Sunday, December 21, 2008

Advice - Banking Issues #2

Tip - Funds transfer from Canada to the U.S.

If you've moved to Canada as a Permanent Resident there is a good chance you are doing so debt free. If you have immigrated on a temporary work permit in relatively quick fashion like myself, you may still have U.S. debt. If so, that debt still needs to be paid off each month and you may find that you have an agreement with your U.S. creditors to do so only in U.S. funds and ONLY from an account in a U.S. bank. In other words, your U.S. creditor may not accept payment using your Canadian U.S. dollars checking account. And, as mentioned in a previous post, one might wish to keep their U.S. checking account open for just such a situation.

If need be, getting money into that U.S. account from Canada might prove frustrating. Money transfers between Canadian and U.S. banks take approximately 21 days and you'd better hope nothing goes screwy. You may not make your payment due date if it does. 

We found Paypal to be a quicker, painless method for transferring money from our accounts in Canada to the U.S. Using Paypal can cut the transfer time from 21 days to as low as six or seven. The funds transfer from your Canadian account to Paypal takes approximately six days. It may be the same day to an additional couple of days to move your money from Paypal to the U.S. bank account. Paypal will do a conversion. When we checked the rate it was one penny higher than that published on the internet. Verify the bank and Paypal links by transferring an insignificant amount of money the first time.


Anonymous said...

BEWARE OF PAYPAL (and it's parent company ebay)!!!

ebay owns Paypal and per Paypal's User Agreement amendments, many people are getting caught in the trap, which now allows Paypal, at it's "sole discretion" to withhold users funds for 21-180 days without arbitration.

Since ex-CEO, Whitman, and current CEO, Donahoe, began implementing their "Disruptive Innovation" SCHEME against users, the site is not worth visiting. There's a reason that Amazon has beaten ebay in unique visitors to their sites and why ALL of the alternative sites are growing rapidly, while ebay continues to decline.

With ebay's new manipulative policies which includes FORCING all sellers to LIE about bad buyers and FORCES the vast majority of users to use Paypal ONLY, users are fleeing from ebay in record numbers.

To see what users are actually experiencing, do an internet search of

"Ebay Stockholders and Sellers Calling For Immediate Termination of John Donohoe CEO Petition" at petitiononline.

Learn what ebays own employees are reporting about the EXTREMELY POOR upper management by going to glassdoordot com.

ErinOrtlund said...

Yes, we pay DH's student loan through direct debit on our US checking account. We left some money in it, and then financial gifts from relatives get sent to the US account so it stays replenished. I've done a couple wire transfers from the US to Canada and it didn't take but a couple days. Maybe it takes longer going the other way?

Tony H. said...

Another possibility for US->Canada immigrants might be to open a US account with one of the Big 5 Canadian banks that own US banks. This includes TD and RBC, and perhaps others. These accounts are aimed at Canadian snowbirds who want to be able to write US checks when they're in their Florida condo for the winter, but I imagine they could conveniently be used for paying residual US debts from Canada. These are real US-based-bank US dollar accounts, but you can also transfer between your CA and US accounts online. I haven't used it, but I see ads for this service when doing my RBC online banking.

Zoë Gemelli said...

Hi guys! I've been an on-again-off-again reader of your blog for a couple of years. I'm just about to move back to Canada from the States and have to maintain U.S. credit card payments. I'm wondering if you opened a second PayPal account in Canada in order to do the transfers or if you were able to just have the one account have both banks? I imagine I'll need a second PayPal account but wanted to ask you since it seems like you've been doing this for a while. Is it still working out? Any recommendations for people moving to Canada from the States in regards to banking? Thanks so much! Zoë