Accepting payment from Canada if in US

[md8287]

I have someone in Canada that needs to pay me. I know (I think) I can have them pay by credit card through PayPal but am wondering what other options exist. Tia.

 

[TheTimeTraveler]

I have someone in Canada that needs to pay me. I know (I think) I can have them pay by credit card through PayPal but am wondering what other options exist. Tia.

You can request an Electronic Transfer to your bank account in U.S. Funds (very fast), as well as accepting a check or money order (slower).




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[md8287]

You can request an Electronic Transfer to your bank account in U.S. Funds (very fast), as well as accepting a check or money order (slower).




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I was concerned a check would come in Canadian funds? I like the electronic transfer. Thanks

 

[tschwa2]

I think Canadians can get checks in USD from their banks.

 

[Fredflintstone]

I think Canadians can get checks in USD from their banks.

Yes, if you have a USD account. You can use a Canadian account BUT you have to write x dollars in US funds on the cheque. Doing this does attract added fees from the person issuing the cheque. Also, the exchange rate doing it this way is not favourable.


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[bogey21]

I think Canadians can get checks in USD from their banks.

A number of years ago I owned race horses in Australia and often had to pay expenses on them. At the time I had Wells Fargo issue checks in Australian dollars and take the American dollars to pay for them out of my account. Naturally there were fees involved...

George

 

[SherreeM]

Going through this now as I'm a Canadian who needs to send money to an individual in the US. It depends on the Cdn bank. I can write USD on my Canadian chequing account. Costs me $20 on top of the exchange rate. Electronic transfer ends up going through Western Union which means the recipient will have to go to a pick up location. Cost to me is $26. I am hoping to use PayPal - I will work out the US conversion.

 

[echino]

I am Canadian who sometimes sends USD to the US. There are a few options:

1. Credit card via PayPal. About 4% fee.
2. USD money order (or bank draft) from a Canadian bank. I know that BMO and RBC issue USD money orders drawn on their US subsidiaries, so this is going to be a standard US money order for the recipient. The cost depends, can be free (from BMO USD savings accounts) or up to $20 plus exchange rate.
3. Bank wire transfer.
4. Westen Union etc.

If this is not a very big amount, PayPal is the way to go, for speed and simplicity.

 

[tschwa2]

paypal international fees are 3.9 % vs the 2.9% for regular US to US transfers.

 

[mcsteve]

Just ask them to send a US$ Bank draft from their bank if you don’t want to do the PayPal or wire transfer thing. The bank draft is simple and will be the easiest for them to get from their own bank. More time via snail mail but will provide you less hassle than a money order from Western Union.

I use US$ money orders frequently (about once a month) and they provide me the best exchange rate.

 

[goaliedave]

I think Canadians can get checks in USD from their banks.

Yes it is simple for any Canadian to send payments in any currency,

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[goaliedave]

Fyi Canadians who travel or transact in USA, RBC and TD (maybe others) make it easy. I'm with TD so they let us open an account with a TD branch in USA using my Canadian address.

I can do online or telephone transfers for free. The USA debit card is VISA so can be used online to pay ts mf, checkin deposits at ts, as well as all vacation spending. Also got free checks ... US folk still use them lol ... i wrote my only one to LT transfers.


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[andre10056]

I once had someone send me money via Paypal from Canada....and we were uncertain about potential fees so we first did a trial "send" of a small amount of money to see what would happen. Approximately a 4% fee.

I then found a website that said one could send to "friends and family" and NOT pay a fee...even if Canada to the US. I also suggested that he fund the transaction by accessing the bank account directly and NOT via credit card. In any case, attempt #2: NO FEES WHATSOEVER.

Hence, he then sent me the "between 1000 and 2000 amount" entirely without fees.

 

[jabberwocky]

I thought most Canadians also had a USD checking account? Most banks offer them.

As mentioned by @goaliedave some like TD, RBC and HSBC will let you open bank accounts on both sides of the border (as opposed to just having a USD denominated account in Canada). Transfers can be done from Canadian to the US side seamlessly and the cheque is treated just like any other US cheque with no additional fees.

 

[goaliedave]

Problem is with fragmented USA banking system ... most won't take checks drawn on foreign banks.

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[mcsteve]

I thought most Canadians also had a USD checking account?

Interesting perspective. It’s been my understanding that banks don’t simply create accounts unless you request one and, unless you have a need for a USD checking account, why would you request one? My USD account is with RBC and there are fees attached to the account. If I didn’t need it to make payments to a company that, as mentioned by @goaliedave uses a bank which has trouble with foreign banks, I wouldn’t bother with the account.

I live close to a few major boarder crossings and know many people who have never been to the US. Yes, they shop online with US companies but do so via CC. I can’t see any of these people even considering a USD account. You don’t even need a USD account to have a USD CC as most major Canadian banks will issue one as an alternative card.

 

[bizaro86]

I thought most Canadians also had a USD checking account? Most banks offer them.

As mentioned by @goaliedave some like TD, RBC and HSBC will let you open bank accounts on both sides of the border (as opposed to just having a USD denominated account in Canada). Transfers can be done from Canadian to the US side seamlessly and the cheque is treated just like any other US cheque with no additional fees.

Not at all. Some Canadians do (mostly very frequent travelers or people with business/investments on the US), and it isn't that hard to get one. But there are generally fees, so most people dont bother. I would guess less than 1 out of 100 people do, but the rate would vary greatly based on the income of the people you sampled.

 

[goaliedave]

Fees... yes sorry i'm over 60 so no fees i always forget not everyone is retired lol

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[Sandy VDH]

I too deal with TD.

I have a Canadian TD which has accounts in Each of Can and US $. I can online transfer money from one to the other, and it charges me the valid conversion fee at that time. I also have a US TD Bank account which is linked to my Canadian Accounts online. I don't live in a state that has a TD Bank, but I set up an account in a state that did. I can transfer funds, $2500 daily, from my Can Bank US$ Account via a Visa Direct Transfer, to my US Bank Account. They initially charge a fee for this but the fee is refunded, at least on the account I have set up.

So since my family and many friends are still in Canada, and from whom pay me for rentals, this is my process:

1) I take the rental fee in US$ and convert the same amount in my TD account, and tell them what the current value is in Canadian funds. No charge to convert, but just adjust by the prevailing currency exchange rate.
2) I just have them forward me funds in Canadian $ via Interac Payment which is from any bank to any bank in Canada, (it is like ZellePay is in the US, but has been available at least a decade longer). There is NO fees charged for this.
3) I then transfer those funds to US $, and send them to myself at TD US Bank as mentioned above using the Visa Direct Transfer. 4) I then ZellePay those Funds to my main Chase Account.

Yes it is a four step process, but there are NO fees, and nearly no wait.

That Visa Direct Transfer option might work to any bank Visa Branded ATM Debit Card. I am not sure. But I do know from TD Canada to TD US, the reimburse the fees. The link below makes this option look available for a fee to anywhere internationally, with fees.

Here is info....

ways-to-pay-and-send-money

www.tdcanadatrust.com

Zelle® | A fast and easy way to send and receive money

Zelle® is a fast, safe and easy way to send and receive money with friends, family and others you trust. Look for Zelle® in your banking app to get started.

www.zellepay.com

 

[jabberwocky]

Not at all. Some Canadians do (mostly very frequent travelers or people with business/investments on the US), and it isn't that hard to get one. But there are generally fees, so most people dont bother. I would guess less than 1 out of 100 people do, but the rate would vary greatly based on the income of the people you sampled.

LOL - I guess I'm just hanging out with too many that are in the one percent. I would have put it at about 1/3 of those I know have access to a US checking account of some type. Usually when I open an account they always ask if I want a USD account as well.

Fees really aren't too bad. Our TD USD checking is a pay-as-you-go and costs $1.25/withdrawal or cheque (this is on the Canadian side) and I'm able to exchange CAD/USD at wholesale rates via my brokerage which usually saves 2.5%. We also have an account with the TD Bank US which has no fees. Other than a bit of flaky technology it works well.

I haven't been as happy with TD lately though - so I've been moving my accounts to HSBC. Thrilled with them - NO FEES with their Premier service (minimum levels of business do apply). They will open accounts in a variety of currencies (CAD, USD, HKD, RMB, EUR, GBP). Best part is that they can remotely open accounts in other countries, and if you have no fee premier banking in one country you have it in all other countries. Opening a US account took a couple of days and I was even able to open up a mainland China account. It's a pretty seamless experience and transfers are really easy between countries/currencies.

 

[bizaro86]

LOL - I guess I'm just hanging out with too many that are in the one percent. I would have put it at about 1/3 of those I know have access to a US checking account of some type. Usually when I open an account they always ask if I want a USD account as well.

Fees really aren't too bad. Our TD USD checking is a pay-as-you-go and costs $1.25/withdrawal or cheque (this is on the Canadian side) and I'm able to exchange CAD/USD at wholesale rates via my brokerage which usually saves 2.5%. We also have an account with the TD Bank US which has no fees. Other than a bit of flaky technology it works well.

I haven't been as happy with TD lately though - so I've been moving my accounts to HSBC. Thrilled with them - NO FEES with their Premier service (minimum levels of business do apply). They will open accounts in a variety of currencies (CAD, USD, HKD, RMB, EUR, GBP). Best part is that they can remotely open accounts in other countries, and if you have no fee premier banking in one country you have it in all other countries. Opening a US account took a couple of days and I was even able to open up a mainland China account. It's a pretty seamless experience and transfers are really easy between countries/currencies.

Oh for sure, I have a very comparable setup to the TD one (but at RBC). I have a USD account in Canada as well as an account with the rbc US business, so I can write USD personal cheques (checks?).

The HSBC premiere is interesting. I do my USD/CAD transfers through a brokerage as well for the best rates, but I'm only able to transfer in/out USD and CAD (at interactive brokers). How are you converting to other currencies (ie RMB?)

 

[jabberwocky]

The HSBC premiere is interesting. I do my USD/CAD transfers through a brokerage as well for the best rates, but I'm only able to transfer in/out USD and CAD (at interactive brokers). How are you converting to other currencies (ie RMB?)

I use IB as my brokerage as well. It pairs quite nicely with the HSBC product since IB gives you one free withdrawal per month which can be wired directly to the HSBC foreign currency account (for me this would be GBP, HKD and EUR - unfortunately HSBC no longer has CHF accounts). Once it is in the account you can withdraw the foreign cash from the branch. You can also wire online from an HSBC foreign currency to IB for a $20 fee (transactions up to $30k). For larger amounts ($10k) it can provide significant savings as the bank fx fee along would be hundreds of dollars. Usually the conversion for me is going CAD to foreign currency so I don't pay any real fees with this setup.

For conversions to RMB I just use HSBC's conversion mechanism (around 2% fx surcharge). I really only set up the mainland China account to be able to use WeChat Pay and Alipay while there so the amounts being transferred CAD to RMB are small (say $500-1000 for a 4-5 day trip). I think most mainland Chinese vendors assume that a white guy from North America can only use credit cards or is carrying around a wad of cash which makes it fun to order in a restaurant or pay for stuff with my phone.

 

[bizaro86]

I had no idea you could get foreign wires for your 1 free IB withdrawal per month! Thanks!

Do you happen to be meeting the requirement with an at their discount broker? I'm interested to know whether that counts and how you've found them as their pricing seems competitive, so I could move some RRSP money over at little actual cost to meet the minimums.