US to CDN exchange. A Canadian based business selling to american consumers

DFrizz3
Contributor
Contributor

Hello,

 

So I am selling something to a consumer in America so I am wondering if Paypal does an exchange so when it enters your account it is received in CDN dollars. The situation is that I wanted 20 for an item and the customer said they would pay 15 American. would the funds that are deposited in my paypal account be 15 cdn or would it exchange it into 20?

 

Thanks

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sharpiemarker
Esteemed Advisor
Esteemed Advisor

@DFrizz3 wrote:

Hello,

 

So I am selling something to a consumer in America so I am wondering if Paypal does an exchange so when it enters your account it is received in CDN dollars.

 


Yes, PayPal does convert foreign currency to your local currency unless you have created a specific foreign currency balance that can hold the currency in your PayPal balance. 

 


@DFrizz3 wrote:

The situation is that I wanted 20 for an item and the customer said they would pay 15 American. would the funds that are deposited in my paypal account be 15 cdn or would it exchange it into 20?

 


No, it would not be converted to 15 CAD or 20 CAD. That's not how conversion works. Currency conversion/exchange doesn't just change the form of currency but also changes the actual value of the money. Depending on the strength of your country's currency and PayPal's exchange rate, conversion fees, and PayPal fess, you may get less than $20 CAD or more than $20 CAD

 

You can invoice in USD and accept the $15 USD on face value by creating a USD currency balance within your PayPal account to hold USDs, but if you transfer it to your CAD bank, it will need to be converted from USD by PayPal and it may not be 20 CAD after that as PayPal's exchange rate plus conversion fees aren't the best. Plus you also have to take into account the PayPal fees (cross-border rate) to receive the money to begin with.

 

If you want to receive $20 CAD face value, you have to invoice that amount in CAD, so there's no currency exchange/conversion fees, nor necessary to create a foreign currency balance on your end as the buyer will have to worry about currency exchange/conversion on their end during payment or they don't buy if it turns out to be more than 15 USD for them.

 

My payments are always in my local currency so I don't have deal with handling various foreign currencies and their exchange/conversions and I get what I ask for in terms of amount. No matter if I'm using PayPal buttons, shopping cart, money request, invoices, PayPal.me link.

 

 

 


Kudos & Solved are greatly appreciated. 🙂
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