Personal Finance

PayPal withdrawals to Canadian banks being reversed?

  • Last Updated:
  • Sep 27th, 2017 5:36 pm
[OP]
Newbie
May 16, 2017
10 posts
2 upvotes

PayPal withdrawals to Canadian banks being reversed?

I've been having an issue with withdrawals from PayPal --> Canadian Bank (RBC) being reversed for the past month.

This is a new bank account I created (for my corporation), and hence I have never withdrawn from PayPal to this account before. The PayPal account is also new.

According to their (PayPal's) phone representative, they've been having trouble processing withdrawals to Canadian banks in the past few months.

I'm not sure whether to believe them or not because I haven't seen any posts on the net about this, but I've seen similar accounts dating back to 2012 (leading me to believe it's just a few isolated incidents here and there, and they are not telling us the real reason why the withdrawals are being reversed).

So, anyone else having trouble?

Anyone else dealt with this in the past and know how to resolve it?
63 replies
Deal Addict
Jul 18, 2016
1828 posts
661 upvotes
ruffalbite wrote:
Jul 14th, 2017 2:22 am
I've been having an issue with withdrawals from PayPal --> Canadian Bank (RBC) being reversed for the past month.

This is a new bank account I created (for my corporation), and hence I have never withdrawn from PayPal to this account before. The PayPal account is also new.

According to their (PayPal's) phone representative, they've been having trouble processing withdrawals to Canadian banks in the past few months.

I'm not sure whether to believe them or not because I haven't seen any posts on the net about this, but I've seen similar accounts dating back to 2012 (leading me to believe it's just a few isolated incidents here and there, and they are not telling us the real reason why the withdrawals are being reversed).

So, anyone else having trouble?

Anyone else dealt with this in the past and know how to resolve it?

My wife and I both have Paypal accounts and businesses accounts that we have been depositing to from Paypal. We have so far had no difficulty. However, in both our cases, these aren't new accounts.

Did you setup the account properly with Paypal? I recall that when I setup my own account with them 3 months ago, I had to verify by entering my bank card number - in other words, I had to go through a verification process that involved logging into my online banking with my bank.

I recall several verification steps. I then received an alert informing me that all restrictions had been removed from my accounts. Did you receive a similar alert informing your that restrictions had been lifted? There may be a restriction on your account with Paypal.
Deal Expert
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Aug 18, 2005
16968 posts
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GTA West
Does the corporate name on your bank account match the one in your PayPal account? If they don't match, you might see this problem.
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Deal Addict
Nov 22, 2015
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ruffalbite wrote:
Jul 14th, 2017 2:22 am
I've been having an issue with withdrawals from PayPal --> Canadian Bank (RBC) being reversed for the past month.

This is a new bank account I created (for my corporation), and hence I have never withdrawn from PayPal to this account before. The PayPal account is also new.

According to their (PayPal's) phone representative, they've been having trouble processing withdrawals to Canadian banks in the past few months.

I'm not sure whether to believe them or not because I haven't seen any posts on the net about this, but I've seen similar accounts dating back to 2012 (leading me to believe it's just a few isolated incidents here and there, and they are not telling us the real reason why the withdrawals are being reversed).

So, anyone else having trouble?

Anyone else dealt with this in the past and know how to resolve it?
If the account names don't match, your bank should and may be rejecting the payments.
Deal Addict
Jul 18, 2016
1828 posts
661 upvotes
Jucius Maximus wrote:
Jul 14th, 2017 9:03 am
Does the corporate name on your bank account match the one in your PayPal account? If they don't match, you might see this problem.
Perhaps, however my business name with Paypal is different from the business account with my bank, and I have had no trouble.

Having said that, I am declared as a sole proprietor and not a corporation. The rules may be different for a corporation.

Edit: I am wrong. Scotiabank has updated my profile with the new business name.
[OP]
Newbie
May 16, 2017
10 posts
2 upvotes
Jucius Maximus wrote:
Jul 14th, 2017 9:03 am
Does the corporate name on your bank account match the one in your PayPal account? If they don't match, you might see this problem.
Indeed they do.

I went through the whole bank verification process (which I don't believe would have passed had the PayPal name not been the same as the corporation name).
Newbie
Jun 7, 2017
13 posts
When you say they are being reversed, what "description" is given on your statement?

If its a Item Returned NSF then it's pretty self explanatory. Remember that there is a 3-5 business day processing time for most Paypal transactions.
[OP]
Newbie
May 16, 2017
10 posts
2 upvotes
Xprezzatura wrote:
Jul 14th, 2017 12:57 pm
When you say they are being reversed, what "description" is given on your statement?

If its a Item Returned NSF then it's pretty self explanatory. Remember that there is a 3-5 business day processing time for most Paypal transactions.
It's unfortunately a super-generic message:

"The withdrawal to your bank account could not be completed because of a technical problem. The money has been returned to your PayPal account."
Deal Addict
Jul 18, 2016
1828 posts
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ruffalbite wrote:
Jul 16th, 2017 11:23 pm
It's unfortunately a super-generic message:

"The withdrawal to your bank account could not be completed because of a technical problem. The money has been returned to your PayPal account."
I just opened a second PayPal account on Sunday - this time a personal one ( not business ), and the process for authorizing my bank account failed. I reattempted the authorization 3 times, and now they are requesting that I enter banking information in manually.

I think PayPal is having issues.
[OP]
Newbie
May 16, 2017
10 posts
2 upvotes
hvwozq wrote:
Jul 17th, 2017 8:36 am
Did you contact RBC and ask if they are rejecting or even seeing those incoming payments? I made a withdrawal to my RBC account two days ago, should show up today around 2:35 PM.
Indeed I hace - they claim to know nothing of these transactions.

They did mention they changed "something" in their system in regard to how transactions are processed, hinting that that could be the problem.

But at the same time I am surprised I am not able to find anyone reporting the same issue.
Deal Fanatic
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Mar 12, 2005
7449 posts
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Victoria
The names matching thing is really key with the EFT system now. The same system used for bill payments, paypal etc.... I think it used to fly under the radar. People could use it to change the ownership of funds (untracked). Now financial institutions are cracking down on it, so if the name of the sender and the name of the receiver don't match they'll bounce it back. I'm sure not all FI's have cracked down on it yet, but it's definitely something gaining more traction as time goes on.
Member
Jan 19, 2017
456 posts
124 upvotes
ruffalbite wrote:
Jul 14th, 2017 2:22 am
I've been having an issue with withdrawals from PayPal --> Canadian Bank (RBC) being reversed for the past month.

This is a new bank account I created (for my corporation), and hence I have never withdrawn from PayPal to this account before. The PayPal account is also new.

According to their (PayPal's) phone representative, they've been having trouble processing withdrawals to Canadian banks in the past few months.

I'm not sure whether to believe them or not because I haven't seen any posts on the net about this, but I've seen similar accounts dating back to 2012 (leading me to believe it's just a few isolated incidents here and there, and they are not telling us the real reason why the withdrawals are being reversed).

So, anyone else having trouble?

Anyone else dealt with this in the past and know how to resolve it?
Is your RBC bank acct US$ acct? What currency is your PayPal acct?
Deal Addict
Feb 29, 2012
2662 posts
1392 upvotes
Richmond
Just in general with issues like this I have found that the explanations offered by customer service reps may be guesses that are incorrect. They typically don't know much about the internal workings of their organization that our outside their daily experience. Transactions between institutions like Paypal and Canadian banks are typically handled by departments buried deep in the organization that have no external interface. Experimentation is usually the best way to determine the explanation for yourself - consider the system a black box with inputs and outputs. :)
Deal Addict
Aug 3, 2014
3869 posts
1662 upvotes
ruffalbite wrote:
Jul 17th, 2017 1:29 pm
Indeed I hace - they claim to know nothing of these transactions.

They did mention they changed "something" in their system in regard to how transactions are processed, hinting that that could be the problem.

But at the same time I am surprised I am not able to find anyone reporting the same issue.
I still don't see the money in my RBC account. I might have the same issue after all. :lol:

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