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  • Feb 15th, 2019 8:32 am
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[OP]
Sr. Member
Mar 13, 2009
515 posts
59 upvotes
Thornhill
Jon Lai wrote:
Feb 10th, 2019 6:38 pm
Not sure how your website works, but when I did e-commerce, customers can select the currency to view products in. All currencies other than Canadian dollars are automatically converted based on that day's spot price, and the shopping cart has a disclaimer saying that you will be charged in CAD, and that the listed prices in their local currency is for reference only. When they check out, Paypal will detect their local currency based on their account profile, and show them the equivalent of the CAD in their local currency.

How are your customers paying you? Are you billing them, or do you have an online checkout? If you're billing their account directly, bill them in CAD. They will be presented an option to pay their local currency equivalent automatically, just like if you were buying something on eBay from a US seller.
It is subscription based service, customers sign up for recurring payments. I need to select the currency when I set up the subscription button.
[OP]
Sr. Member
Mar 13, 2009
515 posts
59 upvotes
Thornhill
habsfan9 wrote:
Feb 7th, 2019 10:09 am
I just transferred USD from my PayPal "Canada" account and there were NO FEES involved during the transfer to my CitizensBank US account.

That extra 0.8% foreign card transaction fee is annoying though.
Is it easy to transfer money from US account to Canadian account? No fees involved?

And when you transfer from USD bank account to CAD bank account, what is a typical currency conversion fee?
Deal Expert
May 30, 2005
41251 posts
2435 upvotes
Richmond Hill
ak1004 wrote:
Feb 10th, 2019 10:14 pm
It is subscription based service, customers sign up for recurring payments. I need to select the currency when I set up the subscription button.
So I don't see why you can't select CAD. Customers will just pay their local currency equivalent.
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[OP]
Sr. Member
Mar 13, 2009
515 posts
59 upvotes
Thornhill
Jon Lai wrote:
Feb 10th, 2019 11:13 pm
So I don't see why you can't select CAD. Customers will just pay their local currency equivalent.
It's an industry standard to present prices in USD. Nobody in our industry presents prices in currency other than USD.
Deal Guru
Aug 2, 2010
13218 posts
3418 upvotes
Here 'n There
ak1004 wrote:
Feb 12th, 2019 3:53 pm
Just found this - https://medium.com/swlh/how-to-avoid-pa ... 456277d9fe

Would it work? Does PayPal allow to add Transferwise as a bank account? Looks like a very cheap and convenient solution.
Funny you are still on here given you keep saying RFD is useless. LFMAO

FYI, insane to pay Transferwise fees to convert currency when you can get the bank spot rate and save that fee using my method. However, you like spoon-fed more expensive solutions so that should suit you well!
[OP]
Sr. Member
Mar 13, 2009
515 posts
59 upvotes
Thornhill
eonibm wrote:
Feb 13th, 2019 12:07 am
Funny you are still on here given you keep saying RFD is useless. LFMAO

FYI, insane to pay Transferwise fees to convert currency when you can get the bank spot rate and save that fee using my method. However, you like spoon-fed more expensive solutions so that should suit you well!
Transferwise fee is less than 0.5%. Definitely better than paying 2.8% to PayPal.

Regarding your method - I spoke to my accountant, and he did not recommend opening US bank account. Some of his clients did it, it worked fine for some time, but at some point they became targets for IRS. IRS now targets people who get income in US banks to pay taxes in the US.

So yes, I prefer paying 0.5% to Transferwise than taking that risk.
Deal Guru
Aug 2, 2010
13218 posts
3418 upvotes
Here 'n There
ak1004 wrote:
Feb 13th, 2019 8:34 am
Transferwise fee is less than 0.5%. Definitely better than paying 2.8% to PayPal.

Regarding your method - I spoke to my accountant, and he did not recommend opening US bank account. Some of his clients did it, it worked fine for some time, but at some point they became targets for IRS. IRS now targets people who get income in US banks to pay taxes in the US.

So yes, I prefer paying 0.5% to Transferwise than taking that risk.
Your 'accountant' has no clue at all what they are talking about. Only a $5/hr bookkeeper would come up with that response. There are no taxes to pay. I and many of my associates who also have US bank accounts for business for many years have never been targeted by the IRS. Also, your 'accountant' is woefully unaware that you have to have nexus in the US for that to happen and many companies that simply accept US dollars do not have nexus. Furthermore, the test is not what currency you get paid in to have nexus and therefore be required to file a US tax return but whether you meet the tests for nexus. So even if you accept payments in CAD you could have nexus. Finally, your accountant is pathetically unaware that because of the US-Canada tax treaty all you need to is file the return. There are no taxes to pay.

So, um, 0.5% of just even $1M in sales is $5,000 USD. I do multiples of that in business every year. Better in my pocket that someone else's. This is RFD in case you didn't notice.

Sheesh! So much misinformation on here it boggles the mind. You need to stop spreading it or educate yourself before you chirp.
[OP]
Sr. Member
Mar 13, 2009
515 posts
59 upvotes
Thornhill
eonibm wrote:
Feb 13th, 2019 5:32 pm
Your 'accountant' has no clue at all what they are talking about. Only a $5/hr bookkeeper would come up with that response. There are no taxes to pay. I and many of my associates who also have US bank accounts for business for many years have never been targeted by the IRS. Also, your 'accountant' is woefully unaware that you have to have nexus in the US for that to happen and many companies that simply accept US dollars do not have nexus. Furthermore, the test is not what currency you get paid in to have nexus and therefore be required to file a US tax return but whether you meet the tests for nexus. So even if you accept payments in CAD you could have nexus. Finally, your accountant is pathetically unaware that because of the US-Canada tax treaty all you need to is file the return. There are no taxes to pay.

So, um, 0.5% of just even $1M in sales is $5,000 USD. I do multiples of that in business every year. Better in my pocket that someone else's. This is RFD in case you didn't notice.

Sheesh! So much misinformation on here it boggles the mind. You need to stop spreading it or educate yourself before you chirp.
Trust me, my accountant already forgot what you don't know.

This is a real experience from real clients. What worked great till couple years ago might not work anymore. You might do okay - till you don't. And when you become a person of interest for IRS, it will cost you much more than $5,000. Even if at the end you just file the tax return in the US and pay no tax, all the hassle, the wasted time and the audits are not worth the risk.

And no, the test is not the currency you are paid by. The test is getting paid into US bank account.
Sr. Member
Sep 22, 2005
581 posts
72 upvotes
BC
Switch to Stripe. Receiving US funds and get the funds deposited to US dollar account in Canada.
ak1004 wrote:
Feb 5th, 2019 8:35 am
Hello everyone.

I'm running an online business and using PayPal for payments. Few years ago they had 2.2% fee for merchants, no matter where the sale is coming from. Then in 2017 they increased the fee to 2.9% and added 0.8% cross border fee for US transactions and 1.0% for international transactions. I'm getting a slight discount and paying 2.6%, but since most of my sales come from US and Europe, my average fee is around 3.4%.

In addition, each time I withdraw money to my bank account, I'm paying around 2.8% Currency Conversion Fee (despite the fact that the official fee is 2.5% and they mention discounts on their website).

That comes to total of over 6% of my sales.

Is there any way to negotiate and lower those fees?

P.S. re posting here as advised by one of the members.
[OP]
Sr. Member
Mar 13, 2009
515 posts
59 upvotes
Thornhill
iceage wrote:
Feb 13th, 2019 7:52 pm
Switch to Stripe. Receiving US funds and get the funds deposited to US dollar account in Canada.
Thank you. I'm actually in contact with them right now, but I was less than impressed with their customer service so far. Took them 5 days to reply to my initial request, and now i'm already waiting another 4 days for more information.

Plus i'm not sure how realistic it is to switch few hundreds customers from PayPal to stripe.
Deal Guru
Aug 2, 2010
13218 posts
3418 upvotes
Here 'n There
ak1004 wrote:
Feb 13th, 2019 6:12 pm
Trust me, my accountant already forgot what you don't know.

This is a real experience from real clients. What worked great till couple years ago might not work anymore. You might do okay - till you don't. And when you become a person of interest for IRS, it will cost you much more than $5,000. Even if at the end you just file the tax return in the US and pay no tax, all the hassle, the wasted time and the audits are not worth the risk.

And no, the test is not the currency you are paid by. The test is getting paid into US bank account.
If you do not have nexus there are no audits and no hassle. That shows how little your book-keeper knows. Whether or not you become a 'person of interest' has no bearing on your US taxes because the test is not if they 'heard of you'. The fact your book-keeper told you what they did already shows they don't have a clue. I have forgotten more than both you and your book-keeper know about US tax law for Canadian businesses.

The test is whether you have nexus, not which bank account your money goes into. You can have nexus with your proceeds all being deposited into a Canadian bank so the test is not which bank account the money flows into but if your activity in the US is sufficient to give you nexus. The fact that you actually think that merely having only a Canadian bank account shields you from US taxes regardless of your activities in the US shows how little you know. Even a simple google search will prove that to you. If it was so easy to avoid US taxes by just having your proceeds flow into a Canadian bank account then all companies would be doing that. Did you learn that from your book-keeper too? Sheesh!

Again, stop spreading such blatant kindergarten misinformation. You are not doing anyone any favours by parroting what your clueless book-keeper whispered to you. You have proven you are the LAST person anyone should trust on with respect to these issues.
[OP]
Sr. Member
Mar 13, 2009
515 posts
59 upvotes
Thornhill
eonibm wrote:
Feb 13th, 2019 11:54 pm
If you do not have nexus there are no audits and no hassle. That shows how little your book-keeper knows. Whether or not you become a 'person of interest' has no bearing on your US taxes because the test is not if they 'heard of you'. The fact your book-keeper told you what they did already shows they don't have a clue. I have forgotten more than both you and your book-keeper know about US tax law for Canadian businesses.

The test is whether you have nexus, not which bank account your money goes into. You can have nexus with your proceeds all being deposited into a Canadian bank so the test is not which bank account the money flows into but if your activity in the US is sufficient to give you nexus. The fact that you actually think that merely having only a Canadian bank account shields you from US taxes regardless of your activities in the US shows how little you know. Even a simple google search will prove that to you. If it was so easy to avoid US taxes by just having your proceeds flow into a Canadian bank account then all companies would be doing that. Did you learn that from your book-keeper too? Sheesh!

Again, stop spreading such blatant kindergarten misinformation. You are not doing anyone any favours by parroting what your clueless book-keeper whispered to you. You have proven you are the LAST person anyone should trust on with respect to these issues.
Your "theories" is just that - theories. IRS doesn't care about your theories. I'm talking about real people who did what you do for years - until things started to change about 2 years ago. So next time someone follows your advice and gets audited by IRS, trust me, they are not going to thank you.

I noticed you already had similar discussions with other people. I also noticed that you have very little respect for your opponents. When someone disagrees with you, you start insulting them and trying to make them look small. The problem is that the only person who looks small is you. You believe you are smarter than others, and your arrogance clearly shows in almost every post.

A little secret: you can disagree with people without insulting them.

I also noticed that you posted over 13,000 posts on RFD. You basically live here. I'm just wondering how you find time for all your businesses. But then again, when someone constantly brags on public forums how he makes millions, makes you wonder.. Truly successful people are modest and humble. They don't need all that bragging.
Deal Addict
User avatar
Feb 3, 2011
2126 posts
397 upvotes
eonibm wrote:
Feb 5th, 2019 9:06 am
I process very sizeable US revenue and use a US payment processor both to avoid the cross-border fee and the currency conversion fee by having the funds deposited into the US side of my BMO Harris US bank account then I just write a cheque, deposit the funds into my BMO Canada Investorline account and use Norbert's Gambit to convert the USD to CAD at the bank spot rate. That saves me the 2.8% currency conversion fee + 0.8% cross border fee, 3.6% total, that you are paying. My US payment processor, Elavon, costs me an average of about 2.5%.

Depending on your US revenue that 3.6% for you might be a lot of coin.
Thanks for pointing me to BMO Harris. I don't process as many payments as you so I've just been eating the PayPal fees. I've had to do this ever since they removed the ability to keep my RBC US account tied to the PayPal account. I really hate PayPal...
Baaaaaaaaa!
Deal Guru
Aug 2, 2010
13218 posts
3418 upvotes
Here 'n There
ak1004 wrote:
Feb 14th, 2019 11:08 am
Your "theories" is just that - theories. IRS doesn't care about your theories. I'm talking about real people who did what you do for years - until things started to change about 2 years ago. So next time someone follows your advice and gets audited by IRS, trust me, they are not going to thank you.

I noticed you already had similar discussions with other people. I also noticed that you have very little respect for your opponents. When someone disagrees with you, you start insulting them and trying to make them look small. The problem is that the only person who looks small is you. You believe you are smarter than others, and your arrogance clearly shows in almost every post.

A little secret: you can disagree with people without insulting them.

I also noticed that you posted over 13,000 posts on RFD. You basically live here. I'm just wondering how you find time for all your businesses. But then again, when someone constantly brags on public forums how he makes millions, makes you wonder.. Truly successful people are modest and humble. They don't need all that bragging.
I run a number of businesses selling into the US and from the US so they are hardly theories. Nice try. I realize your feelings are hurt because you have been proven so wrong about this topic (easily proven by a simple google search). Time to take the chip off your shoulder and man up to your ignorance of the basics of doing business in and to the US. I also strongly suggest you change bookkeepers immediately before it costs you every more money. Also, be thankful of the fact there are people who 'live' in RFD all day long every day with no life to speak of (obviously my situation) so that people like you don't lead others astray. :rolleyes:

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