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Visa Joins TD Bank to Fuel Money Transfers Between US and Canada

Updated on Jan 24, 2020
TD Bank in the US

The traditional methods of sending money across borders have always been limited by various regulations and infrastructure resulting in high cost, high fees, and delayed delivery timelines.

In this ultra-connected digital world, every service is available at the click of a button. And new entrants into the cross border payment industry are challenging the status quo and changing the speed in adopting new technology and the delivery timelines, riding on new technologies namely: Artificial Intelligence, Machine Learning, and Blockchain technology.

This 2020, we are calling it the “Year of Challengers” for the cross-border payment industry. Visa, a global payment technology firm sees this as an opportunity with a vision to make sure that it becomes the best way to pay and be paid, for everyone everywhere including merchants and Financial Institutions.



Right partner at the right time

TD and Visa

Recently, Visa announced its partnership with TD Bank, N.A., a U.S. national bank that is located in Cherry Hill, New Jersey is a subsidiary of the Canadian-based Toronto-Dominion Bank. This Canadian multinational bank is commonly known as TD and operates as TD Bank Group.

This recent diversification of Visa with TD Bank and its multifarious subsidiaries (TD Bank Group), will allow TD's 26 million Canadian customers to transfer their money to Canada from their U.S. accounts at TD Bank.

TD Bank Group, which is the 5th largest bank in North America, has taken up the challenge to help Canadians with a new solution in moving their money between Canada and U.S. accounts quickly and easily. This new service, called TD Bank (U.S.) to TD (Canada) Transfer is powered by Visa Direct, which is a real-time payment delivery system allowing seamless transfer of funds directly to bank accounts using card credentials. It allows transfers of up to $5,000 daily in real-time from a U.S. based TD Bank to a Canadian-based TD Canada Trust account in 30 minutes or less. This service is only available for transferring money to yourself (me-to-me transactions) from a U.S. TD Bank to Canadian-based TD Canada Trust accounts.

In order to bring Visa Direct’s advantage to the world market, Visa is working with financial institutions, technology companies, and remittance players. The renewed vision of Visa is backed by the security, scale, and the quality of partners. In the cross-border payment industry, Visa has already partnered with both the leaders; like Western Union and MoneyGram and the new entrants; like Remitly and TransferWise. Visa’s collaboration with the remittance service providers also shows its efforts to help customers and small businesses to send and receive international payments quickly and securely.

History of successful partnership

Financial institutions, payments service providers and technology companies are already leveraging Visa Direct in moving money conveniently for consumers and businesses. As of now, the Visa Direct platform is available in more than 200 markets all around the world.

All financial institutions may have to circumvent Visa’s set of rules that allow its participation in their payment system, but considering TD bank’s historical merging of The Dominion Bank and Bank of Toronto, and its present operating networks working in a number of locations in financial centers around the globe namely; Canadian Retail, including TD Canada Trust, TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD Insurance and U.S. Retail including TD Bank, America's Most Convenient Bank, TD Auto Finance U.S., TD Wealth (U.S.), TD Ameritrade and TD Securities., Visa may be looking forward to a game-changer in their latest initiative as at the end of October 2019, TD had CDN$1.4 trillion in assets compared to Visa’s ever-growing net revenues from $20, 609 million to $22,977 million.

What did Visa say?

Frank Psoras, Senior Vice President, Everyday Banking at TD said that TD’s main aims are to provide customers with products and services that bring value and are user-friendly. Commenting on the recent partnership he added, "At TD, we're focused on providing our customers with products and services that are easy to use and deliver value. Today, we're ready to offer an even easier way for our customers to move money from their TD's the U.S. to Canadian bank accounts, presenting our commitment to omnichannel experiences that allow Canadians to get bank's service in the ways that work best for them.”

Brian Weiner, Vice President and Head of Product, Visa Canada said that the partnership is to empower Canadians to send, receive and get access to their money wherever, whenever and however they want. With this service, Canadians can enjoy more convenient ways to manage and move their money. This is a great opportunity for Visa cardholders as this partnership will enable them to enjoy the service as well. This move by TD also demonstrates their commitment to improving their customers’ experiences adapting to their changing preferences.

Bill Sheley, SVP and Global Head of Visa Direct, Visa stated that with regards to individuals and small businesses, there are still many challenges in moving money around the world. Technology might have brought us closer together but there are many more problems to be tackled in the payment industry. In today’s hyperconnected world, one would expect moving money for consumers and businesses to be seamless and instantaneous as texting. Around $80 trillion is still being sent with international wire transfers or banks which is an outdated system that is slow and expensive. In the coming years, digital money transfers will be the way forward.

Catching the Snowbirds

Visa's survey found that 36% of Canadian snowbirds are frustrated with financial matters like moving money between Canadian and U.S. accounts. The politically correct word for snowbird is a winter visitor. As many as 1.5 million Canadians snowbirds go for warmer climates during the winter season and as much as six million trips to the U.S. were taken by Canadians in the year 2019, according to the agency, Statistics Canada.

TD Bank also ranks among the world's leading online financial services firms with more than 13 million mobile users. Now, combine that with Canadian winters meaning nearly 1.5 million Canadians are estimated to head out west towards the warmer climates which will require cross-border services.

Visa and TD collaboration is a vital step and a necessary resolution to ease banking and financial services for not only the Canadian population but also for the incoming tourists from the U.S. This partnership model can also be adopted and initiated to many other cross-border travels and movements. This initiative will make the cross-border money transfer hassle-free for these vacationers. This convenient way of moving money is also a frequent need for customers working away from their home country. Compare the top money transfer companies for free on CompareRemit before sending money online.

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