MP getting paid in USD as a Canadian seller?

[biglittleape]

I'm located in Canada but sell exclusively on .com for USD

The managed payments registration allows USD as currency but not US based bank account, they're forcing a Canadian bank.  I have TD and RBC US located accounts as well but can't enter them since they don't have institution numbers.

Are Canadian banks capable of receiving direct deposits in USD into a USD checking account without fees?

Can't seem to find clear info as to how Canadian sellers can receive USD with no fees associated with currency conversions or wire transfers.

[biglittleape]

It seems right now if you're in Canada and need to receive USD payments it's best to set payouts to weekly and have those go into a USD checking account and eat the $17 wire transfer fee each week.  Would have been even better if one could collect a balance and then manually trigger a transfer like you can do with PayPal.

USD -> CAD -> USD you're out about 7%

It sure feels like going back into the stone age with this managed payments garbage.  Instead of improving and making things simpler they're making things more complicated and restrictive.

[marnotom!]

I think a payout from eBay would be considered an electronic funds transfer along the lines of a direct deposit rather than a wire transfer, so you shouldn't be dinged for a wire transfer to receive a USD payment from eBay.  Sellers currently enrolled in Managed Payments aren't being dinged wire transfer fees for receiving payouts for their Canadian dollar sales, at any rate.

The US does have a different EFT system than Canada does, so I can see how you might be concerned that Adyen might be using wire transfers as a workaround, but I doubt that's the case.  Keep in mind that the cost of wire transfers can be covered by the sender or the recipient, and there'd likely have to be a clause in the Managed Payments agreement dealing with this.

As far as options for US dollar accounts, a link to this page has been posted by others a few times.  You'll probably want to decide if a flat monthly fee, a set number of free transactions or some other option works best for you:

https://www.savvynewcanadians.com/best-usd-dollar-bank-account-options-canada/

[recped]

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@biglittleape wrote:

Are Canadian banks capable of receiving direct deposits in USD into a USD checking account without fees?

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The answer is YES they can. There are no fee US Dollar accounts from many Banks / Credit Unions. Some only offer Savings Accounts which won't work for eBay but others offer chequing accounts. I have one with Meridian which is fee free and actually pays a bit of interest.

The way the Canadian Dollar is moving these days holding US Dollars is no longer a good investment. Forecasting the future of the CAD is difficult but in the short term it seems like there is nowhere to go but UP.

[biglittleape]

By fees I'm referring to the actual USD direct deposit transaction.  I'm not referring to having a USD checking account in your Canadian bank.

I think this will depending if the payments are being sent from within Canada. If they are coming from outside of Canada than they can't be the regular "direct deposit" type of transactions you would get from your local employer.  They would be classified as wire transfers and all our banks here have a $17.xx fee on those, charged in the currency being received.

[recped]

Adyen/eBay use the standard method of Direct Deposit, they are set up with the local banking system in all the countries they operate in.

They do not use "wire-transfers"!

[biglittleape]

OK than that should mean USD direct deposits into Canadian banks should be good to go with no fees when receiving.

Can anyone who does this already confirm?

[lotzofuniquegoodies]

@biglittleape 

FWIW you can try checking out the attached discussion and recent related announcement. They may or may not have answers you seek.

https://community.ebay.ca/t5/Weekly-Chat-Session/May-5-2021-Weekly-Session-Managed-Payments-Payouts-...

https://community.ebay.ca/t5/Announcements/Important-updates-on-payout-capabilities-when-eBay-manage...

-Lotz

[marnotom!]

Seeing as this is a very recent development for Managed Payments in Canada, I don’t think you’re going to get much in the way of responses to your query.

I’ll add, though, that I really can’t see how eBay or Adyen would incur any expenses for depositing a direct-deposit payout to a Canadian-based US dollar account. Any expenses related to the payout would involve sending the payment, and those would be rolled into the fees sellers are paying eBay.  (PayPal passes its expenses along to the user at the time the user requests a withdrawal from their PayPal account.)

Any additional fees for accepting a direct deposit payout to a USD account on Canadian soil more than likely would be levied by the seller’s financial institution.