Managed Payments $US account - which bank?

[pjcdn2005]

For those sellers who have decided to get their payouts in $US, which bank are you using and have you already set it up with MP?   There doesn't seem to be a lot of choices for $US chequing accounts and they all seem to have some sort of fee.  

[byto253]

Sent a PM.

[marnotom!]

I think @recped has posted a link to this article a couple of times.  You may find it useful:

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

I also found this article but a quick skim of it suggests to me that the article's focus is more on US dollar savings accounts rather than chequing accounts:

https://walletwise.ca/best-usd-account-canada/

Also consider credit unions.  I don't think my wife and I have ever been charged anything for our US dollar account, which has been sitting dormant with a balance of US$5.02 for several years now.

[itolduandso]

Another guide here, I found this helpful:

https://livingoffcloud.com/us-bank-account-for-canadian/

[marnotom!]

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@itolduandso wrote:

Another guide here, I found this helpful:

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That page is about US-based bank accounts for Canadians, which will not work with how Managed Payments is being set up for Canadians wanting to deposit US dollars.

[pjcdn2005]

Thanks for the replies!

[itolduandso]

Anybody knows if Tangerine USD Savings account can handle direct debits and direct deposits?

I was trying to get the answer from them but the website chatbot doesn't work (tried different devices, also mobile, different browsers and the chatbot doesn't work, and no it's not popup blocker) and the support line bad quality, I have set the volume on minimum, music barely heard but the announcer shrieking every 2 minutes (reminding me I can find all information on their website) and wait time 1 hour to speak with someone at Tangerine.. So I gave up and will likely stick with Scotiabank USD checking, it's free overr 200 dollar balance, the transactions are 1.25 dollar after first 2 free.

[marnotom!]

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@itolduandso wrote:

Anybody knows if Tangerine USD Savings account can handle direct debits and direct deposits?

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Savings accounts tend to be kinda weird for direct debits and direct deposits, although in theory they should work.  Banks generally argue that savings accounts are not transaction accounts.  But Managed Payments requires that a Canadian-based USD chequing (checking?) account be used with their system.  

[itolduandso]

The Scotia USD Daily Interest Savings account doesn't work. Although it accepts deposits, I got message .... "We couldn’t verify this bank account. Please provide a different bank account."

So now back to looking for bank account.

[itolduandso]

Anybody successfully added EQ Bank USD account?

https://www.eqbank.ca/personal-banking/everyday-banking/usd

I am running out of time here I believe I have till July 15 to sign up, so at this time I am considering just opening accounts with TD, BMO and EQ Bank in the hope one will work.

I do like what I read about EQ Bank about the CAD to USD exchange rate but have to yet confirm if same goes for USD to CAD exchange rates? 

(Obviouly there is no Transferwise for USD to USD transfers, but I hope the USD to CAD rates are favorable at EQ).

[marnotom!]

I guess I confused you by stating that US dollar savings accounts should work "in theory".

Stop looking for US dollar savings accounts and look for Canadian-based US dollar accounts that specifically say that they are chequing accounts.  EQ Bank's US dollar account is not a US dollar chequing account, from what I can see.

If the financial institution you are using for most of your other banking offers a decent US dollar chequing account that keeps its fees minimal, I suggest you go with that as it's likely going to be easier and cheaper to transfer the funds to one of your exisiting Canadian dollar accounts, exchange rate be damned.

If you're looking for an online option, Tangerine (Sootiabank subsidiary) or Simplii (CIBC subsidiary) get a lot of mention here.  I've seen TD Canada Trust's US dollar chequing account come up a few times in discussion because of its fee structure.  My credit union's US dollar chequing account has never charged me fees, as far as I recall, but if you don't already have a credit union membership, it may be more hoop-jumping than its worth for you to get one.

[itolduandso]

The Tangerine acount is Savings account and it specifically says so. Where does Tangerine say the USD is checking? 

https://www.tangerine.ca/en/products/saving/savings-accounts/us-savings-account/

Tangerine is owned by Scotiabank.  It's basically the same account as Scotia Savings.   

Unfortunately "it does get mentioned" but whether it works that's the question.

[itolduandso]

And Simplii doesn't even have USD account.

[itolduandso]

Investigating way to transfer USD between banks via Tangerine... https://forums.redflagdeals.com/transfer-usd-money-between-canadian-bank-accounts-2393829/

As you may know eTransfer doesn't work for USD.

Scotia bank as many other banks have brutal spreads, like today Scotia has 0.07 buy sell spread, while Transfwewise has 0.009 buy sell spread.  EQ Bank is a bit better with the USD to CAD rate about 0.014 better than Scotia, at least today. EQ Bank CAD to USD is likely copying Transferwise as they are linked, so the savings in EQ Bank compared to Scotia could be 0.03 for CAD to USD when comparing EQ to Scotia.

[marnotom!]

Apologies for that post.  I guess the references to Tangerine and Simplii are just for sellers who want a Canadian dollar chequing account that's quick to open and separate from their other monies.

I'm thinking the best option for you at this point is to check out the USD chequing account options outlined on the webpage linked in message 3 of this thread and compare them to what your favourite (if there's such a thing) financial institution offers.

It turns out my credit union doesn't charge monthly fees for its US dollar chequing account but will charge transaction fees of $1 after I've used up my one free transaction for the month.  This strikes me as being pretty competitive with what else is out there. 

[itolduandso]

Confirmed with phone support at Tangerine, they do offer USD account EFT Transfers in and out between other Canadian USD bank accounts, which is great...... This is a unique service, I don't see any other bank offering it, unless you have BMO Premium account, apparently they do that as well as customer service or unless you open a business account (which is free, too much hassle to do that right now and I am not clear if the cheapest business accounts would offer EFT). The EFT business fees are about 1 dollar per transfer.

I am going to try Tangerine account open to see if it works with Ebay MP.  If that doesn't work either I have to go with TD. I'll update how things worked out.

[marnotom!]

I'm not sure why you keep experimenting with Canadian-based USD accounts that aren't specifically labelled as chequing accounts, but yes, do let us know if it works out.

[itolduandso]

It's because if it says it's savings... it doesn't mean it doesn't work.  It depends on availability of EFT with the savings account. There are some differences between Savings and Checking account but it's mostly thing of the past as the differences are overlapping more and more.  Savings accounts sometimes don't have free or unlimited transactions included, cash deposits, cheques, bank cards, cash withdrawals,EFT as mentioned...Savings account will likely never have overdraft.

And yes, I was able to connect Tangerine USD Savings to Ebay MP.

After thorough reading I believe connecting EQ Savings Bank could possibly also work because EQ account is similar to Tangerine USD. For example with EQ USD savings you can attach 3rd party USD bank accounts to do direct EFT transfers (both deposits and witdrawals in USD without conversion).

https://www.highinterestsavings.ca/forum/eq-bank/usd-savings-account-coming/

That EFT function makes it quite similar to a regular chequicking account

In fact I am going to open EQ later this month as well to see what are the exchange rates USD to CAD.

[marnotom!]

@itolduandso wrote:

It's because if it says it's savings... it doesn't mean it doesn't work.  It depends on availability of EFT with the savings account. There are some differences between Savings and Checking account but it's mostly thing of the past as the differences are overlapping more and more.  Savings accounts sometimes don't have free or unlimited transactions included, cash deposits, cheques, bank cards, cash withdrawals,EFT as mentioned...Savings account will likely never have overdraft.

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I said the same thing with fewer words and a bit less knowledge in message 8.  😁

In the 90s when Direct Deposit was becoming a thing, I had my paycheque deposited to a BMO savings account and it worked fine.  I don't have any experience with direct deposits to Canadian-based USD accounts, though, and I thought there might be some mechanism beyond the EFT capabilities that might make a Canadian-based USD savings account incompatible with Adyen's Managed Payments system.

Good to know and good that you were able to make it work for you.  😁

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@itolduandso wrote:

After thorough reading I believe connecting EQ Savings Bank could possibly also work because EQ account is similar to Tangerine USD. For example with EQ USD savings you can attach 3rd party USD bank accounts to do direct EFT transfers (both deposits and witdrawals in USD without conversion).

https://www.highinterestsavings.ca/forum/eq-bank/usd-savings-account-coming/

That EFT function makes it quite similar to a regular chequicking account

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When I read the description for that account earlier today, I did think it sounded like a chequing account without chequebooks, but I thought that was marketing puffery.  That may be the way chequing accounts are going, though, given how little cheques are used by the average Joe or Jane now.  My understanding is that chequing accounts are regarded more as "transaction accounts" and savings accounts are regarded more as holding pens for funds.

For what it's worth, someone posted a few weeks ago about their inability to attach an EQ Bank account to PayPal, but that might be just a temporary glitch:

https://community.ebay.ca/t5/Payments/Anyone-successfully-linked-EQ-Bank-to-PayPal/m-p/459540

[2knee]

ebay is withholding  $2000 of mine as they are now using Adyen instead of Paypal and are attempting to send my money to a bank which must accept  ESP payments but unfortunately I didn't know  TD will not accept  ESP from     Adyen/ ebay .......  Use a different bank that accepts  ESP  payments