Money is weird. You look at the mid-market rate on Google and see that 23 US to Canadian dollars should land you somewhere around $31 or $32 CAD, depending on the mood of the global economy that morning. But then you actually try to move that money. You open your banking app, or you walk into a kiosk at the airport, and suddenly that "fair" price vanishes. You're left with $28. Maybe $27 if the provider is particularly greedy.
Where did the rest go?
It’s the "coffee shop" conversion. People moving $23 USD aren't usually buying real estate in Vancouver; they’re paying back a friend for dinner, buying a digital game, or settling a small invoice. Because the amount is small, the percentage-based loss feels invisible, but it’s actually where banks make their easiest margins. If you aren't careful, you’re losing 5% to 10% of your value just by clicking "send."
The Math Behind 23 US to Canadian Dollars
Let's get the raw numbers out of the way. As of early 2026, the exchange rate has been hovering in a specific range. Generally, the Loonie (CAD) has been trading at roughly $0.72 to $0.75 USD. If we flip that, $1 USD gets you about $1.35 to $1.38 CAD.
So, simple math: $23 \times 1.37 = 31.51$.
But you will almost never see $31.51 in your Canadian account. Why? Because of the "spread." Banks buy currency at one price and sell it to you at another. That gap is their profit. For a small amount like 23 US to Canadian, a bank might charge a 3% spread. That's nearly a dollar gone before you even talk about wire fees or service charges.
Why the "Mid-Market" Rate is a Lie for Retail Customers
When you type "23 USD to CAD" into a search engine, you see the mid-market rate. This is the midpoint between the buy and sell prices of global currencies. It’s what big banks use to trade billions with each other. It is not what they give you.
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I’ve seen people get frustrated because they think they’re being scammed. Honestly? You kinda are, but it’s legal. It’s called a non-transparent fee. Most traditional banks in the US—think Chase or Wells Fargo—don't really want to deal with small-time currency exchange. They’d rather you just use your credit card and pay the 3% foreign transaction fee because it's less paperwork for them.
The Hidden Killers: Fees vs. Spreads
If you're moving 23 US to Canadian, the flat fee is your biggest enemy.
Imagine you use a traditional wire transfer. Your bank might charge a flat $25 fee to send money internationally. If you're sending $23, you are literally paying more in fees than the value of the transfer itself. It's absurd.
- The Spread: This is a percentage. Usually 2% to 5%. On $23, this is pennies.
- The Flat Fee: This is the killer. Anything over $5 makes a $23 transfer mathematically stupid.
- The Intermediary Fee: Sometimes, a third bank gets involved in the middle of the transfer and takes a "nibble." You sent $23, but only $18 arrives.
You've gotta look for "No-Fee" services, but remember: there is no such thing as a free lunch. If they don't charge a fee, they are just hiding it in a worse exchange rate. They'll tell you the rate is 1.30 when the real rate is 1.37. They still get their cut.
Practical Tools for Small Transfers
Since we're talking about a small amount like 23 US to Canadian, you need tools that specialize in "micro-remittance."
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Wise (formerly TransferWise) is usually the gold standard here. They use the real mid-market rate and just charge a small, transparent fee. For $23, the fee might be 40 cents. It's fair. You actually see exactly what the Canadian recipient gets.
Remitly or WorldRemit are also decent, especially if you're sending to a mobile wallet. They often have "new customer" deals where you get a killer rate on your first transfer. If you’re only doing this once, use that to your advantage.
Then there's PayPal. Oh, PayPal.
PayPal is convenient. Everyone has it. But PayPal’s internal exchange rates are notoriously bad. If you send 23 US to Canadian via PayPal, they might take a chunk of the conversion plus a fee if it's marked as "Goods and Services." You could easily end up losing $3-4 on a $23 transaction. That's a 15% haircut. Avoid it unless you’re in a rush.
The "Border Hopper" Reality
If you live in a border town like Buffalo or Detroit, you might be tempted to just walk across and use a physical exchange booth. For $23? Don't bother. The gas or the bridge toll will cost more than the savings.
However, if you happen to have a "cross-border" bank account—like those offered by TD Bank or RBC—you can often move money between your US and Canadian accounts for free. This is the "pro" move. These banks allow you to hold both currencies. You can wait until the CAD is particularly weak, then move your $23 USD over to get the maximum Loonie bang for your buck.
Is Now a Good Time to Convert?
The CAD is a "commodity currency." This basically means it lives and dies by the price of oil. When oil is expensive, the Canadian dollar gets stronger. When oil prices tank, the Canadian dollar usually follows.
If you're looking at 23 US to Canadian right now, check the energy news. If the global market is shaky, your US dollars are likely going to buy more Canadian ones. If the Canadian economy is booming, you might want to hold onto those greenbacks a little longer.
What to Avoid at All Costs
Whatever you do, do not go to an airport currency exchange desk.
I can't stress this enough. Airport kiosks (like Travelex) have the highest overhead in the industry. They have to pay for that expensive rent in the terminal. They will give you a rate that is borderline insulting. For $23 USD, they might give you $24 CAD when you should be getting $31. It is a convenience tax for people who didn't plan ahead.
Also, avoid using a standard US debit card at a Canadian ATM for a small withdrawal. You'll likely hit a $5 "out of network" fee from your bank, another $3-5 fee from the Canadian ATM owner, and a bad exchange rate. You'll spend $23 USD to get about $15 CAD in your hand.
Actionable Steps for Your $23 Transfer
If you need to move 23 US to Canadian dollars today, here is exactly how to do it without getting ripped off:
- Check the Benchmark: Go to a neutral site like XE.com or just Google "23 USD to CAD" to see the "true" value. This is your target.
- Compare Two Apps: Open Wise and then open Revolut or Remitly. Look at the "Final Amount Received" for the Canadian side. Don't look at the fees; look at the final number.
- Use a Travel Credit Card: If you are physically in Canada and trying to spend $23 USD, don't exchange the cash. Use a credit card with No Foreign Transaction Fees (like a Capital One Venture or a Chase Sapphire). The card network (Visa/Mastercard) gives a much better rate than any bank teller ever will.
- Avoid "Dynamic Currency Conversion": If a Canadian credit card machine asks if you want to pay in "USD" or "CAD," always choose CAD. If you choose USD, the merchant's bank chooses the exchange rate, and it is always terrible. Let your own bank handle the conversion.
Moving money across the 49th parallel shouldn't be a headache. Even with a small amount like $23, being smart about the platform you use ensures that the money stays in your pocket—or your friend's pocket—rather than padding the bottom line of a multi-billion dollar bank. Take the three minutes to compare rates. It's the easiest money you'll ever "earn."