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Topic
Posts:
4
Last edited 5 months ago

Canadian Seller with USD Currency

My Shopify store's currency is in USD, and I am Canadian. Based on the forum people recommended opening a US Savings account with Tangerine to capture their Shopify payments. So i setup an account, however whenever Shopify tries to pay me it fails, it says:

"Your payout couldn’t be withdrawn because the bank account details you entered were incorrect. You need to enter bank account details for a valid checking account. Your payouts will be on hold until you resolve this issue."

 I'm not sure what I'm doing wrong. I only have a US Savings account with Tangerine, and i went with them because every other bank has fees for having a US account. Can anyone else relate to this?

I just want to be able to capture my USD payments without fees but it doesn't seem the Tangerine USD Savings account is a viable option anymore. 

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Replies
Alex Shopify Employee
Posts:
217
5 months ago

Hey, Farrukh!

My name is Alex, I'm a guru here at Shopify!

So sorry to hear that you're having issues with those payouts!  The problem there is likely that it's a savings account - in order to pay out, Shopify requires a checking account to be entered for your banking information.  A savings, flex currency or speciality account will not work as your chosen bank account.  In order to get those payouts working, you'll want to set up a USD checking account with your financial institution; once done, we'll be able to get those payouts to you!

Hope that's helped!  Please feel free to give us a call or start a live chat at any time, we're open 24/7 for your convenience and always happy to assist!

Cheers,

Alex | Shopify Guru

Posts:
4
5 months ago

Hey Alex,

Other than this US Savings account I do not have a US checking account.

What would happen if i forward my Shopify payments to a CAD account even though my store's currency is in USD?

Alex Shopify Employee
Posts:
217
5 months ago

Hey Farrukh!

That payout would fail as well, I'm sorry to say.  To accept USD payouts, it must be a USD checking account.  I'd recommend reaching out to your bank to discuss setting up an account!

Cheers,

Alex | Shopify Guru

Posts:
4
5 months ago

Hey Alex,

Just went through 3 Canadian banks who have no idea how to receive payments through Shopify

 

The first one was Tangerine, they claim that in order to receive payments to their US Savings account, it needs to be a Canadian instititute that is paying.

 

The second one was CIBC, who claim that the only way they can accept transfers to their US account from Shopify is through WIRE transfers. 

 

The third was TD, who suggested I could open a US holdings account, however they are unsure whether or not it would work.

 

Do you have any advice for me a fellow Canadian who is trying to operate a store that sells in USD. I am astonished at how much of a hassle it is to get this to work.

Leon Shopify Employee
Posts:
117
5 months ago

Hello, Farrukh.

Leon here from the Shopify team. 

I have previous experience in Canadian banking that I hope to shed some light on how to set up your USD Shopify Payments account with a bank account. 

Shopify Payments will send the USD payment to your bank account through the same means as a CAD payment to your chequing account. The most likely reason a transfer is failing with a savings account is that some savings accounts do not support the ability to accept both pre-authorized credit (deposit) and pre-authorized debit (withdrawal) payments. PAD payments are required for Shopify Payments is to pull money from the deposit account in the event that you refund more than you sell in a given day resulting in a negative Shopify Payments payout amount. 

For this reason, all Canadian Shopify Payments payouts in USD must go to a USD chequing account at a bank based in Canada, and all Canadian Shopify Payments in CAD must go to a CAD chequing account at a bank based in Canada. 

Regarding Tangerine, it may be worth contacting them to see if they need to enable the ability for PAD/ PAC payments on that account similar to a chequing account, or if a USD-chequing account is required - the same would go for any other bank where payouts have failed. 

Shopify Payments payouts are a domestic payment issued by a bank in Canada, regardless of whether the currency used is USD or CAD. 

I hope this clears up any confusion and helps you sort out your banking dilemma. 

Best,

Leon 

mlloyd Member
Posts:
1
3 months ago

Hi Leon,

I'm also looking to sell products in USD, but am living in Canada. I reached out to an employee at RBC, looking to set up a USD account for accepting payments. However, they would only offer me a US business account, due to requirements around reporting GST/PST. The problem is that this results in a charge of $1.12 per transaction.

If i just set up a personal US checking account for my shopify business, would I run into any legal issues when tax season rolls around?

Hollyps Member
Posts:
5
10 days ago

This is your solution!

I live in Canada too and sell in USD with some of my shopify stores.

Go to TD and open a US checking account (not a holding account, but the borderless account). It's $4.95/month with unlimited transactions. There will be no issues receiving USD. 

Lord Sloth Member
Posts:
7
Last edited 5 days ago

We are also looking to switch to Shopify Payments, and have two stores; one in Canadian Dollars, and one in US Dollars for our southern neighbours.

I have a few questions.

1) We are currently getting overnight settlement for CAD and 2-day settlement with USD with Chase Paymentech.  Does Shopify Payments settle in one to two days?

2) Do we get charged the International fee rate for Americans Customer, if we process there transactions in US Dollars.

3)  I'm curious about this Shopify Capital, although the factoring charge is rather high.  Assuming everybody here is low risk and have some volume of sales, how long did it take to get the invite (days, weeks, months, never).

Leon Shopify Employee
Posts:
117
5 days ago

Hello, 

Leon here again! 

1) When using Shopify Payments in Canada you will receive deposits to your Canadian-based CAD or USD bank account 3 days following the sale. A detailed explanation of the Shopify Payments payout schedule can be found here

2) The rates you are charged are determined by the origin of the customer's card, rather than the currency. If your customer pays with a card based at a bank outside of Canada, you will be charged the international rate to process the payment as this counts as in international transaction. Conversely, if a Canadian customer pays with a USD credit card from a Canadian bank, the domestic rate will apply. 

3) Currently, Shopify Capital is being offered to shops that meet a number of criteria including, but not limited to, current sales volume, chargeback rate, and whether or not you're using Shopify Payments. I didn't see your store URL listed on your forum account, but if you either add it here in a reply or contact our Support Team here we can put you on the list of interested stores for future Shopify Capital consideration. 

I hope this helps! 

Leon