buying or selling outside the USA

[Ken Robb]

I suppose it varies depending on the countries involved and USA to Canada or vice versa would be more likely than inter-continental deals. I read in an earlier post that USPS to Canada is quite good and rarely causes Canadian authorities to try for duties/taxes on small items but frames and bikes are not so easy.

I haven't used Pay-Pal for years since my account was hacked and drained. Would I be correct in guessing that PP adjusts charges/credits to account for exchange rates? Another forumite and I were working on a sale from me to him in Canada but the deal was more trouble than it was worth. He didn't want the hassle of getting a check for me in US Dollars and I didn't want to take the hit of converting a check in Loonies to US Bucks at my bank.

Is there an easy way to do this?

[tuscanyswe]

I suppose it varies depending on the countries involved and USA to Canada or vice versa would be more likely than inter-continental deals. I read in an earlier post that USPS to Canada is quite good and rarely causes Canadian authorities to try for duties/taxes on small items but frames and bikes are not so easy.

I haven't used Pay-Pal for years since my account was hacked and drained. Would I be correct in guessing that PP adjusts charges/credits to account for exchange rates? Another forumite and I were working on a sale from me to him in Canada but the deal was more trouble than it was worth. He didn't want the hassle of getting a check for me in US Dollars and I didn't want to take the hit of converting a check in Loonies to US Bucks at my bank.

Is there an easy way to do this?

Not really afaik. All banks and services likes to charge for their troubles and pp is no exception. They have pretty poor conversion rates usually in my experience.

[cadence90]

Yes, PP converts currencies just as any bank would do.

"Easy" meaning advantageous? No, not really...converting costs money.
.

[ceolwulf]

Correct that USPS is best to Canada. UPS is worst, by a considerable margin.

I don't think there's any way to avoid currency conversion fees. They charge because they can. Maybe you could get old school and send gold dust :eek:

[GonaSovereign]

Correct that USPS is best to Canada. UPS is worst, by a considerable margin.

I don't think there's any way to avoid currency conversion fees. They charge because they can. Maybe you could get old school and send gold dust :eek:

+ 1 on USPS and UPS.
This is one of those scenarios when bitoin makes more sense.
Sadly, it's only going to get harder to move stuff in and out of countries.

[Ken Robb]

I wouldn't mind a few percentage points for conversion but after my last trip to the UK my bank wanted more than half the face value of my VAT refund because they had a big service fee on top of the percentage. I endorsed the check and sent it to buy a few rounds for the local folks at the pub where I had the most fun.

[adub]

Shipping from USA to Canada is dead simple with USPS and we don't get hammered with the bogus duties and brokerage fees that UPS, FedEx charge.

[m_sasso]

In Canada the rates charged for a US money order can vary, my local credit union will make up a US money order at no charge for me based on my maintaining account. The next least expensive I am aware of is a Canada Post US Certified Money Order, many banks and other outlets will charge as much as $8.00 to $10.00 service fee for the process alone.

Currency exchange rate is another matter and conversions are generally based on the daily Bank of Canada exchange rates.

Paypal sets its own currency exchange rates and generally they will be higher than what most banks will charge. Paypals statement on currency exchanges reads like this "Our currency exchange rates are competitive with conversion rates used by banks and by currency exchanges".

[Ken Robb]

In Canada the rates charged for a US money order can vary, my local credit union will make up a US money order at no charge for me based on my maintaining account. The next least expensive I am aware of is a Canada Post US Certified Money Order, many banks and other outlets will charge as much as $8.00 to $10.00 service fee for the process alone.

Currency exchange rate is another matter and conversions are generally based on the daily Bank of Canada exchange rates.

Thanks for the info Marc. Leslie and I have an account at a credit union but we rarely use it as the location is inconvenient. In my old age I'm a better customer of my banks than I used to be so maybe one of them would do me a favor. :rolleyes: OTOH, I'm now only a seller of bike stuff so what I really need would be reasonable charges for converting/depositing foreign checks.

[m_sasso]

I'm now only a seller of bike stuff so what I really need would be reasonable charges for converting/depositing foreign checks.

If you are taking in Canadian cheques most Certified Canadian Money Orders I am aware of are drawn through large US banks, my credit unions are and the last Canada Post money order I purchased also was. They may look foreign but they are usually just from a large US bank.

[Ralph]

PayPal is so simple to use, and fees are just a fraction of what a bank charges if you just walk in. I'm guessing PayPal 2-3%. I sell something outside of US, they pay in their currency, I get dollars. I think Paypal is way cheaper than Visa. It's not only the conversion fees from the banks (Paypal is just a bank), the currency conversion at a place like Ribble on their web site is also suspect.

And remember currency prices change every second of a 24 hour trading day. They almost have to mark the conversion up just to keep from losing on some days.

[spinarelli]

As a Canadian buyer how are you protected if you send a money order?
At least with paypal you are protected as buyer. For this protection I don't mind paypal's higher exchange rates and the typical 4% which I add to cover the seller's fees.

As a buyer on this or other forums, I expect to cover the exchange rate and the seller's pp fee.
On the flip side as a seller I post a price net to me. The buyer should take care of any extra fees.

lIf you are taking in Canadian cheques most Certified Canadian Money Orders I am aware of are drawn through large US banks, my credit unions are and the last Canada Post money order I purchased also was. They may look foreign but they are usually just from a large US bank.

[Ralph]

Just Googled.....2.5% above the whole sale exchange rate. Pretty darn cheap for that service. They get that rate twice a day.....they take the currency risk. (which I'm sure they hedge in the futures market)

[Ken Robb]

Just Googled.....2.5% above the whole sale exchange rate. Pretty darn cheap for that service. They get that rate twice a day.....they take the currency risk. (which I'm sure they hedge in the futures market)

Is this Pay Pal?

[BdaGhisallo]

With Paypal you do have the option of having the charge billed in the currency you are buying in and doing the FX with your issuing bank if you are using a credit card. I always choose that option since my bank charges far better rates than PP does.

[Ralph]

Is this Pay Pal?

Yes

[pdonk]

Pay pal and USPS/Canada Post have worked best for me.

Tracking is automatic for packages so both sides know when the package was shipped and when it arrives. Every once in awhile you'll get hit with HST / handling, but it is only $8 plus 13%. Happened last week with a saddle I bought from someone here. Frame building supplies I bought a few weeks ago went through with nothing.

On paypal, just had my first bad purchaser experience, had a claim registered against me. Resolved very quickly in my favour as I kept the shipping slip. Guy was a goof trying to pull a scam - claimed it 5 months and 29 days from when the purchase happened.

As for FX and Paypal, I look at it as a cost of using it. I try to sell in USD and keep my balance in USD. Rule at my house is bike money stays bike money.

[spinarelli]

I try to sell in USD and keep my balance in USD. Rule at my house is bike money stays bike money.

Same here, this is the only way to avoid the $2.5% ex fee. It’s not like the money stays there too long,there’s always something new to buy.

[Plum Hill]

I use a Capital 1 credit card for non-US purchases whenever possible. If the purchase is made in the other country’s currency, there is no conversion fee.
I’ve had bigger issues with valuation changes.