From what I understand, Paypal won't transfer funds to a US$ account that is Canadian based. I opened up an RBC $US account even though I already have a TD Canada Trust one. I also opened an RBC Access USA account. Paypal WILL transfer $US funds to the RBC Access USA account since it is an RBC Bank in USA that it is going to. Then I transfer funds from the RBC Access USA account to my e-savings $US account that is Canadian based. There are no fees on the e-savings account but the RBC Access USA account requires presently $700 balance to prevent charges. That's what I've done and it worked. It's a pain but it's the only way to avoid the exchange rate loss, as far as I know.
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