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Canadian PayPal Users - How to Transfer from PayPal to Canadian USD account
PAGE 1 = Introduction (PayPal Issues for Canadians)
PAGE 2 = Royal Bank of Canada (RBC) Solution
PAGE 3 = RBC U.S. High Interest eSavings account
PAGE 4 = Linking PayPal to your new RBC US account: Step #1
PAGE 5 = PayPal + RBC: Step #2
PAGE 6 = PayPal + RBC: Step #3
PAGE 7 = PayPal + RBC: Step #4
PAGE 8 = PayPal + RBC: Step #5
PAGE 9 = PayPal + RBC: Step #6
PAGE 10 = Conclusion
In this training tutorial, I want to share an important piece of information for Canadian PayPal users (keep reading, it is worth it!).
To start off, when we receive commissions from WA, these commissions go to our individual PayPal accounts and in US dollars.
As I mentioned in my WA blog post, there are a couple of problems associated with the Canadians having a USD PayPal account:
1). The first issue is that PayPal's conversion rate is 2.5% every time they convert US dollars to Canadian dollars.
It may not be a big deal but it's $2.5 on every $100 that you earn, $25 on every $1000 that you earn and so forth.
And the bigger the income, therefore the higher will be the fee.
2). Second issue is that PayPal automatically converts USD to CAD, and there is no option to change that.
However, THERE IS ONE solution available! (I will get to that in a bit, don't worry!)
NEXT: Royal Bank of Canada (RBC) Solution
Does anyone have an updated method that still works? I am desperately trying to figure out how to transfer my USD from PayPal Canada to my account. What do I do? I've only tried the RBC USD eSavings method and wasn't able to get the 2 amounts deposited.
I tried this method a while ago and as far as I understand it still works. With a slight change though.
If you scroll down the comments, you'll see that one said he was trying to do the old way (when I originally published the tutorial) and here is what he said (@1mpunity):
"PayPal support had to manually enable the bank account because it's a non-transactional account they got an error when trying to do the 2 small debit transactions so they just manually confirmed it and it is now active on my account"
Then Carole (@OKNord) said the same:
"Just like 1mpunity, I had issues with PayPay. If PayPal goes ahead and send their 2 small deposits to an RBC US high interest savings account, the deposits will be rejected by RBC, knowing this is a NON-transactional account. Trust me, I tried that route.
After several failed attempts, I had to inform PayPal, RIGHT AWAY, to manually confirm my new RBC bank account, (and to NOT send their 2 small deposits to my account), knowing this RBC account is a NON-transactional account."
Does this clarify things for you?
A question though, your guide shows us that we have to put savings, my USD eSavings account is a Checking account.
On my first attempt, I put savings and had this issue with the deposits, but it at least got to the deposit stage. When I tried with Checking next, it said "A bank cannot be added at this time" or something.
Should I select Savings regardless of the fact that my account is a Checking account?
And I have a Bank of America account, is that a better bet? -this would be my worst-case scenario if it is, would be good to know though.
Try to follow exactly as the training says and as another Wealthy Affiliate member advised:
"Once people reach Zarina's Step #5 of her tutorial, which is 'Confirm your bank account with PayPal', it's better to call PayPal Support right away, so that PayPal can MANUALLY confirm your RBC bank account."
Then you can proceed to the next step.
Does this help Nadia?
(And please let us know here if it worked for you, so that other people who are looking into this will know that it still works in 2018!)
1. Call PayPal and ask to talk to a tech specialist as you have a tech problem with your bank account (or tech exchange rate specialist). A regular support rep will not be able to help, as they are trained to answer: ‘That cannot be done”…
2. Tell that tech specialist that you are trying to add an account for a better exchange rate option – tell them to enable it and with them on the phone click on that ADD button. It will work.
3. Once you get a confirmation – wait for micro deposits and verify the USD bank account. After – you will be able to withdraw USD cash into your RBC USD account. Please note that you should not try to use this link to deposit USD into your PayPal USD account (It should not work, it work only for withdrawals).
I did a quick research and came across the willbecoded website at: willbecoded. ca/link-canadian-usd-bank-to-paypal-account/
How come you haven't tried linking the American account yet? This way you should have the 2.5% conversion fee (but again, don't take my word for it, it's a guess).
Glad to be of help! Feel free to reach out to me if you have any questions about Wealthy Affiliate/affiliate marketing/blogging etc.
I'm around :)
So far, RBC is the only bank that would work with linking to PayPal. The reason is because RBC has a routing number for their branch based in New York.
And routing numbers are the ones that the US banks use (as opposed to transit numbers used by Canadian banks).
I suggest you give it a try (no need to open the checking account so that you don't pay the fees), and enjoy the benefit of receiving the full amount from PayPal.
My $49.95 were transferred to RBC US eSavings account without any fees on PayPal. And I can either leave my USD in the account, or withdraw with the RBC preferred currency exchange rate.
Hope this helps!
Zarina
What should I try without opening a checking account?
Sorry, didn't mean to confuse you.
What I meant is that if you want to avoid the Paypal 2.5% conversion rate every time you transfer your USD to a Canadian bank, then it is recommended to open the RBC U.S. eSavings account as I mentioned in the tutorial.
Personally, I don't recommend opening a checking account as well, as there are monthly fees associated with any Canadian bank when opening a checking account.
So, what I thought is that I would open a Canadian savings account as well (along with the US eSavings account), so that it gives me access to ONLINE banking. I do everything online - so online banking is super convenient for me.
Now, in terms of the full amount from PayPal - if you were to transfer from PayPal to any other bank, then you would be hit with conversion rate. When I opened my RBC US eSavings account, I transferred the full $49.95 that I had on PayPal, and it transferred the whole amount (I didn't see any fees on PayPal account). And then whenever I want I can exchange my USD for CAD with the banks preferred currency exchange rate.
I hope this helps!
Thank you,
Zarina
I wouldn't recommend a bank account with fees!
I know this is too much of a hassle and nobody likes the fees. Not to mention that no one would make a switch with the other bank with fees.
So, US eSavings account does not have the fee, HOWEVER, there is only 1 free monthly debit. Every debit exceeding the monthly debit will be $3 each. So just keep this in mind*
The Canadian savings account - I didn't plan on opening at first, but my RBC representative said that the Canadian Savings account also doesn't have any fees. I opened it just to have an online access and mobile banking. But it should be free of feels, have one free debit monthly and $2 for any debit exceeding monthly limit.
But since you already have BMO, I don't think you will be using the RBC savings account so you wouldn't worry about one only free debit monthly :)
When you set up an account - please be sure to follow the instructions of the tutorial step by step! Especially, when you are at the process of linking RBC account to PayPal account.
Hope this helps :)
Zarina
Just follow-up on you - were you able to open an account with RBC? Did this work for you?
Just was re-reading the comments here and wanted to say that you should start visualizing how your money comes to your account ;)
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Well, I am excited to meet fellow Canadians!! :)
By the way, nice to meet you and am following you now!
It is my absolute pleasure to help!
Thank you for stopping by :)
Zarina
Did you have success with setting up a link between RBC and PayPal to avoid the hefty 2.5% conversion rate??
If you have any new information - I would appreciate you sharing it here so that I add an update to this training :)
I am happy to hear it is useful information for you :)
If you know any other Canadian WA member, please spread a word!
There is not a single tutorial/blog post talking about Canadian PayPal users and conversion rates! So it will definitely be helpful to lots of Canadians.
Thanks for stopping by!
Zarina
Also I'm having issues with paypal not only am I being charged $56.11 but they for some reason have been taking out $76.00 will have to call them as its been going on for about 3 months and they are ignoring my emails have you had any issues?
To respond to your questions.
1). Yes, the price is higher in Canadian dollars because of the USD-CAD rate plus relevant fees with your bank may apply. In terms of US RBC to make payments - honestly that's a good question. I don't really know the answer though. I have annual membership, so I can't even experiment with making a payment from my new RBC US account.
I do remember though that we can move funds from PayPal to US RBC account (which is the purpose of this training), but we can't move the funds from RBC US account to PayPal. So it's a one-way street here for some reason. Not sure why. So I assume if you are making payments to WA through PayPal then it might be complicated to do through RBC US account.
As an alternative, you could just leave your commissions in PayPal account and just pay for your membership with these commissions (and not use any bank card that you use to make payments).
2). In terms of PayPal charging more - just about when this training was created, I talked to my friend who's a freelancer and receives her $ through PayPal. She also complained that for some reason, PayPal withdrew a lot of fees from her salary here and there without any particular reason (at least she didn't figure it out). And she also complained that they never responded to her emails so you might want to give them a call.
What I can recommend to you though is to call the French help line (1-855-477-1170) because I heard that the other normal help lines didn’t seem to be helpful for others so this is worth a shot. I am sure you will find anyone who speaks English there.
I hope this helps, Sandy!
P.S. When you figure things out for sure - do you mind getting back to me and say how things really are with regards to your concerns? It will be a valuable knowledge to me and to others who will read through the comments here - so it will be an additional help to them.
Is there anything else I can help you with, Sandy?