Managed Payments & Selling in Different Currencies

[sin-n-dex]

I tried to post this in the payments board, but got no answer... seems I get better answers on the selling board.

If you sell on various eBay sites in different currencies, are you able to transfer them into your home currency for withdrawal, or do you withdraw the funds in that currency and let the bank decide what you receive?

I have a business bank account in Canadian funds (my personal account is in New York), and would like my funds to be withdrawn in Canadian currency to make it easier for me to pay the B&M store by cheque, but all my sales are in US funds so I don't know how that's going to work.

I haven't been invited to MP yet, but my partner has... I'm trying to anticipate how MP is going to change how I deal with the financials on here. I'm very not happy about the idea of moving away from Paypal. Paypal allowed me to withdraw to the bank account of my choice pending on the purpose of the withdrawal, but it seems like with MP you can only tie in one bank account where funds are automatically deposited.

C.

[azh-71]

My guess would be that eBay will default to your registration address.  Also, wait till you see the "international" fees for selling to users registered in foreign countries.  Yes, regardless of the currency they pay in.

[klhmdg]

The fees for foreign currency is excessive AND unlike PayPal sellers can not refuse other currency. 

PayPal allowed US Dollar only... MP does not and sellers will never know until they see the fees.

Should be the buyer who pays these fees BUT the seller will again take it in the shorts.

[inhawaii]

Shame on you posting a payments question on the selling board.    

Now go to your room!   😉

[sin-n-dex]

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@azh-71 wrote:

My guess would be that eBay will default to your registration address.  Also, wait till you see the "international" fees for selling to users registered in foreign countries.  Yes, regardless of the currency they pay in.

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That's a bit confusing. They asked for the registration address which is my location in Canada (because I live here, and my business is registered in Canada). I have a business bank account here.

But from having lived in the US 20 years ago, I have a personal bank account in US funds. If they aren't planning to convert it into Canadian funds then I would need to attach my US account, but because I live in Canada, I'm limited in access to using the US account (no online banking, and when I call in they ask security questions that were relevant 20 years ago, like my passport number, which I can't answer now because I've changed passports four times since then). I would go in person to the bank to sort that out, but the border is closed, so that isn't happening soon.

Can you elaborate on the international fees? I'd be selling on the dot com site (which is the US site), so most buyers are in the US. Everything listed will be in US funds. If the incoming payments automatically convert into Canadian currency when they hit my account then it will change my bookkeeping (to something a lot simplier because there won't be two currencies to manage anymore).

C.

[sin-n-dex]

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@klhmdg wrote:

The fees for foreign currency is excessive AND unlike PayPal sellers can not refuse other currency. 

PayPal allowed US Dollar only... MP does not and sellers will never know until they see the fees.

Should be the buyer who pays these fees BUT the seller will again take it in the shorts.

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My Paypal was set up in 2001 when I lived in the US, so it's my home currency there. I have other currencies set up (because I will spend the money after I receive it by purchasing on the site).

If you could elaborate on these fees it would be helpful. The B&M store wants updates on this change so we can figure out any changes we need to make with our operating.

C.

[sin-n-dex]

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@inhawaii wrote:

Shame on you posting a payments question on the selling board.    

Now go to your room!   😉

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I'm already in my room 🙂 My bed is the most comfortable place to put my feet up and list auctions.

C.

[klhmdg]

to be in MP you will need to have a US checking account and a SS# for US tax purposes.

As for the fees... Im thinking it is extra 3.2% but from what I can figure if the buyer is in a country with a VAT (like GB at 24%) the fee is on the VAT also, just like state taxes... So the MP fee is 3.2% higher on foreign payments AND also the total includes VAT.

This is going to make 12+% be 15+% AND usually the highest tax in the US is 10% but some countries are charging up to 24%...

Someone correct me if this is incorrect....

I will be looking at no foreign sales BUT there is no way to stop someone from buying and using a forwarder... so again the seller would pay more in fees with no way to stop it.

[azh-71]

You don't understand.  Let's say I am an American seller, and you are a Canadian buyer.  You purchase from me, pay me from your US-based bank account, and have your purchase shipped to your PO box in Buffalo,  so the entire transaction starts and ends in the US, with no border crossing or currency conversions.   But because you are located outside the US, eBay hits me with an additional fee.   I assume the same will hold true for you, even if you receive money from American buyers in your "Buffalo" account and cross the border to ship with USPS.

[sin-n-dex]

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@klhmdg wrote:

to be in MP you will need to have a US checking account and a SS# for US tax purposes.

As for the fees... Im thinking it is extra 3.2% but from what I can figure if the buyer is in a country with a VAT (like GB at 24%) the fee is on the VAT also, just like state taxes... So the MP fee is 3.2% higher on foreign payments AND also the total includes VAT.

This is going to make 12+% be 15+% AND usually the highest tax in the US is 10% but some countries are charging up to 24%...

Someone correct me if this is incorrect....

I will be looking at no foreign sales BUT there is no way to stop someone from buying and using a forwarder... so again the seller would pay more in fees with no way to stop it.

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@klhmdg 

Paypal doesn't require me to have an SSN. I live in Canada, they don't give SSNs to Canadian Citizens because we're not allowed to work in the US (that's what the SSN is for). Since I don't have a physical address in New York, it's a PO Box, I'm registered on eBay.com with my Canadian address (the US one shows up on invoices) and I pay my fees to eBay Canada.

The reason I'm asking, is I sell everything in US currency on the dot.com site. So does that mean all my US sales will be converted into Canadian currency? If they're converted into Canadian currency, why do I need a US checking account? (I have one BTW, but it's difficult to argue with telephone banking when I call in that foreign nationals don't have SSNs, and since the physical location of the business is in Canada, I don't need a US Tax ID).

I do however have a Canadian Business Identification Number which was provided to eBay to be able to convert this account from a personal account into a business account. Paypal doesn't require anything like that from me, but we have the SIN which is the equivalent of the SSN in Canada. Paypal never required this though, nor did eBay.

C.

[sin-n-dex]

I've received some information from a CSR, because it's a unique situation (being registered on the US site but living in Canada), and I learnt the following:

- Withdrawals are in the same currency you always deal in, so since I pay my fees in US dollars and get paid in US dollars (as my home currency), the withdrawal will occur in US Funds

- That being said, it can be any bank account, and the bank will convert it (which means I don't have to worry about eBay's exchange rate, it's the bank that decides how much I get)

- That being said, Canadians can get US dollar accounts in Canada (not sure if that can be used, I will likely find out when it's time to register and I try to use one)

- Because I have no SSN, I cannot use my US Checking account in New York

- Everyone in the world who doesn't have an eBay in their country and registers on the dot com site will also need to register for managed payments, if eBay has your registration address outside the US, the SSN is not required (and apparently I'm far from alone with this, but my account was registered in 1998 when there was no Canadian eBay site, which is why I'm on the US site)

C.