receiving-bank charges may apply and affect the amount credited. Confirm the beneficiary bank’s international CAD instructions and expected timing before choosing the route.
Our take: Paying in CAD does not guarantee a lower total cost. Compare the supplier’s CAD and CHF quotations on the same basis, including conversion costs, payment charges and the amount expected to reach the supplier.
Payments agreed in USD?
If your commercial agreement uses USD, see our USD account checklist for the payment, collection and conversion questions to review.
How can Swiss exporters receive payments from Canada?
With local CAD account details linked to a multi-currency account, Swiss exporters can receive payments through Canada’s local banking system without opening a separate Canadian bank account. SwissFx supports both local and international CAD collections. Receiving payments locally may reduce the intermediary charges associated with an international transfer. For international receipts, check which bank charges may apply and whether they could reduce the amount received. Our guide to local account details explains how local collections work.
Once funds have cleared, the company can convert them into CHF, keep a CAD balance for a planned conversion or use them for CAD supplier payments. The choice depends on cash needs and expected expenses. Retaining CAD also leaves any balance intended for CHF conversion exposed to exchange-rate movements.
Example: CAD 200,000 in receipts and CAD 80,000 in supplier payments
Consider a hypothetical Swiss watch business that sells to Canadian customers and buys components from a Canadian supplier. It expects to collect CAD 200,000 next month and pay its supplier CAD 80,000 four weeks after that receipt.
The company collects the customer payments through its local CAD account details. It retains CAD 80,000 for the supplier and can consider converting the remaining CAD 120,000 into CHF.
Using the receipts for the supplier payment avoids converting that CAD 80,000 into CHF and later buying CAD again. This is a form of natural hedging: receipts and costs in the same currency offset part of the business’s exposure. The CAD 120,000 intended for CHF conversion still needs a conversion decision.
Illustrative example. Payment charges and FX costs are excluded; the example does not calculate a monetary saving.
What if the supplier must be paid first?
If the supplier’s CAD 80,000 falls due before the customers pay, the company still has to source CAD: use an existing balance, convert CHF or arrange funding. Our guide to supplier credit explains the working-capital gap between paying suppliers and being paid by customers.
How can businesses manage the remaining CHF/CAD exposure?
The Bank of Canada records an annual average of CAD 1.3713 per CHF in 2021 and CAD 1.6846 in 2025. One franc bought more Canadian dollars in the later year, illustrating the CAD’s weakening against CHF over that period.
A weaker CAD reduces the CHF value of an exporter’s CAD revenue. It can lower the CHF cost of an importer’s CAD purchase, while a reversal can increase that cost. Our guide on reviewing FX exposure explains when future payments and receipts deserve closer attention. The practical question is how much movement in the CHF cost or value of those flows the business is willing to absorb.
Convert at the current rate
A spot conversion uses the rate available for settlement at or close to the current date. SwissFx’s currency exchange service can support an immediate supplier requirement or conversion of funds already received.
Hold CAD for planned expenses
Holding CAD can help a company meet recurring CAD costs without repeated conversions. The balance should be linked to identifiable payment needs and dates.
Fix a rate for a defined future conversion
A deliverable forward fixes an exchange rate for a currency transaction on an agreed future date or period. SwissFx offers CAD deliverable forwards for buying and selling as part of its FX risk management services, subject to eligibility and agreed terms.
Good to know: A forward provides rate certainty but remains binding even if the market later moves in the company’s favour. If a customer receipt is delayed, the forward obligation remains subject to its agreed terms. The amount and timing should therefore reflect the underlying commercial transaction.
What should businesses compare before choosing a CAD payment setup?
Bring the commercial terms, payment arrangements and currency decisions into one view. A low transfer fee alone does not show the total cost or the FX exposure that remains.
Commercial terms | Payments and collections | Timing and FX |
|---|---|---|
Compare CAD and CHF prices, including any FX buffer in the quotation. Agree the invoice currency and payment schedule. | Identify each conversion and any payment or bank charges. Confirm account details, payment rails and the amount expected to be credited. | Match usable CAD receipts and costs by date. Assess cash availability and the exposure remaining after those offsets. |
An FX audit can bring these elements together, helping your business see where costs arise and which future CAD amounts need a conversion or risk-management decision.
Frequently asked questions
Do I need to open a Canadian bank account to receive customer payments?
Getting started is simple. Fill out our contact form and our team will get in touch to understand your needs and explain how SwissFx works.
Is paying a Canadian supplier in CAD always cheaper?
Getting started is simple. Fill out our contact form and our team will get in touch to understand your needs and explain how SwissFx works.
Can I secure an exchange rate for a future CAD payment or receipt?
Getting started is simple. Fill out our contact form and our team will get in touch to understand your needs and explain how SwissFx works.
This article is for general educational purposes only and does not constitute financial advice. Currency and payment capabilities depend on the transaction and applicable requirements. FX risk-management products are subject to eligibility, availability and the underlying commercial exposure.
Does your business trade with Canada?
SwissFx can help you review how you pay Canadian suppliers, collect CAD revenue and manage CHF/CAD conversions. Discuss your payment flows and future currency requirements with our team.