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Thread: Using a PayPal account from a different country - fee differences

  1. #1

    Default Using a PayPal account from a different country - fee differences

    I'm posting in this category since this is indirectly related to eBid but isn't actually eBid support related.

    I've noticed that Chinese sellers on eBay will often use a Canadian PayPal account. Presumably the 30 cent CAD transaction fee (if it's the same in Canada) is less money than 30 cents USD.

    In the USA you can open a PayPal account. You may or may not be able to receive money for merchandise sales but eBay payments and friends and family type transfers may work. Then it needs to have some kind of card registered to it to be partially confirmed. Then you can receive friends and family payments and eBay sales but not non eBay sales as far as I know. Once you confirm it with a bank account then all limits are removed. After you have a number of sales they'll require a social security number stating that IRS regulations require them to have it for a certain amount of sales (around $20,000 annually and a certain number of transactions), even though you're an order of magnitude under that. Who knows what they do with your SSN after that.

    So other countries may have very different requirements and fees. Has anyone used an account from a different country to avoid fees? How about a friend in that country that handles your payments?

  2. #2

    Default Re: Using a PayPal account from a different country - fee differences

    Just curious - How do you know that the seller is from China and is using Canada PayPal? Could it be an actual Canadian who is a drop shipper of items from China?

    If you are positive that the seller is in China and using Canada PayPal to avoid fees, report them. In the end we ALL pay for others' fraud and abuse.

  3. #3

    Default Re: Using a PayPal account from a different country - fee differences

    I didn't think of that. The package shipped from Asia, but in PayPal it showed a USD to CAD conversion.

    Report them for what? Avoidance is legal, evasion is not. Is it against the rules to have a Canadian business or Canadian person handle payments while operating the business and shipping from China?

    As far as fraud and abuse go, allowing eBay, the Chinese, and US postal services to have an agreement where it costs less in China to send a small packet to the US than it does for someone in the US to send a letter domestically is the first problem that needs to be addressed.
    Last edited by stopusingebay; 26th June 2017 at 05:46 PM.

  4. #4

    Default Re: Using a PayPal account from a different country - fee differences

    The fee for PayPal Canada is 2.9% plus 30 cents.

    Exchange rate. $10 Canadian is $7.55 US Dollars.

    30 cents US is 40 cents Canadian.

  5. #5

    Default Re: Using a PayPal account from a different country - fee differences

    Quote Originally Posted by stopusingebay View Post
    I didn't think of that. The package shipped from Asia, but in PayPal it showed a USD to CAD conversion.

    Report them for what? Avoidance is legal, evasion is not. Is it against the rules to have a Canadian business or Canadian person handle payments while operating the business and shipping from China?

    As far as fraud and abuse go, allowing eBay, the Chinese, and US postal services to have an agreement where it costs less in China to send a small packet to the US than it does for someone in the US to send a letter domestically is the first problem that needs to be addressed.
    I'd say it's probably a drop shipper who lives in Canada, sells to the US and orders the item shipped from China. You mentioned "fee avoidance", which is against the rules on the bay and Pay Pal but if it is a drop ship case, I doubt there is any fee avoidance going on.

    I agree that the tri-lateral agreement needs to be addressed and IMO is why USPS is constantly raising our rates, but I'm not holding my breath on any changes soon.

  6. #6

    Default Re: Using a PayPal account from a different country - fee differences

    There are a lot of Chinese living in Canada, especially on the west coast. A person could certainly live in Canada and market from here and have a relative living in China who sends out the goods via the less expensive Chinese postal options. I don't see where there would be anything wrong with that.

    It is frustrating that postal costs in Canada / United States / etc. are so expensive and that a small online seller has difficulty being competitive in that regard. But, that's what has evolved over the years.

  7. #7

    Default Re: Using a PayPal account from a different country - fee differences

    Quote Originally Posted by Shesawaya38485 View Post
    You mentioned "fee avoidance", which is against the rules on the bay and Pay Pal
    So if I sign up for the micro transaction rate on a PayPal business account I'm breaking the rules by avoiding the fee! That's kind of catch all language for if we don't like it we'll close your account.

  8. #8
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    Default Re: Using a PayPal account from a different country - fee differences

    Quote Originally Posted by stopusingebay View Post
    So if I sign up for the micro transaction rate on a PayPal business account I'm breaking the rules by avoiding the fee! That's kind of catch all language for if we don't like it we'll close your account.
    No. If you sign up for the micro transaction rate you are signing up for one of two options provided by Paypal.

  9. #9

    Default Re: Using a PayPal account from a different country - fee differences

    Quote Originally Posted by tony41 View Post
    No. If you sign up for the micro transaction rate you are signing up for one of two options provided by Paypal.
    Looks like I need to research "micro transaction rate"! LOL!!! (Adds to the "To Do" list)

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    Default Re: Using a PayPal account from a different country - fee differences

    Quote Originally Posted by stopusingebay View Post
    I'm posting in this category since this is indirectly related to eBid but isn't actually eBid support related.

    I've noticed that Chinese sellers on eBay will often use a Canadian PayPal account. Presumably the 30 cent CAD transaction fee (if it's the same in Canada) is less money than 30 cents USD.

    In the USA you can open a PayPal account. You may or may not be able to receive money for merchandise sales but eBay payments and friends and family type transfers may work. Then it needs to have some kind of card registered to it to be partially confirmed. Then you can receive friends and family payments and eBay sales but not non eBay sales as far as I know. Once you confirm it with a bank account then all limits are removed. After you have a number of sales they'll require a social security number stating that IRS regulations require them to have it for a certain amount of sales (around $20,000 annually and a certain number of transactions), even though you're an order of magnitude under that. Who knows what they do with your SSN after that.

    So other countries may have very different requirements and fees. Has anyone used an account from a different country to avoid fees? How about a friend in that country that handles your payments?
    I used to have a Wells Fargo bank account in the US, and registered the debit card on my UK Paypal account. It ran a dollar and a sterling tally and if I bought something from the US I used my US card to pay. I don't think there was a difference, I didn't need a social security number as I had UK residence and a national insurance number.
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