Losing Big on the Exchange 110,000 per year :(

[ameroindustries]

Is there any way outta this ... Currently im losing about 6% per Transaction on Usd dollar exchange .. Because im selling the dollars on paypal then rebuying them back with my bank and this is getting Awful . Im losing enough for 3 employee's salary's a year .

Opening a usa bank account ? what are the laws with this with a company .

I guess i could sell in Canadian dollars but it would drive my sales down im sure more than 2.5% which would not make it feasible and confuse / drive away my American customers .

[surplusdealdude]

If you use USD to buy your stuff, then open an American account in an American Bank.

Since the initial transaction comes to Paypal Canada, US authorities cannot make the case that you are carrying on business in the US.

Then, you'll have to transfer the funds to a US Paypal account, which you can set up with the US Bank account and from there transfer the money into your bank.

Or get your suppliers to accept paypal and pay them directly.

[recped]

Drive to the USA

Walk into any bank, Credit Union etc.

Ask to open a PERSONAL account

Add the personal account to your Canadian PayPal account.

Withdraw your US PayPal funds to your new US bank account

OK next step to saving more money

Go to xe.com and open a trading account (not an fx speculating/trading type account). Once you set this up which will take a few weeks given that they will need to verify both accounts you will be able to sell your US Dollars for Canadian Dollars at a very low spread (usually less than .75%).

I'm assuming you need most of the US Dollars to use for purchasing US Dollars denominated goods, for that you can simply write a cheque from your US based account to your Canadian based US Dollar account.

I've no saved you about $80,000 you can send me my "bonus" via PayPal, Money Order, Cheque or Cash. I'm sorry but I cannot accept paintball supplies as payment.

[recped]

I've no saved = I've now saved

[surplusdealdude]

Add the personal account to your Canadian PayPal account.

Paypal won't let you do that anymore, I tried.

They want the exchange revenue.

[pierrelebel]

"Currently im losing about 6% per Transaction on Usd dollar exchange .. "

I really do not understand how you could lose 6% on currency conversion.

PayPal only charges a 1.5% spread on conversion for sellers with high volume (like yours and mine and most Powersellers Gold and above).

A US dollar account makes sense if you purchase your inventory in US$.

As far as eBay fees are concerned, you have the choice of having eBay bill you in US$ or Cdn$ - no spread - depending on what currency is most convenient to you. If you receive mostly US$ for your sales, it makes sense to have eBay bill you in US$.

[pierrelebel]

Actually, the numbers in your post imply a monthly volume well in excess of $125,000 at which point PayPal only charges a 1.0% currency conversion fee - that is about the same rate Canadian banks charge on transactions exceeding $10,000.


For more information, please check the announcement at this http://www2.ebay.com/aw/ca/200805011002562.html

[bighillbargains1]

As far as eBay fees are concerned, you have the choice of having eBay bill you in US$ or Cdn$ - no spread - depending on what currency is most convenient to you. If you receive mostly US$ for your sales, it makes sense to have eBay bill you in US$.

I didn't know this option was available. Where can I set this preference? I'm selling all in US$ but listing all on ebay.ca.

Thanks.

[recped]

You can get you fees billed in Swiss Francs as well....

pages.ebay.ca/help/sell/billing-currency.html

[cottonwoodindustries]

I opened a PERSONAL Account with the Sterling Bank, using my US PO Box, took a little doing considering we do not have a US SIN #, but everything worked out perfectly.

Cost nothing to set, they gave me 100 FREE Cheques, all tranactions are FREE, No SERVICE CHARGES at all.

I received a CHECK CARD, kinda like a DEBIT card but you can use it like a VISA - no charge, now I can buy on line from US STORES that do not sell to CANADIANS, because I now have a verified US ADDRESS, as well as a CANADIAN one.

I never have to enter that bank ever again, if I do not want to. I do everything online.

I linked that bank to my CANADIAN PAYPAL Account, and transfer money to and fro to my US BANK.

The bank has never turned down a transfer from by eBay Business account (Cottonwoodindustries).

To transfer money into my US CANADIAN ACCOUNT with BMO, I just use one of those FREE CHEQUES I got, works like a hot damn.

As for my billing, I list on eBay.ca and pay my eBay fees in US FUNDS, you can change the way they charge you.

Ooooh! Ooooh! Just Loving Life, well everyone have a great day! I sure am!!!!!;)

[bighillbargains1]

You can get you fees billed in Swiss Francs as well....

Thanks, for the link!

But Swiss Francs was not an option, just US$ and Euro 😉

[axe_n_gear_music]

PIERRE:
"As far as eBay fees are concerned, you have the choice of having eBay bill you in US$ or Cdn$ - no spread - depending on what currency is most convenient to you. If you receive mostly US$ for your sales, it makes sense to have eBay bill you in US$."

I cant seem to find where I go to change it so that eBay charges me in US$
Do you or anyone else have any ideas?

Thanks,
AXE

[pierrelebel]

To change your billing currency, go to the Site Map (link near the top at right) and select
"Change Your Billing Currency " (middle column at bottom)

[axe_n_gear_music]

Done, thanks Pierre, your help is much appreciated.

Cheers,
AXE

[ameroindustries]

Ok Got my billing changed over to usd Funds 🙂 thats Great never thought of this ...

The Exchange rate im getting from paypal still sucks tryed to exchange now .. spot around 1.05 and im offered 1.0220 ..

I do 175,000 per month in fund exchange .


I do have a 50,000 cap on my account (there holding 50k of my money due to "high" risk items i sell ... and i always have a few charge back's each month so im thinking there putting me in the lowest category . 2.5% crap . There is nothing else to explain it :S I must not be a good paypal member . Ahhh Whats new always in trouble .

[pierrelebel]

"There is nothing else to explain it "

Give them a call and ask.

[pjcdn2005]

Axe, When you changed to U.S. did you have to give them a credit card number so that they could bill your account to it? I thought I had read something about that when I was going to change mine to be billed in U.S.$

[pierrelebel]

One can obtain a credit card denominated in US dollars from all major Canadian banks (VISA or MasterCard)

[pjcdn2005]

I have one Pierre but if I use it I have to take money from my bank account and change it to U.S.$ to pay the Visa bill so I still have to pay an exchange rate. If I'm figuring this out right, I would have to pay for exchange twice...once when I deposited it into my Cdn bank account and then again in order to pay my Visa.

I realize that opening a bank account with a U.S. bank would solve that problem but I won't be able to go to the U.S. for a few months.

I think the best way for me right now is to pay my ebay fees directly from my Paypal account. Does that make sense?
If I attach a credit card, will I still be able to pay from my Paypal account?

[pierrelebel]

The secret is to have BOTH a US dollar denominated account and a credit card denominated in US dollars.

I pay my US$ credit card (to which my eBay fees are billed) every month from my US dollar account - no conversion is required.

Another advantage of using a credit card to pay eBay fees instead of PayPal is CASH FLOW. With a credit card, you get an extra 30 days on average (without interest). If your fees average more than one thousand dollars a month, it does make a difference.

Finally, most credit cards give rewards. My BMO MasterCard gives me AirMiles every month on my eBay fees. Over they years, it does add up, even if you do not use them for travel. AirMiles can be used to buy all kind of "stuff" including gift cards for A&P, Metro, Dominion, etc...

"Free groceries" thanks to eBay! I love it! 🙂

"If I attach a credit card, will I still be able to pay from my Paypal account?'

Yes, having a credit card on file does not remove your ability to make "one time" payments to your eBay seller account from your PayPal account (as long as you do it before eBay charges the credit card).