Linking PayPal to a USD Account at Canadian Bank— How To Avoid PayPal Conversion Fees

Canadian businesses that offer online payments have likely setup PayPal at one point or another. It is very convenient for both you and your customers.

However, when getting paid in USD you may have trouble withdrawing that money from PayPal in US dollars. PayPal states “Your bank account in Canada must contain only Canadian Dollars”.

What usually ends up happening is you will either setup a USD account at a US bank or link up your CAD account and let PayPal take care of converting your USD to CAD.

Method 1: Setting up a USD account at a US bank

Opening up a USD account at a US bank isn’t that bad, but most banks charge a small monthly fee for a business account. In addition to the small inconvenience of paying for and maintaining two business accounts at two separate banks, you may also have to deal with increased delays to receive the money at your Canadian bank.

Method 2: Let PayPal automatically convert your USD to CAD

That alternative to setting up a USD account at a US bank is letting PayPal take care of automatically converting your USD to CAD. However, what you may not realize is that PayPal tends to give a sub-par rate by ~2.5% when converting your USD to CAD during the money transfer process.

You are probably thinking there must be a better solution. In fact, there is! You can avoid setting up a USD account at a US bank and avoid the sub-par conversion fees by PayPal conversion fees. Interested to know how?

Instructions to link up a USD account at a Canadian Bank with PayPal:

  1. Create a USD account at your Canadian bank (Chequing or Savings)
  2. Link your USD account with your PayPal
  3. Get paid directly into your USD account at your Canadian bank
    *Note: By doing this PayPal will no longer automatically convert your USD to CAD at a sub-par conversion rate, saving you ~2.5% in fees!

Here is an example for linking up a RBC Chequing account:

Country: United States

*Note: Even though RBC is a Canadian bank, put United States.

Bank Name: Royal Bank of Canada
Account Type: Checking
Routing Number: 026004093

*Note: This routing number corresponds to the US routing number for RBC, not the Canadian routing number your bank will likely give you. There are sites that you can search to find your Canadian bank’s US routing number.

Account Number: XXXXXXXXXXXX

*Note: This is your transit # + account #, not just your account number.


Now you can enjoy the convenience of PayPal transferring your money to your USD account at your Canadian bank without additional fees.

*This method is valid as of: Oct 27th, 2015.

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