SEM Tycoon

**JeremyTang** · 11-24-2006, 08:33 PM

Being a Canadian resident and now recently recieving payments on PayPal, I noticed that they tend to give a very, very, very lousy exchange rate from USD to Canadian. In fact, I would argue its basically a scam to take another 5% of your earnings when they do the conversion. As of today, Google's payment was a respectable 1.145 conversion, whereas paypal is 1.10. Obviously they don't make a big fuss about it, but essentially they get to pocket that major discrepancy. I know banks do it too; but I can't remember it being anywhere nearly as offensive as Paypal.

Looking at their options to add banks, they specifically don't allow me to add a US bank account from a Canadian bank. Presumably so they can force Canadian residents like myself to pay this hidden and sneaky "paypal" tax on their conversion.

I can't be the only guy out there with this delimna, so I'm wondering - have any of you non-US entreprenuers gotten around this by opening up a US bank account over the internet, or found another way to stop this sneaky and underhanded practice at PayPal?

**Lucas3677** · 11-24-2006, 09:35 PM

I'm from Canada too, and I've actually never realized it to be honest. I mean, I knew the exchange rate wasn't that great, but I never realized it was so bad. I guess you are right in calling it a "hidden" fee.

**gillian** · 11-27-2006, 11:24 AM

Also Canadian here. I don't use PayPal for payments IN so maybe it's a different thing but when I shop online I have found they convert at 80 cents whereas it's like 84 cents according to the radio. I only noticed that this morning, funny I should come across this thread today!!

**Powelly** · 11-28-2006, 12:35 PM

PayPal is a horrible company...

**JeremyTang** · 11-28-2006, 07:28 PM

Yes, i totally agree... it is really such a shame that everyone uses them and the momentum really just carries them right now - problem is no other competitor out there has that same momentum.

**Frito Pie** · 11-29-2006, 11:59 AM

What hidden fees? Paypal charges a processing fee for most transactions no matter where you live. It based similarly to credit card processing fees and is removed during the transaction. There is an exchange rate fee that sometimes applies as well.

I appreciate paypal. I've used them for over 9 years and have had no problems with them.

**GeorgeB** · 11-29-2006, 12:34 PM

As a counter to that, battered women appreciate their husbands too... Doesn't make the beatings right.

True the PayPal fees are downright extortionate (sp?) compared to similar services and bank fees but for the service they provide it isn't bad. You pay for the convenience. If my bank did all that paypal does online (for the same price) I'd drop paypal in a heartbeat.

So I admit I too appreciate PayPal, fees and all. Most of my online income is advertising so it never touches paypal. The ones that do (ValueClick etc) you don't get charged a fee. I guess the paying companies eat that charge?

I guess if I were a designer or all of my sites main income were subscription based I'd think differently. But the amount of money I save monthly not paying for a merchant account and gateway fees is staggering when you add it up at the end of the year.

**Frito Pie** · 11-29-2006, 02:47 PM

Quote:

Originally Posted by GeorgeB

As a counter to that, battered women appreciate their husbands too... Doesn't make the beatings right.

Uh...I'm sure there is a connection in your mind but I see none. Maybe you've watched too much Oprah?

**petertdavis** · 11-29-2006, 03:26 PM

Can't you keep your Paypal account in US Dollars? Let your bank do the conversion when you withdraw?

**petertdavis** · 11-29-2006, 03:27 PM

and George, yea the wife beating thing was a bit creepy.

**JeremyTang** · 11-29-2006, 03:52 PM

That's the thing, I'd like to use a US bank account (at my Canadian insitution) , but PayPal disallows this. The only alternative I can see is opening up a US account at a US bank account.

Does anyone know if this is possible without a US address?

**petertdavis** · 11-29-2006, 04:04 PM

Heh, they do like to throw hurdles out there, don't they? How about a US Dollar account from a US bank that has a branch in your part of Canada?