Opening an US Dollar Bank Account in Canada

///Opening an US Dollar Bank Account in Canada

Opening an US Dollar Bank Account in Canada

If you’re planning on selling on Amazon.com as a Canadian you will need to open a USD bank account with a bank capable of accepting ACH transfers, otherwise you can be paid in your local currency to your Canadian bank in CAD through Amazon (which uses Payoneer). However the spread through payoneer is about 2.5-5% in foreign exchange fees. In this post, we will go over the different options you have to accept USD payments from your Amazon payouts.

Many Canadian banks offer accounts in USD currency.

However, that won’t be able to accept ACH payments from amazon, because these accounts are located in Canada. What is needed a genuine US account from a genuine US bank.

So I had to find a Canadian bank located that has a US branch or a US bank that could open a US account for a Canadian resident remotely (You probably don’t want to travel to the US for a sole purpose of opening an account). On top of that, the said bank had to provide an option to send wire transfers online or over the phone.

I did a bit of research and made a table with the banks that can open a US account for a Canadian. I called only a few US banks and the majority of them do not open accounts for Canadians, so that’s why you see only one US bank on the list.

Bank
Open account
Need Canadian
account?
Transfer
CAD – USA
Transfer
USA – CAD
Wire Transfer
BMO Harris over phone no free $10 over phone
RBC Georgia from Canadian branch yes free free over phone
HSBC over phone yes free free online
TD Bank from Canadian branch yes free free in person

It’s important to remember that sending money from the USA or Canada in foreign currency is extremely expensive.
The wire fees are at around USD 25-50 per transaction, but above that, banks charge at around 2% of the lump sum in markups.
If you are lucky enough to be successful at what you do, this 2% markup can become hundreds or thousands of dollars annually.

By | 2018-03-25T00:35:15+00:00 March 8th, 2018|Getting Started with FBA|0 Comments

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