CPM Forum > Reference Guides
Paypal (Ebay) - $US Balances- in Canada
Marc-Andre Roy:
There IS a way to transfer directly from your Paypal USD balance into a "regular" USD account. No need for an Access USA in that case. If you want more info e-mail me and I will be happy to help you with this.
TheMonetaryMan:
This post is a report on my conversation and subsequent investigation of the comments made by M.A Roy of RBC.
1st let me say that both M.A. Roy and I agree that the RBC Centura product offering I previously investigated on the forums behalf is the primary solution and preferred over the next idea which I am going to present which was presented to me by M.A. Roy.
Having said that I wanted to provide you a follow up report on the RBC Centura offering that I have been using for several weeks now. The account is working very well, adding funds to my paypal account and withdrawing from Paypal to my RBC Centura account has worked flawlessly. The undetected (undisclosed by RBC during the sales cycle) drawback (an important one at that) is that you cannot just walk into any RBC branch here in Canada and withdraw from your RBC Centura Account. You will need to write a cheque off your account or wire your funds to their intended end destination. They do provide “in branch” set up of the account initially as I witnessed but all further transactions are done either online or over the phone with RBC Centura Reps in the USA. I have simply written cheques on my account to work around this lack of local in branch service. I will also remind you that their online banking offering is very competitive and is complimentary with the account. I have also found their telephone banking to be quite competitive as well.
Now having said that let me present a simple alternative that allegedly (by M.A. Roy) is suitable for those who seek only to withdraw their US$ balances from Paypal into a Canadian based US$ account, yup that is correct. You will cry “wait the Paypal software will not accept a Canada based US$ account"..well with RBC’s help I have learned a secret work around.
It goes like this:
First go into your Paypal account and then click on “Profile”, next then click on “Bank Accounts” under the financial information section. Now on this “Bank Account” screen on your bottom right is an “add” button, click it. Now on this “add a bank account” screen select USA as the country. On the next screen where it asks you to add a bank account in the USA enter:
Routing Number: 026004093
Account Number: XXXXXXXXXXXX (5 digits transit) + (7 digits account number) – You must already have a traditional US$ Canadian based RBC account for this to work.
Now you will note from the paypal screen check sample they assume your account number is 10 digits, however the software will accept account numbers of varying length.
Apparently RBC and JP Morgan in the USA have a relationship in place via the routing number presented above. This routing number allows the transaction to stay in US$ all the way to your Canadian Based US$ account.
Now here is the deal, I am told by M.A. Roy that you can withdraw your paypal balance to your RBC account this way but you cannot do the reverse, you cannot add funds to your paypal account under this arrangement. (The Centura offering you can). In fact you shouldn’t even attempt it I am told or Paypal may just close your Paypal account down.
When I interviewed M.A. Roy he informed me that he has personally tested the facts presented to be true, I have not personally tested the information presented.
I will not be pursuing this alternative presented by M.A. Roy because I am happy with the Centura offering and most importantly I am fearful that Paypal will all of a sudden decide they don’t like this work around and shut down every account using it. I would therefore gently caution professional bankers who post recommendations in the forum to clarify if RBC is advising us or if it is simple person to person counseling. I would be out for blood (and so would you be) if an official representing a bank presented a potentially dubious idea that caused my Paypal account to be closed. That would come at great opportunity cost and financial loss for me.
I have researched Paypal’s policies and I do not see where they say this arrangement is against their policies but they do say that withdrawing your US$ balances to a Canadian based account isn’t possible, well according to M.A Roy it is, but I won’t be the beta tester for this one as I sense the possibility of potential trouble down the road with it.
That’s all folks and thanks for listening in, I found M.A Roy's idea to be quite interesting and would like to thank him for bringing it forward.
Troy
Marc-Andre Roy:
Just a little correction; JP Morgan Bank has nothing to do with RBC. Sorry for the confusion. Here is a text that helps you understand:
If the beneficiary's U.S. dollar account is at RBC in Canada, special coding allows SSA to send the benefits in U.S. dollars through RBC's branch in New York, Routing and Transit Number (RTN) 026004093. RBC set up this branch, which does not itself have accounts, to move direct deposit payments to the correct branch and account in Canada. Because this is a U.S. bank, no special prefix is needed.
In the Depositor Account Number field, the coder keys the 5-digit branch number and the 7-digit account number.
Because this is treated as U.S. direct deposit, Treasury processes any nonreceipt or reclamation actions for these payments. The FO/TSC/PC follows the same procedures as for any U.S. direct deposit nonreceipt, or payment after death. No forms are sent to FRBNY for these actions. These actions by Treasury reduce the workload for SSA. Therefore, this is the preferred method of coding U.S. dollar accounts at RBC.
coinsplus:
I would like to mention that I have tried the linking of my "basic" RBC US Dollar Bank Account (not RBC Centura) with the routing number specified, along with the transit number and account number.
To my delight, the link between PayPal and to my RBC US Dollar Bank Account was successful. PayPal deposited two small deposits ( a total of 46 cents U.S. ). I then verified the two deposits on the PayPal's bank confirmation, and voila! It works!!!
I then did a withdrawal of $5 U.S. from my PayPal account to my RBC U.S. Dollar Bank Account and it showed up in about 2-3 business days. I then did the opposite, and it was also successful.
Going forward, I am very happy to know that I can cash out my US Dollars rather than be charged the bad foreign exchange rates that PayPal offers.
Thanks to the other members for providing the helpful information.
Marc-Andre Roy:
--- Quote ---I then did a withdrawal of $5 U.S. from my PayPal account to my RBC U.S. Dollar Bank Account and it showed up in about 2-3 business days. I then did the opposite, and it was also successful.
--- End quote ---
By opposite you mean that you did a transfer FROM RBC to Paypal and it works? I didn't knew that... When I tried last year, It got declined and Paypal blocked that bank account...
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