Move USD from PayPal to USD account in Canada

[ocgltd]

I have a large USD balance in my PayPal account, and I want to transfer it to my USD bank account, in Canada.  I don't want to move the money from USD -> CAD -> USD as I will incur significant exchange fees.

I've tried several times to add my Canadian USD account to PayPal but it refuses (says Canadian accounts must contain CAD).  I tried to add this as a US bank account but that didn't work either.

Help - how do I get my money out without all the exchange fees?

[sharpiemarker · Accepted solution]

@ocgltd 

Not possible. PayPal always convert to local currency when withdrawing. And it doesn't work even if you have a USD Canadian bank account. It will convert to CAD then back to USD when it reaches your USD account like you said so don't bother.

It is to your advantage to receive in CAD the value you want. IF you receive USD, keep USD in your Currency balance and spend it as USD. It's obvious PayPal is not the arena to try and game and gain on currencies.

[ocgltd]

Why is it to my advantage to convert it to CDN?  My business operates completely in USD, so may payables to suppliers are in USD.  (And few of them accept PayPal).  So my balance in USD is slowly growing with no way to remove it or use  (without exchange fees in and out of CDN).

I tried to open a bank account in the USA but without a US Social Security Number and business registered in that particular state I can't.  Wow....

[nrgcustomcables]

Two options:

1. Ask one of more of your suppliers to open a PayPal account - it's free and to their advantage

2. Get a US credit card through your bank (most banks offer one), and link it to your PayPal account.  Use that card for purchases from your suppliers, and use your PayPal balance to pay off the card.

Cheers!

[ColNas]

I have just run into the same problem. I opened a Money Pool to give my wedding guests an easier way to send gift funds. These were to be used for our upcoming honey moon. When I checked our balance I was surprised to see that it was in USD. I don’t recall ever being asked about currency, and I set the account up here in Canada... Anyways I thought this would be fine as we need USD for the honeymoon anyway. Until I tried to link my USD bank account. I find it ridiculous that Canadian banks have such a hard time working with USD. The accounting gymnastics required to move CND money into a registered USD stock trading account *within the same institution* are something to behold... Anyways I’m really annoyed that I can’t simply withdraw my USD and spend it as intended without paying 2X exchange fees. I’ll look into the credit card idea another user mentioned below, but I feel that this whole thing is absurd.

[ocgltd]

The recommendation about opening a USD bank account does NOT work.

PayPal will convert it to CDN upon send, and then if it goes into a USD account your bank will charge you another conversion fee.  So 2x fee

PayPal will send any money to Canadian residents in CAD, regardless of what type of account you have, where the bank is, etc.

And, PayPal's exchange rate is approx 2% worse that commercial bank rates.   So you would like lose 2% exch fee + 2% exch fee +2% bad exch rate.

This is pretty terrible, and PayPal knows it.

[agamat]

That’s not true. I do it all the time with RBC cross border accounts one in Canada and the other in US. No conversion ever. 100 USD from PayPal is sent to my RBC US based account. When it arrives I transfer it to my RBC Canada based account and 100 USD arrives in seconds. No conversion!

[Tuckercreek]

I see you posted that you can take your paypal account money in USD and deliver directly to your US account.  I have a cross border account as well with RBC so have a us bank account and a USD Visa - I also have my Canadian accounts.  I have tried but failed to add this US account (cross border RBC) to my Paypal accounts to receive money without doing a currency exchange - can you suggest or detail HOW you do this - step by step?

 Many thanks

T

[agamat]

I’m pasting here what I wrote in April. It’s pretty detailed. It worked for some people and it didn’t for others. I have a personal PayPal account and not business account. This may play a role if it works or not. Here it is: ‎Jan-17-2024 03:20 PM Hi, This is the solution to your problem: https://www.rbcbank.com/ if you have a regular bank account with RBC in Canada and click on GET A BUNDLE. You can also do it here: https://www.rbcroyalbank.com/usbanking/ I did it in December 2023 and it worked perfectly. All my USD from Paypal got into my USD RBC bank account in canada in USD without any converting or losing money for fees because of the special offer $0 for the first year ( $39.50 USD/year thereafter for the RBC Bank U.S. Direct Checking account with eStatements and U.S. Visa Signature Black credit card.) So, I'll just close the new account within the year. Then, I will wait until my Paypal account gets lots of USD again and I will apply for this type of the account again in about 2-3 years. Here is what I did, step by step: I already have a RBC account in Canada in CAD and in USD, so if you don't, you need to open these accounts with them first. I applied the US bank account in USA through this site https://www.rbcbank.com/ . I got accepted for the account and no annual fee U.S Credit Card (the special offer is for 2 - both are free) , so I got a new USD account in USA and with it, the 9-digit routing number which is the most important thing in order to link your account to pay pal usd account. I linked my USD RBC account in Canada to my new RBC USD account in USA. (here are the instructions from them how to do it: " To get started transferring money from your Canadian to U.S. accounts online, you’ll need to link your U.S. and Canadian RBC online banking profiles. It’s quick and easy: Sign-in to RBC Bank (U.S.) Online Banking (https://www.rbcbank.com/ Go to Profile & Preferences Click Link My U.S. and Canadian Online Banking Accounts and follow the simple on-screen instructions." But, this didn't work for me on the website because I didn't receive my new account number through email, so I had to call them to get it: [Removed. Phone #s not permitted]pan> When they accounts were linked: I signed in to my PayPal USD and clicked on: WALLET - LINK A BANK ACCOUNT- RBC ROYAL BANK - LINK YOUR BANK ANOTHER WAY - go to the bottom of the page ( !!! this is the KEY, so of course, this part is well hidden by Pay Pal at the bottom of the page) - click on LINK A U.S. BANK INSTEAD !!!) - write your 9-digit routing number for your new USD account in USD and your account number - click on AGREE AND LINK. Don't click on the option: Link a Canadian bank !!!! Paypal will make 2 very small deposits to your new USD account that you'll need to confirm. (It takes time! 5 days for me) , Then follow their instructions: Note the exact amounts we deposited. They'll be listed as deposits from PayPal. Log in to your PayPal account and click Confirm Bank Account - Enter the amounts we deposited. When Paypal account is linked to your new USD account, send the USD to it, it will take about 2-3 days (or you can pay some fees for faster transfer) Send the USD from the new USD account in USA to your regular USD account in Canada. No fees, no conversion. USD to USD. VOILÀ! I looked for the solution for a long time and nothing was ever clear enough, so I'm trying to be very precise to help others. Hope it helps! Good luck!

[PayPal_JonK]

Hello @ocgltd, @ColNas,

Welcome to our Community Forums! Transferring USD out of Canadian PayPal accounts can certainly be a bit confusing. I'll be happy to help out here.

You can transfer USD out of a Canadian PayPal account, you just have to make sure it's being transferred to a US bank account. You have the ability to add both Canadian and US bank accounts to your PayPal account.

Canadian bank accounts are added with an account, institution, and transit numbers. When withdrawing funds to a Canadian bank, the funds will be sent out as CAD, even if they are available as USD in your PayPal account. 

US bank accounts are added with an account and 9-digit routing number. When withdrawing funds to a US bank, the funds will be sent out as USD. 

I hope that clears it up!

 - Jon K