How Canadian businesses can avoid Stripe’s auto-conversion fee on USD payments

For Canadian businesses that invoice in USD, collecting payments through Stripe can come with an unexpected cost: automatic currency conversion.

By default, Stripe converts your USD payouts into CAD and charges a 2% currency conversion fee. Combine that with Stripe’s standard 2.9% + $0.30 transaction fee, and your total processing cost can exceed 5% of the invoice amount—before the funds even reach your account.

Over time, these quiet fees reduce your margins and impact cash flow—especially if you collect a significant portion of revenue in USD.

Why does Stripe auto-convert USD payouts to CAD

Stripe’s default setup does not hold USD payouts unless you’ve linked a USD-domiciled external account. Without one, every USD transaction is immediately converted to CAD at Stripe’s rate, and you're charged a 2% FX fee.

This means:

• You can’t control when your funds are converted
• You can’t choose a preferred rate
• And you can’t avoid the conversion fee

The result? Less control over how your USD revenue is handled, and more cost.

How Canadian businesses can receive Stripe payouts in USD

With Finofo, you can open a USD account domiciled in the U.S. and link it to Stripe. Once connected, Stripe will send USD payouts directly to your Finofo account—without converting them to CAD.

How to link your Finofo USD account to Stripe

• Go to your Stripe Dashboard → Settings → Business settings → External payout accounts and scheduling
• Add your Finofo USD account details

• Set your payout schedule to Automatic – every day

Once that’s done, your USD payments will be deposited into your Finofo account without any forced conversion or FX fees.

How Finofo improves cash flow for Canadian businesses

Avoiding Stripe’s 2% FX fee is just the beginning. With Finofo, your finance team can simplify global operations and gain full control over how and when funds move.

• ‍Choose when to convert USD to CAD: Convert your USD at a time that works best for your business. Finofo gives you real-time visibility into exchange rates, so you can optimize conversions and protect your margins.
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• Pay U.S. vendors directly via ACH: Use your USD balance to pay suppliers in the U.S. through local ACH transfers. This means faster payouts, no wire fees, and improved relationships with vendors.
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• Process hundreds of payments in one go: Instead of handling each transaction separately, group supplier bills together and send bulk payments in a single click. Approval workflows are built in, so payments stay fast and compliant.
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• Automate approval policies for compliance: Set up rule-based approvals to reduce manual follow-ups and enforce internal controls. Every transaction follows a clear path that supports SOX compliance and audit readiness.
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• Hold and manage 25+ global currencies: Receive payments in local currency from international customers without forced conversions. Finofo provides local account details, so you get paid like a local.
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• Get real-time visibility into your global treasury: See all your balances across currencies and entities in one place. Track inflows and outflows, make informed decisions, and manage liquidity more efficiently.

Stripe makes it simple. Finofo makes it smarter.

Stripe’s auto-conversion feature is convenient by design — but it isn’t always cost-efficient. For Canadian businesses invoicing in USD, losing 2% on every transaction adds up fast.

By connecting your Finofo USD account to Stripe, you don’t need to choose between convenience and control. You can keep your Stripe setup exactly the way it is, while unlocking smarter treasury capabilities and better margins with Finofo.

You’ll gain visibility, reduce fees, and simplify your payables and receivables — all from one unified platform.

Ready to take control of your USD payouts?

Start your free 21-day trial with Finofo today or book a demo to learn more.