Invoice entered in CAD, Supplier default currency is USD, Payment made in CAD, but invoice is reject

There is a US supplier setup with a default currency of USD. A Bank Account is assigned to the supplier.  An invoice has been entered for this supplier in the functional currency of CAD and a payment method of Check. When using a CAD bank account to render payment, the invoice is rejected with ' The Payee Bank Account is setup to allow domestic payments only. The internal bank account used to pay this document will result in an international payment to this payee bank account.'  Is this a bug? Or am I missing something here?

Thanks,

Sheryl