To reply to your PayPal customer service interaction I call BS (on PayPal)! Generally the contact person or customer service agents know very little when it comes to this sort of stuff as it is specialized or outside their knowledgebase. They are really there to walk you through using and setting up your account and to troubleshoot on a basic level. Everything else needs escalation (when they put you on hold to reach out to someone else or forward you to someone else). The USD PayPal to a generic US based bank account works. I can't speak for Wise but believe it is virtual and there could be an issue with how that account is setup and therefore how the money is forwarded. Did you sign up with Wise as a US or Canadian person? I think Wise might be the amazon solution for selling on amazon.com without an account in the U.S. Again i don't use and never needed to use a virtual account program like Wise so my knowledge is limited and a guess.
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I don't use Wise, I use TD cross border banking. The USD PayPal money transfers to TD Bank (USA). I can transfer between TD Bank and TD Canada Trust with no fee and keep everything in US funds. We transfer monthly sometimes 2 or 3 times. It was done in December and plan to do another transfer on Tuesday.
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