Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

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Flashyfinancier
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Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by Flashyfinancier »

hi, im doing a lot of shopping online, from Ebay etc...and most of the time, the bill is in USD's. im trying to avoid those crazy 2.5% Paypal currency conversion fees. i already have a RBC bank account, based in Canada, which contains USD. is it possible to add this to my paypal sources? Paypal denied me when i tried to link it without giving me a reason but im sure it can be done.



any of you guys have a USD account from a canadian bank that works well with paypal?



thanks!
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big easy
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Re: Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by big easy »

I think it is part of Paypal or Ebay's business model to collect those 2.5% fx fees. I have a credit card which does not charge any Fx fee (Amazon visa from Chase), however when I have ordred on Ebay, they always convert from USD to CAD and charge 2%+.

I would be interested in knowing how to avoid this fee although I rarely use Ebay.
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Re: Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by deaddog »

I bank with BMO; They have a US dollar credit card with a $35 annual fee. The fee is waived if you spend $1000 annually.

I pay the credit card from a $US bank account that I fund from a $US brokerage account.

You can either use the credit card to buy online or PayPal accepts the credit card.
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Re: Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by Arby »

big easy wrote: 17 Nov 2017 10:28 I would be interested in knowing how to avoid this fee although I rarely use Ebay.
You can avoid the Paypal FX fee if you use a $US currency credit card. I used my $USD credit card from TD Canada Trust to buy an item from a US merchant via Paypal. There was no FX fee from Paypal. I paid the $USD credit card bill from my $USD bank account at TD Canada Trust.
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Re: Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by big easy »

Thanks Arby, will probably not get another cc though.
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Re: Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by pmj »

big easy wrote: 17 Nov 2017 10:28 I think it is part of Paypal or Ebay's business model to collect those 2.5% fx fees. I have a credit card which does not charge any Fx fee (Amazon visa from Chase), however when I have ordred on Ebay, they always convert from USD to CAD and charge 2%+.

I would be interested in knowing how to avoid this fee although I rarely use Ebay.
I use a 0% FX-fee card (Amazon or Rogers/Fido), select US$ payment direct from my credit card, not through my PayPal account, and reject (at least twice) PayPal's warnings that my final C$ cost is unknown (whilst helpfully quoting an exact C$ cost if I let PayPal convert for me). Last time I checked, the PayPal vig was close to 3.5% :shock:. 2.5% is the regular CC vig.
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big easy
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Re: Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by big easy »

Perfect thanks!!
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Re: Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by Flashyfinancier »

i think the trick is to link a credit card instead of a bank account.

i just got approved for a USD credit card today :thumbsup:

bye bye excessive forex fees :rofl: go scam someone else
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Re: Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by kcowan »

pmj wrote: 17 Nov 2017 19:07I use a 0% FX-fee card (Amazon or Rogers/Fido), select US$ payment direct from my credit card, not through my PayPal account, and reject (at least twice) PayPal's warnings that my final C$ cost is unknown (whilst helpfully quoting an exact C$ cost if I let PayPal convert for me). Last time I checked, the PayPal vig was close to 3.5% :shock:. 2.5% is the regular CC vig.
Yes there are two places, one at the point of sale and the other in the credit card itself. In my case, it is not USD but local currency (MNP).
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Re: Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by pmj »

Flashyfinancier wrote: 18 Nov 2017 01:21 i think the trick is to link a credit card instead of a bank account.

i just got approved for a USD credit card today
Linking a US$ credit card to a Canadian PP account might work, if it can be done.
Linking a C$ credit card won't work - if the payment is made through a PP account, the transaction will be converted by PP using PP's vig, whether the funds come from cash in the PP account, or from a linked bank account, or from a linked CC.
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Re: Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by Wing »

Flashyfinancier wrote: 18 Nov 2017 01:21 i think the trick is to link a credit card instead of a bank account.

i just got approved for a USD credit card today :thumbsup:

bye bye excessive forex fees :rofl: go scam someone else
How are you paying your USD credit bill from Canada?
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Re: Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by always_learning »

Because fx fees bug me too, I do exactly what deaddog does (above, Nov 17th). PayPal accepts the US$ credit card connected to my US$ chequing account at BMO/BMOIL.
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Re: Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by pmj »

The Q still remains - at least for most of us - how do those who use US$ CCs pay those bills from C$ assets?
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Re: Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by kenwood »

pmj wrote: 25 Dec 2017 20:19 The Q still remains - at least for most of us - how do those who use US$ CCs pay those bills from C$ assets?
The long and tedious way is to buy USD at a bank and pay your USD CC bill there.
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Re: Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by deaddog »

pmj wrote: 25 Dec 2017 20:19 The Q still remains - at least for most of us - how do those who use US$ CCs pay those bills from C$ assets?
Pay with US dollars from a US dollar account.

Fund the US dollar account from US dollar investment account. Either with dividends and capital gains from investing or buy interlisted stocks on the Canadian exchanges and sell on US exchanges.

For small amounts you could use Tangerine as the exchange rate is usually better than the Big 5.
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Re: Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by behappytoday »

I called PayPal and had a conversation with them on how do I avoid conversion if I transfer the PayPal USD funds between my USD bank account in Canada. I said that no conversion would be required as it is USD everywhere, and I don't want to be forced into a CAD conversion.
The PayPal told me that regardless if we deal only with USD, I will still have a conversion because my bank account is located in Canada.
They said no way for me to bypass that.
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Re: Paying with Paypal using a USD bank account from a canadian bank to avoid conversion fees

Post by long »

I use the Home Trust no-fx-fee Visa credit card. Yesterday I bought something - earrings for my granddaughters - quoted in USD on eBay.
To avoid eBay fx fee I chose (1) to pay from my credit card and (2) do not accept their conversion to CAD, instead to choose another option (by clicking on the corresponding field, can not remember exactly how it called). In result, the system said that rate will be determined "by your credit card", exactly what i need.
If I remember correctly, a similar option - to NOT use "their" rate - exists in PayPal as well.
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