How Does PayPal Work In Canada

Hello there! PayPal operates in a manner, in Canada as it does in nations. It’s essentially a payment platform that empowers you to effortlessly send and receive money online.

You have the option to connect your PayPal account with your bank account or credit card enabling you to make purchases and receive payments seamlessly. It’s a secure method of transferring funds digitally.

Furthermore, it does not disclose your information to the vendor, which adds an extra layer of security. There are about 6.4 million active PayPal users in Canada.

PayPal has both personal and business accounts available in Canada and in this article, you will find out how PayPal works in Canada so you can decide if it’s the right digital payment solution for you.

You will find out how to send and receive money with PayPal, how to make purchases with PayPal, how to use the platform for business purposes, and more.

How Does PayPal Work In Canada: Basic Functions

How does PayPal work? Since PayPal provides financial services, it is expected to simplify and promote financial operations, such as sending and receiving money.

Sending Money

With PayPal’s money transfer services, you can safely send or transfer money, make online payments and pay online, in multiple currencies, to almost anyone The platform supports both domestic and international transfers at little cost. You can make payments on the website as well as through the dedicated mobile app.

Request Payments

With PayPal Request Money, you can send an email or SMS to ask for a payment. The recipient will receive either an email or message with a link, through which they can make a payment directly to your PayPal wallet¹.

You can request money from people in exchange for goods, if the recipient doesn’t have an account all you have to do is send them a request to their email.

Accepting Payments For Premier And Business Accounts

For you to be able to receive payments, you will have to upgrade your account type to premier or business and receive large amounts of payments

A personal account will not be suitable for receiving payments for products and services offered by your business.

Tools For Auction Trading

There are already many PayPal-friendly online auction sites, and any business can automatically place PayPal in their listings. At the end of each successful auction, funds will be transferred from the winning bidder to the seller using PayPal’s e-mail-based fund transfer.

Payments: How to Use PayPal in Canada?

Let’s show you the steps for each action.

How To Transfer Money Via PayPal

The steps for transferring money to a bank account using a web browser are:

1. Click ‘Wallet’ displayed at the top of your screen on the main page.
2. Go to the ‘Transfer Money’ section and then – ‘Transfer to bank account’.
3. Enter the account info you want to transfer funds to and click ‘Next’.
4. Enter the amount of money and click ‘Next’ again.
5. Confirm by clicking the ‘Transfer *amount* Now’ button.

When you’re using a mobile app, here is what you need to do:

1. Tap your PayPal balance.
2. Select the ‘Transfer’ tab and then go for ‘Transfer Money’.
3. Enter the needed bank account information (that doesn’t have to be linked to your account).
4. Enter the amount that you want to transfer out of the account.
5. Make a confirmation by tapping ‘Transfer *amount* Now’.

How To Transfer Money Via PayPal To Another PayPal Account

The process is easier when making transfers to other PayPal users.

1. Click on the ‘Send or Request Payment’ tab on your account.
2. Choose the ‘Send Payment’ option.
3. For personal payments, select ‘send money’, or you can make payments for goods and services.
4. Enter the amount of money to send as well as the email ID of the needed PayPal user.
5. Confirm at the bottom of the page.

How To Accept Payments With PayPal

You don’t need to learn how to receive money with PayPal. Practically, you don’t need to do anything to receive PayPal transactions. It will be automatically added to your balance, and you’ll receive an email notification.

Ways To Top Up Your Paypal Account

If you want to deposit a bank account, here is how you do it from a computer:

1. Link a bank account if you haven’t already done so.
2. Click ‘Transfer Money’, which is below your balance at the top-left corner.
3. Under the ‘Money’ header, you will see a button ‘Add Money to your balance’.
4. Enter the amount you want to deposit in the ‘Amount’ field.
5. For a personal account, you’ll need to click ‘Add’; for a business account, click ‘Transfer’.

The process of making deposits from a PayPal Canada mobile app isn’t much different, and it also requires you to have a linked bank account:

1. At the centre of the screen on a mobile app, you will see the ‘PayPal balance’ tab.
2. Go to ‘Add Money’ by tapping the blue button at the bottom of the screen.
3. Select ‘Add from your bank’ and tap on the bank name you’re transferring money from.
4. Confirm, and the amount will soon be added to your balance.

There is a less common but still working way to add money to your balance – by using cash at a store. It’s done in the following way:

1. Go to your closest participating PayPal retail location, which you can check on the website.
2. On your mobile app, tap ‘PayPal Balance’ and then ‘Add Money’.
3. Select the ‘Add Cash’ option.
4. Tap ‘Generate Barcode’, and the app will show you a barcode that will be active for one hour.
5. Show the cashier the barcode. They will take the cash, process the payment, and give you a receipt.

How to Withdraw Money from Your PayPal Wallet

Any user with a linked bank account can withdraw money from their PayPal balance, you just need to:

1. Go to the ‘Money Menu’ within the top header.
2. Choose ‘Transfer Money’.
3. The app will display your PayPal balances and bank accounts, so choose where to withdraw money and to.
4. Enter the needed amount and continue.
5. Click ‘Transfer’ once you review all the details.

PayPal Fees In Canada

How much is the PayPal fee for transferring and withdrawing money? Naturally, various factors affect the fee structure.

Deposit Fees

Once you link your credit/debit card or your bank account to PayPal, you can easily transfer money to it whenever you want. There are also no fees to depositing your paychecks, tax refunds, and government benefits.

There are fees for depositing cash and loading money to your PayPal Cash Card. When you go to supported stores, you will be charged 3.95 CAD for a single deposit. As for the PayPal Cash Card, there is a fee of 4.95 CAD.

Withdrawal Fees

The cash withdrawals are made for a charge except for MoneyPass ATM, which are surcharge-free cash withdrawals for a MoneyPass card. Normally, ATM domestic withdrawals are $2.50. But for Canada, these aren’t considered domestic. 

It means that PayPal fees for Canada in participating bank branches or other financial institutions are 3 CAD.

Fees For Sending Money

For transfers from PayPal balance to family and friends in Canada, there are no fees for both of you and them. fees neither for you nor the recipients. However, you may be faced with charges, mainly based on the following two factors:

1. Payment method. For a credit card or Visa Debit, a 2.9% transaction fee plus a fixed fee is based on currency.
2. Country of recipient’s account. For the United States and Europe, 2.99 CAD plus a fixed fee is based on currency.

Account Maintenance Fees

Whether you are using the account or you are not using it for a long period of time, there are no fees. The account maintenance fee is 0 CAD.

PayPal Limits

The daily limit for transfers is 10,000 CAD, but it can be extended, and the daily purchase limit is 3,000 CAD. ATM withdrawals are also capped at $400. What PayPal means by “daily” is a 24-hour period from midnight to midnight.

PayPal Conversion Fee

How much does PayPal charge for currency exchange? Generally, such fees are around 3%-4% but range depending on the currencies involved and the intended use. For Canadian and US dollars, the conversion rate is 3.5% and 4% for other currencies.

These rates apply to the following transactions:

1. If you’re paying for goods or services that are listed in a different currency than the one originally registered on your account.
2. If you’re transferring money to other personal accounts that are not located domestically.
3. If you’re using PayPal’s Payouts or MassPay for other currencies.

Conclusion 

Finally, PayPal is a fantastic service for small to medium ecommerce merchants.

It has proved its mettle all across the globe and has created a special spot for itself in the market. It is one of the most successful electronic payment methods.

Feel free to download the app and register!