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  • May 17th, 2021 5:32 am
[OP]
Deal Addict
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Oct 13, 2007
3855 posts
2603 upvotes
Edmonton

PayPal Question

I find PayPal confusing with regard to U.S. transactions and conversion fees. I am wondering if one of you experts can help.

My PayPal account shows CAD as a primary account and then USD in the Wallet section. So if someone from the U.S. sends me money, do I get hit with any fees? There is some mention on the website that there are no fees if there is no conversion involved but will PayPal automatically convert USD to CAD or will they just deposit the USD in that section as is?

The PayPal site also states: "There is a fee when you send a payment to someone in another country or if you receive a payment from someone in another country." Is there any difference if t's a personal payment or a purchase payment?
8 replies
Deal Addict
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Nov 14, 2003
4850 posts
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LaLaLand
If you have a USD currency section, any US funds will be deposited in the USD section and there will not be any currency conversion fee. If you did not, then it would automatically convert to your primary currency. If you sell something on eBay, you will get charged a transaction fee. This is different than the seller fees that eBay charges.

I think if you send or receive funds from a friend in a different country, there may be a small fee.

Payments made through PayPal are covered by the PayPal seller/buyer polices whereas transfers to/from friends are not covered and it is not recommended to circumvent the seller fees by sending a payment for a purchase with a friends transfer. If the purchase/sale goes sideways, you would not be covered.
Deal Guru
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Feb 10, 2007
12459 posts
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There is no fee if

a) person in the same country
b) the person send the payment via Friends & Family payment
c) same currency

Otherwise you'll get ding with transaction fees.
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Sr. Member
Oct 9, 2011
771 posts
334 upvotes
Personal payment = no fee (not available in some countries, no protection)
Purchase = fee

If you receive fund in another currency, it will stay in that currency. You can convert it whenever you want. If you want to transfer fund to your Canadian bank account in cad$, you have to convert using PayPal's conversion rate. Best way is to spend it in that currency instead of converting.
Deal Addict
Apr 24, 2014
1279 posts
743 upvotes
If you plan on receiving USD payments you should probably switch to USD as primary currency so that it doesn't automatically exchange to CAD when it gets sent. Also make sure the to mention to the sender explicitly selects USD and not CAD.

A fee of 4.9% or whatever will apply for payments sent from another country, unless it's sent via Friends and Family.
Deal Expert
Jan 17, 2009
19605 posts
28597 upvotes
ONTARIO
Also when it comes to transferring out your USD out of PayPal, definitely look into getting a Transferwise account.

When you want to transfer out USD from PayPal to your Canadian bank account, PayPal's fees are atrocious.
However if you get Transferwise (free), you can add your Transferwise account to PayPal as a USD bank.

So when you go to transfer USD out of PayPal, as long as you send it to your Transferwise "USD" bank account, there is no conversion and no fees.

Ever since I learnt about this last year, I've probably saved myself hundreds upon hundreds of dollars by skipping PayPal's conversion fees.

Once the funds are in your Transferwise account (usually takes about 12-24 hrs in my experience), you can transfer the USD funds again to your Canadian bank account.
It will get converted and Transferwise has their own fee, but the difference between what PayPal charges and Transferwise is night and day.

I just transferred out $515 USD from my Transferwise account to my Canadian bank account earlier today and the fee was $2.76 USD. What would PayPal have charged had I just transferred the funds directly to my Canadian bank account? Probably take at least another $15 USD off the top.
Sr. Member
Oct 9, 2011
771 posts
334 upvotes
hybrid09 wrote: If you plan on receiving USD payments you should probably switch to USD as primary currency so that it doesn't automatically exchange to CAD when it gets sent. Also make sure the to mention to the sender explicitly selects USD and not CAD.

A fee of 4.9% or whatever will apply for payments sent from another country, unless it's sent via Friends and Family.
I have primary currency as CAD, but when I receive fund in other currencies, they stay in that currency, they dont get converted automatically. If I want to transfer fund to my bank account, then I have to convert different currency to CAD.
[OP]
Deal Addict
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Oct 13, 2007
3855 posts
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Edmonton
batcave wrote: If you have a USD currency section, any US funds will be deposited in the USD section and there will not be any currency conversion fee. If you did not, then it would automatically convert to your primary currency. If you sell something on eBay, you will get charged a transaction fee. This is different than the seller fees that eBay charges.

I think if you send or receive funds from a friend in a different country, there may be a small fee.

Payments made through PayPal are covered by the PayPal seller/buyer polices whereas transfers to/from friends are not covered and it is not recommended to circumvent the seller fees by sending a payment for a purchase with a friends transfer. If the purchase/sale goes sideways, you would not be covered.
Well, not sure what happened here but I received my money in CDN. I had even changed my primary currency to USD as suggested by another poster.

I asked the sender to send as a personal transaction but not sure if he did this.

I can’t find any breakdown provided by PayPal of amount sent in what currency, if it was sent as a personal transaction, if the sender sent USD and if it was converted + conversion fees, nothing but my net amount.

Is this normal? For a company as big as PayPal doing so many transactions on a daily basis, I can’t believe that there is no complete itemized breakdown.

He told me that he rounded the payment (USD) but the CDN amount is an odd amount so PayPal must have done a conversion in the process.
Sr. Member
Feb 6, 2016
536 posts
409 upvotes
Scarborough, ON
hi ,off subject consider i have paypal with cad and usd balance ,how can i fund my paypal usd balance with us dollar cash money or bank.thanks

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