A closer look at buying US Dollars in Canada
Discover the best ways to get USD in Canada with Wise, banks, currency exchange services and other financial service providers.
How to transfer money from PayPal to your bank account in Canada
Transferring money from PayPal to a bank account in Canada is a convenient and secure way of sending or receiving funds. It's fast, easy and can be done without any additional costs.
With the help of this guide, you'll learn how to transfer money from your PayPal account into your Canadian bank account. We’ll also look at Wise, an online money transfer service that offers a cheaper and faster way to move money internationally.
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Steps for Transferring Money from PayPal to a Canadian Bank Account
- Log in to your PayPal account and click on Send & Request at the top of the page.
- Select Transfer Money from the drop-down menu and then select Transfer to Your Bank Account.
- If your account isn’t linked yet, you could link your account first. This saves you time during future transfers.
- Enter the amount you want to transfer and any note or reference number if required.
- Review and confirm your information is correct and click Continue.
- Click on Send Money Now to initiate the transfer process - this usually takes 1-3 business days. You can also pay an additional fee for an instant transfer.
How Do I Link My PayPal Account to My Bank Account?
Once you've created a PayPal Account in Canada, here are the steps to be followed:
- Log in to your PayPal account and go to the Settings tab.
- Select Link a Bank Account and follow the instructions provided.
- You will need to provide details such as your bank name, routing number, and account number.
- Once the information is verified, you will be able to make transfers from PayPal to your bank account.
- Alternatively, PayPal might make micro payments to your account as a means of verification.
What are the Transfer Fees for Sending Money from PayPal to your Bank Account?
The fees for transferring money from PayPal to a Canadian bank account depend on where the money is going, how much you’re sending, and whether you are a standard user or a merchant.
| Transfer Type | Fees |
|---|---|
| Instant | 1.75% (up to 25 CAD)¹ |
| Local Standard | No fees |
| Max Fee (5000 CAD +) | 25 CAD² |
| Merchant Instant | 1.50%³ |
| Merchant Local Standard | No Fees |
| Currency Conversion or Markup | 4.00%⁴ |
If you receive money in a different currency on PayPal, the currency conversion fees mentioned above are likely to reduce the amount you receive in your account. The amount varies with the currency and the transaction being carried out.
Meet Wise - A cost effective alternative to PayPal
If you're looking for another way to move money into your Canadian bank account, Wise could be the solution for your personal as well as business transactions. Whether you are a freelancer in Canada or are receiving money from friends or family, Wise lets you make the most of your money.
With a mid-market exchange rate and no hidden fees, it's one of the most cost-effective ways to transfer money within Canada and internationally.
Here’s how much a 1000 USD transfer to your Canadian bank can get you with Wise and with PayPal:
Additionally, Wise’s multi currency account allows you to receive and hold CAD, USD, EUR, GBP and more with just a few clicks, for no extra fees. Wise also has additional features such as a card to make online and in-store payments, and updates to help keep track of your money transfers.To learn more about PayPal alternatives in Canada, click here.
Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.
Frequently Asked Questions About Transfers from PayPal to Your Bank Account
Are There Transfer Limits for Moving Money from PayPal to My Bank Account?
The transfer limit is 5000 CAD per transaction, day or week. The monthly transfer limit is 15000 CAD².
Why Am I Not Able to Link My Bank Account to My PayPal Account?
If you are not able to link your bank account to PayPal, it could be because the details provided do not match what is on record with your financial institution. Make sure that all of the information entered is accurate and up-to-date. You may also need to contact your financial institution directly for assistance in verifying the details of your bank account.
Bottom Line
Transferring money from PayPal to a Canadian bank account is quick and easy, but you can save even more time and money by using an alternative such as Wise. With its mid-market exchange rate and no hidden fees or markups, it's one of the most cost-effective ways to move money internationally.
Wise also offers more currencies than Paypal and additional features like rate alerts and price tracking.
Sources:
- PayPal Instant Transfer Page Canada
- PayPal Canada Consumer Fees Page
- PayPal Merchant Fees Page Canada
- PayPal Currency Conversion
Sources last checked on: 30 May 2023
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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