Paypal charged 4% extra to convert Canadian funds!!

[Gunsmoke]

So today I buy some 1931 Chrysler parts from the USA for US$200 incl shipping (thanks Gary). Exchange rate today into Canadian dollars is $1.32, so I would expect my account to be debited $264Can. No, paypal debits account $274.50 (1.3725)or about a 4% fee for conversion. Imagine, the computer goes into my account, draws out the money and charges me 4% to convert it to US funds. They even have the gall to tell me in fine print at bottom of invoice that "paypal makes money on currency conversions". 4% of purchase price , really! Of course they also charge a fee to the seller. Not a big amount, but next time I will explore ways to avoid it. Can you spell rip-off.  

Edited February 2, 2020 by Gunsmoke (see edit history)

[3macboys]

I have a US Funds bank account that I used to be able to deposit from my US PayPal balance into directly, and then I could transfer between accounts into CDN funds without paying the conversion costs by either the bank or PayPal but now they don't allow that anymore either.  It has to go into a CDN currency account because that's where I am.  I think the only way around the fees for us is if your bank has US branches you maybe able to open an account there.  Now I keep a balance of US funds from online sales and use that to buy stuff out of the states or to pay for things like my AACA membership.  Bit frustrating but beats paying the conversion twice.  

[Joe in Canada]

That is OK seeing I sold a lathe last Friday evening at 8:30 pm and he paid with pay pal. I am in Ontario and he had a transport here at 7:30 am for pickup going to the New Brunswick next morning so it was a Canadian transaction. Guess what pay pal converted it to US funds for some reason and now I am trying to get it back without all the fees.  

[hidden_hunter]

I always pay in USD, my credit card generally has a much better exchange rate than paypal offers. 4% on a large transaction is a ridiculous amount 

[mercer09]

nothing new Gunsmoke. they have been doing this for years. 3 % US and 4 % international............

[Mark Gregory]

Good to know this information. I always send a Canadian Bank money order which works with a American Bank in my case Wells Fargo.

Never had any trouble. But the Dollar exchange costs are high along with the Custom Fees when the part comes in.

[3macboys]

10 minutes ago, Mark Gregory said:

But the Dollar exchange costs are high along with the Custom Fees when the part comes in.

Just curious if the parts you are getting are being shipped by mail or courier, particularly one with brown trucks?    

[mercer09]

Mark, our banks bang us with your Canadian money orders. last one I cashed cost me 10. to use.

[keithb7]

I too am in Canada and am feeling victim to service charges, fees, jacked up excessive freight charges...More and more I need to get creative to source parts for my old cars. The average Ebay seller is wants $40 US funds for a flat envelope in the mail to Canada. Order a flat, thin rear tranny seal that fits in a padded mailer. They want $40 for freight. Get a couple brake wheel cylinder cups, another $40 freight bill. Two packages with barely any parts in them totalled $80 USD freight costs. This is reality and happening to me.

 

Add the Paypal fees, exchange rates mark up, Canada Customs arbitrarily tacks on $10 for doing nothing, not even opening your package. They call it a customs handling fee. For what? It's becoming expensive as the majority of maintenance and rebuild parts are easily sourced from the USA. This is certainly not helping our old restoration hobby here in Canada.  It is in fact helping kill it.

Edited February 2, 2020 by keithb7 (see edit history)

[Joe in Canada]

6 minutes ago, keithb7 said:

Canada Customs arbitrarily tacks on $10 for doing nothing, not even opening your package. They call it a customs handling fee.

That may be a broker fee and is why I only use the US postal. 

[3macboys]

4 minutes ago, Joe in Canada said:

That may be a broker fee and is why I only use the US postal. 

I just read through some of this : https://www.canadapost.ca/tools/pg/manual/PGcustoms-e.asp#1382719

 

Canada Post will tack on a fee of 9.95 but there are exemptions under NAFTA and I would think any auto parts should be covered.  Ask the shipper to label them as Antique Auto Parts and you should be good to go and as Joe says insist on USPS.  

[keithb7]

16 minutes ago, Joe in Canada said:

That may be a broker fee and is why I only use the US postal. 

 

I only ever ask for my parcels and envelopes to be shipped via US Post. Couriers are even are more ridiculously higher priced. I never use them. International mail is subject to inspection by Canada Customs. They x-ray scan parcels to check for illegal items. They can randomly look at a small padded envelope. On it is a customs declaration sticker that the shipper has to fill out. For example the shipper may describe the items in the package as "used vintage car parts". The shipper might declare a value of $50 USD on it. The Canada Customs officer may feel the envelope as it goes though processing at the customs office and think.."Sure, it feels good". He/she sees that it looks good on the x-ray, and lets it go through without any further steps. Completely at random, he/she may tack on a $10 CAD processing fee. For doing nothing.  They will also randomly send you an invoice for GST charges. Every single time they do this they tack on the additional $10 Customs handling fee. My experience tells me that they generally won't bother collecting GST unless the value of the good is about $100 or more.

Edited February 2, 2020 by keithb7 (see edit history)

[Mark Gregory]

Here is a situation I had a few years ago for a car part no larger than a pin to hold your wrist strap on to a watch.

 

 The maddening thing is he would not ship the part USPS he had to use Fedex . Canadian Customs charged me $60 handling fee since it came in by Fedex plus duty . There is no $60 fee with USPS except the duty .

[3macboys]

The one other option is a US post box.  We use one in Port Huron, Mich.  I had an entire floor pan sent there with free shipping in the US, drove down to pick it up, total time in the US was 30 minutes and at the border declared it and sent on my way - no duties, taxes etc.  

[1912Staver]

That's the method I use as well. But to be practical you need to live reasonably close to the border. Almost any U.S. town located close to the border will have a company that specialises in shipments. They are usually a agent for UPS as well as providing a package drop off for receiving things for Canadians.. 

The one I use has me use my name and a client number they assigned me and their address. To an ebay seller or anyone else I have bought from it looks like I am someone living in Washington State. When a package comes in they email me, I go pick it up, and pay a small fee { $3.00 and up depending on the size of the package }

and take it myself through Canadian Customs. Anything below about $250.00 generally doesn't interest Customs and they send me on my way.

 Post boxes are fine too but they are often in short supply and have a waiting list to sign up. As well they have a monthly fee so fine if you use them frequently but a bit expensive if you only buy 5 or 6 things a year.

If you don't live close to the border this method won't be practical . The costs of direct shipment are punishing, but after all we Canadians all earn $80 or $90 an hour ...don't we ? UPS and Customs seems to think so.

 

 

Greg in Canada

[gossp]

I once had some dealings with a gentleman in Mexico that clearly did a lot of restoration work. He would schedule all his shipping to happen together and spend one night in a Hotel in Texas.... where all the parts were shipped over the course of the weeks prior. 
 

Not a solution for a Single padded envelope with a gasket in it, but something to consider when you need nearly a pickup bed full. 

[bryankazmer]

your bank charges a fee to convert currency too - either a direct fee, or different buy and sell exchange rates.

[36 D2 Coupe]

Selling into the US, I request a cheque in US funds ands our banks don't flinch. I got a $US account with my bank and deposit the cheque directly with no hassles or extra fees.

However sending money to the US, their banks don't like Canadian cheques. I get a bank draft ( ours uses Wells Fargo) and that seems to work. I have not been told that US banks charge a $10 handling fee but maybe the sellers are too kind to complain.  Please clarify this for me.

Being close to the border, we use a parcel pick up depot in Port Huron MI  as mentioned above and it cuts down the shipping costs, no brokerage fees, just the sales tax on the declared value and no duty on antique car parts.

On mailed items, ALWAYS USPS, never courier unless you really are a masochist.

[keithb7]

About 4-6 times a year I drive 3.5 hours one way to pick up all my parts that are held a shipping company right beside the Can/USA border. I literally park on the CDN side, talk a dolly with me and walk into the USA. I pick up all my parcels and walk back through the border into Canada. Sometimes I pay GST, sometimes I do not. The USA customs guards give me a hard time. They shake their head and actually give me attitude asking why the h e l l would anyone drive 3.5 hours from the interior of BC to pick up vintage auto parts? I've yet to go into the little room for a glove test, but it seems to be getting closer with each passing year. I save a lot of cash in freight and related charges. Easily paying for my fuel, time and wear and tear. I have family in the area too so we visit and I often spend the night and have too many libations. It works, but waiting 3 months for my next trip to pick up parts is not always ideal. However I do, do that and it keeps more money in my pocket for other things for my cars.

[1912Staver]

I am close to metro Vancouver so U.S. Customs sees a steady stream of Canadians crossing for parcels all day long. A new place up  from the one I have used for years now has unmanned , 24 hour pick up available. So if you have time on your hands at say 3 AM you can head down and avoid the daytime line up at Cstoms.

The U.S. agents seem to mostly be concerned that the items are for personal use rather than a business .  I almost always buy gas as well, every penny counts these days.

 

Greg

Edited February 2, 2020 by 1912Staver (see edit history)

[Guest]

2 hours ago, 36 D2 Coupe said:

However sending money to the US, their banks don't like Canadian cheques. I get a bank draft ( ours uses Wells Fargo) and that seems to work. I have not been told that US banks charge a $10 handling fee but maybe the sellers are too kind to complain.  Please clarify this for me.

My experience as well.

I get charged a customs or brokerage fee about once every four or five years.  I always pay it and go directly to the customs office with the unopened package.  Invariably I receive a refund cheque from the Government in a month or so.  Ten or fifteen packages a year and  I have not paid a fee for duty, customs or handling in over fourty years that has not been refunded.

You folks in the US do not have it as bad as the British.  I sell and have sold books to a man in England who uses the Bank of Scotland.  They charge him 20 pounds to write a money order/draft that is not in pounds or euros.  He sends me a regular cheque in pounds and my bank TD cashes it at the days rate of exchange with no fees at all.

[viv w]

My sister in Canada often buys bits for me. We bought a set of guages and paid with a cheque from toronto Dominion. The check was on a USD denominated account and the USA bank charged $20 commission. The seller was seriously pissed off, but it was the banks fault for not reading the cheque correctly. It was resolved by complaining to TD bank who resolved the issue.

 

FOR THOSE OF YOU LIVING IN CANADA, YOU MAY NOT BE AWARE OF THE FOLLOWING, VIv.

Some information about duty and brokerage fees into Canada

Auto parts for vehicles >25 years old are duty free into Canada no matter the country of origin. Ask the shipper to indicate HS code 9966.00.00 on the customs declaration. This Tariff Item of the Customs Tariff gives duty free status to "articles for use solely or principally with those vehicles manufactured more than 25 years prior to the date of importation". Information about the interpretation of this tariff item can be found at http://www.cbsa-asfc.gc.ca/publications/dm-md/d10/d10-15-20-eng.html

As stated in this memo, eligible articles are limited to those solely or principally for qualifying vehicles and would have to be in keeping with the original appearance and configuration of the vehicle. These may be either original articles or reproductions.

Articles that incorporate modern safety features or other technological developments can be considered under tariff item No. 9966.00.00, provided that they are solely or principally for use with qualifying vehicles and do not compromise the original configuration of the vehicle. An example would be disc brakes designed specifically for a 1936 Chevrolet Coupe.

General purpose articles that can be used in vehicles covered and not covered under tariff item No. 9966.00.00 are not eligible for consideration.

So reproduction door panels would be eligible as they are specific to a vehicle over 25 years old, but tires that fit both a TR6 and a 2011 Ford would not.

On the brokerage/handling fee issue, Canada Post will collect a fee of $9.95 as a handling fee, if duties and/or taxes were collected on the shipment.

On shipments with a value of <$2500, there are ways to avoid the brokerage fees charged by UPS, Fedex etc, by clearing the shipment yourself. There are 2 ways to do this:

1. Prior to receiving your shipment, you can contact the courier company and inform them of your wish to self-clear any shipments that are addressed to you and on which brokerage fees are applicable. The company will explain their procedures to you.

2. As an alternative, when a casual shipment is delivered to you, you can refuse delivery and advise the courier company of your intention to self-clear directly with the CBSA. In this case, please ensure that you take note of the unique shipment identifier number on the package, as the shipment will be returned to the courier’s warehouse.

With both options, you will need to visit your local CBSA office to complete a B15 (Casual Goods Accounting Document) and provide them with specific details, including the courier’s name, the unique shipment identifier number, a description of the goods and their value so that the CBSA can correctly assess the goods. This information is usually indicated on the shipment’s invoice, which will be provided to you by the courier company. When you have paid the applicable duties and/or taxes to the CBSA, you will be given an official receipt indicating that the goods have been accounted for. You will need to present this receipt to the courier’s warehouse where your shipment is stored, in order for the courier to release your shipment to you.

Despite what you may be told by the courier, you have the right to do this and clear the goods yourself. See http://www.cbsa.gc.ca/publications/dm-md/d17/d17-4-0-eng.pdf and in particular paragraph 56.
 

[mercer09]

Because of shipping costs and the cost of cashing money orders here, I stopped shipping to Canada about 10 years ago.

 

sorry to say it, but just not worth my time. I dont ship overseas any longer either. only sell in the US, concerning parts.

 

I will sell a car worldwide, but the buyer must do ALL of the work.

[36 D2 Coupe]

55 minutes ago, mercer09 said:

Because of shipping costs and the cost of cashing money orders here, I stopped shipping to Canada about 10 years ago.

 

sorry to say it, but just not worth my time. I dont ship overseas any longer either. only sell in the US, concerning parts.

 

I will sell a car worldwide, but the buyer must do ALL of the work.

Now I understand why some vendors don't want to ship to Canada if the buyer wants to use a money order. Your US banks really can gouge you if they choose. Are some banks worse than others? Is it just cashing ANY money order or does it relate only to money orders originating outside the US? Bank drafts I send are through TD Bank which has US branches and draws on Wells Fargo. I have not been advised of problems going this route. However with so many smaller local banks that rarely see out-of -country transactions, perhaps staff unfamiliar with handling these MOs just default to slapping on a hefty charge for protection.

[keithb7]

Sorry to go on about this, I am on some sort of mission here to accomplish nothing but vent:

Today I bought a nice 6 volume set of Automotive Engineering books from 1931 on Ebay. I am having them shipped to a location inside the USA. I will walk across the border and pick them up there myself.

Here is what we are fighting up here in Canada. Option 1 USPS to location inside USA. Price for shipping $7.60 US funds. Option 2 ship to my door in Canada via USPS: $71.45 US dollars. x 1.35 exch rate equals $96.47 Canadian. Why? Does this not seem ridiculous for a box with 6 books in it? Absolute BS. 

 

This has nothing to do with tax or duties. Just dropping it in the mail.

You can see how quickly it makes sense for me to ship all my stuff to a USA drop box, and drive 3 plus hours each way to go retrieve everything every couple of months.

 

 

 

Edited February 3, 2020 by keithb7 (see edit history)

[3macboys]

It's the media mail option that they have in the US that Canada Post doesn't give us.  I sell manuals and some of the prices that US suppliers can offer is unreal.  I'll never understand Canada Post rates - I was quoted a price to ship a book 100 km away from me that was more expensive then sending a heavier book from Ont to Sask.

[1912Staver]

3 hours ago, keithb7 said:

Sorry to go on about this, I am on some sort of mission here to accomplish nothing but vent:

Today I bought a nice 6 volume set of Automotive Engineering books from 1931 on Ebay. I am having them shipped to a location inside the USA. I will walk across the border and pick them up there myself.

Here is what we are fighting up here in Canada. Option 1 USPS to location inside USA. Price for shipping $7.60 US funds. Option 2 ship to my door in Canada via USPS: $71.45 US dollars. x 1.35 exch rate equals $96.47 Canadian. Why? Does this not seem ridiculous for a box with 6 books in it? Absolute BS. 

 

This has nothing to do with tax or duties. Just dropping it in the mail.

You can see how quickly it makes sense for me to ship all my stuff to a USA drop box, and drive 3 plus hours each way to go retrieve everything every couple of months.

 

 

 

 

A major change happened several years back when ebay decided everything had to be sent priority.  Prior to that smaller things could be mailed to Canada quite reasonably. I would check both options; direct to me in Canada, and using the U.S. destination. Often the direct was no more by regular service mail. But priority is a big upcharge over standard. As well USPS has in general seen some rate increases.

I now buy quite a bit less than I once did. Mostly due to the dollar but also all the other costs that are being tacked on.

 

Greg in Canada

[mercer09]

HI 36,

has nothing to do with cashing a money order. I use TD, Wells Fargo, Liberty and M and T Banks.

everything to do with cashing a money order or cashiers check from outside the US. That is where they hit us. Same with bank wires. Wells Fargo now charges I believe 30. for a bank wire. Others are higher. When selling a car, not a big deal, but 100. part- not worth talking about.

 

I really do feel for you guys, but not worth losing money on my end, to try and be a nice guy.

Sold a 31 chevy steering column to a fella in Canada for 50. years ago. We were on the phone for 40 minutes, trying to make sure everything was correct. My phone bill was 40.............that didnt happen again.

Sent a pair of 52 Buick wagon lower gate hinges to Canada about 5 years ago. very very small box but heavy. charged the fella 30. and found out there was only flight shipping at that point through the usps. was charged 55. for that tiny box. Mentioned it to the buyer, who I gave the hinges to for a song.

he never responded. Wasnt like I was going to charge him the extra 25. but he never offered or responded. So the next time he needs a 52 wagon part..........guess what?

yes, it sucks in both directions.

[Summershandy]

I'm fortunate to be a 30 minute drive to the border. I have everything shipped there. Duty is 13%. If I can keep it under $100 they usually say "have a nice day." I'll bring my yellow lab for a buffer....makes the meanest border guard smile. The only thing that kills me is our exchange rate if something is a high dollar.