Paypal Conversion Fees

Discussion in 'PayPal' started by 8everything, Apr 8, 2007.

  1. #1
    Is there anyways to transfer my USD funds to my bank account located in Canada? From all of the conversion fees (about $9 every $200 converted to Canadian dollars) is ... hefty.. especially over all of the fees recieving the funds.... is there an alternative to withdrawing money without needing to convert? Or a cheaper way to convert via paypal?
     
    8everything, Apr 8, 2007 IP
  2. eddy2099

    eddy2099 Peon

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    #2
    I would think that as long as there is a currency conversion, there would always be a problem. The only option may be to retain the US$ as US$.

    I usually just use the Paypal funds to pay for my US$ bills and keep it that way. What I need to convert to my local currency, I just take that as part of the cost of doing business for without which I would not be able to earn that source of income in the first place.

    The other option is to price your product and services in CAD$ and start a Canadian Dollar through the 'Manage Currency' link. Then set the default currency to Canadian Dollar and bill your customers in that currency. Once you get that done, you will not be subjected to the currency conversion fees as there is no conversion in the first place. Any currency exchanges fees would be bore by your customers instead of you.
     
    eddy2099, Apr 8, 2007 IP
    8everything and Zerosleep like this.
  3. 8everything

    8everything Peon

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    #3


    Oh very true! I should invoice in Canadian dollars instead, does this mean the client has to pay conversion fees?
     
    8everything, Apr 8, 2007 IP
  4. waikit86

    waikit86 Peon

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    #4
    I'm having the same problem, but I don't wanna change the currency to CAD$ because I'm having customers paying in US$.

    I'm planning to open an US account so that I can withdraw the US funds without needing to convert.
    RBC has a service called "RBC Access USA". It's a US banking account for Canadians. The service includes unlimited instant money transfers between your RBC account in Canada and your account in USA.
     
    waikit86, Apr 8, 2007 IP
  5. eddy2099

    eddy2099 Peon

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    #5
    Yes, that should be the case. You should be getting exactly as you billed in Canadian Dollars minus the standard fees for receiving payments.
     
    eddy2099, Apr 8, 2007 IP
  6. eddy2099

    eddy2099 Peon

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    #6
    Would withdrawing to a Canadian Bank account although dominated in US$ be first converted to Canadian Dollars and reconverted to US$ again and thereby causing you to incur double exchange fees.

    You might want to check with Paypal account that.
     
    eddy2099, Apr 8, 2007 IP
  7. 8everything

    8everything Peon

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    #7
    Thank you, I will talk to my provider about this!!

    Well true, I just convert it to Canadian dollars then withdraw it... But invoicing in CDN sounds best.
     
    8everything, Apr 8, 2007 IP
  8. eddy2099

    eddy2099 Peon

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    #8
    I am not sure how the banks work in Canada but here in Singapore, even if I have a US$ based bank account locally, I cannot deposit US$ to the account without them converting the money to S$ then back to US$ again.

    In the end, it did not make sense for me but it could just be the perculiar banking regulation here.
     
    eddy2099, Apr 8, 2007 IP
  9. 8everything

    8everything Peon

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    #9
    With paypal they said I had to convert it :( I do have a USD account here though but its not physically located in the states..
     
    8everything, Apr 8, 2007 IP
  10. waikit86

    waikit86 Peon

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    #10
    Withdrawing to a bank account in Canada has to convert the funds to CAD.

    RBC offers bank account located in the States. I don't think PayPal would ask us to convert the fund to CAD when withdrawing to a bank account located in the States.
    I haven't tried it yet, but I will go open an account by the end of this month and try it.
     
    waikit86, Apr 8, 2007 IP
  11. snapplekid13

    snapplekid13 Active Member

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    #11
    Receive a check from PayPal... won't your bank convert it for free? Or at least my bank did when I had a check in YEN. ( Im in the USA )
     
    snapplekid13, Apr 8, 2007 IP
  12. waikit86

    waikit86 Peon

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    #12
    PayPal sends check? I have never heard of it..may be it's only available to the USA users?
     
    waikit86, Apr 8, 2007 IP
  13. snapplekid13

    snapplekid13 Active Member

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    #13
    Costs $3 to send...
     
    snapplekid13, Apr 8, 2007 IP
  14. eddy2099

    eddy2099 Peon

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    #14
    Yes, Paypal sends checks to some countries and not all.

    If you deposit a check which is not in your currency, your bank will automatically convert it for you. The only problem is that you have no control over the exchange rates and your bank may tag on several percentage points as fees.
     
    eddy2099, Apr 8, 2007 IP
  15. sukantab

    sukantab Well-Known Member

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    #15
    Did you try any service like XOOM. Not sure if they transfer money to Canada. You might check. There is some coupon code available which allows to transfer money for free...
     
    sukantab, Apr 8, 2007 IP
  16. eddy2099

    eddy2099 Peon

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    #16
    Xoom is not supported in Canada.
     
    eddy2099, Apr 9, 2007 IP