How do Canadians pay Americans for purchases across the border?

T

Tom Overthere

Member
I would like to offer a service to Americans, and am pretty sure some Canadians will be interested. The Americans can just send me a U.S. Postal Money Order or a personal check (that'll have to clear before services are rendered).

But Canadians can't purchase US Postal Money Orders, right? And a check for $10 Canadian is not the same as a check for $10 American...

HOW DUZ IT WURK?

Any advice is much appreciated. :D
 
People still use postal money orders?

Well, if so ... I'm virtually certain that if a Canadian walks into an Canadian Post office, they'll happily sell him a Canadian postal order denominated in US Dollars. Anyway, they did a few years ago, because I saw one.

Credit card companies do currency exchanges all the time. If you were trying to accept payments in South Sudani Pounds it might take a little doing (in fact, today happens to the the first day it's even possible), but Canadians use credit cards and ATM cards in the US (and vice versa) all the time.

If you want to deal with checks or wire transfers, talk to your bank, or make your customers talk to theirs. Though, at the current moment, you'd be better off with that $10 Canadian check (by a whopping 50 cents).
 
sjjohnston said:
People still use postal money orders?
Click to expand...
Yes, people do. When I sell something and it needs to ship, I prefer a USPS MO. I don't cash it until I have the thing packaged and ready to ship- that gives both me and the buyer a bit of protection against fraud- if the MO does not clear, RIGHT THEN, the thing does not ship; I don't forget to ship the thing, and I believe there is a touch of mail fraud if I were to not ship the thing.

I prefer that to PayPal (which I loathe.)
 
You don't need to wait for USPS MO to "clear"....it's as good as cash.

I've used MOs...but they drag down the whole buying/selling processs.
Yeah, PayPal takes a cut, but when I sell something on eBay, I like to see payment made within the first day, and then I can ship that same day.
Likewise, when I buy on ebay...I pay as soon as I win the auction, and I expect the item to ship within a couple of days.
 
stevieb said:
that gives both me and the buyer a bit of protection against fraud
Click to expand...
A bit off topic, but: what you describe gives the buyer no real protection against fraud. Of course (or at least I hope) in your particular case, you know that's not an issue, because you're not defrauding people ... but the same can be said of the buyer who suggests you ship the package and he'll pay you when it's received. I think you'd consider it rather odd if he said such a system gives both him and the seller a bit of protection against fraud.
 
I believe it does give the buyer some protection against fraud, because if I receive payment via the USPS, if I defraud the buyer by not shipping the thing, it becomes mail fraud, and the Feds can get involved. I believe, too, that cashing a USPS MO does the same thing.

You are right- I have not defrauded anyone, either that way or any other, but I often sell things to people via various forums or yahoo groups, who have never dealt with me, before. Using a USPS MO may make them a little more comfortable doing business with me.

There is another reason I do it- it motivates me to ship the thing, and I only make one trip. I think someone can not buy a USPS MO, send it to me, then go the post office the next day and cash it out. It's never happened, but I cash 'em and ship the stuff right away, anyhow.
 
I usually use Paypal when buying from the U.S. It's simple and free of hassle. I'd never heard about that USPS MO before, though. I think I'll check it out next time.
 
stevieb said:
I believe it does give the buyer some protection against fraud, because if I receive payment via the USPS, if I defraud the buyer by not shipping the thing, it becomes mail fraud, and the Feds can get involved.
Click to expand...
What makes it mail fraud, and thus a federal offense, is using the mail (or another interstate carrier), not the use of a money order.

The mail/interstate commerce business is just the predicate to make it a matter subject to federal jurisdiction. Fraud is a crime anyway; it's just not a federal one in the absence of some constitutional basis for it to be subject to federal law.

The language of the statue is relatively impenetrable, but here's the gist:

"Whoever, having devised or intending to devise any scheme or artifice to defraud ... for the purpose of executing such scheme or artifice or attempting so to do, places in any post office ... any matter or thing ... or deposits or causes to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier, or takes or receives therefrom, any such matter or thing ... shall be fined under this title or imprisoned not more than 20 years, or both."

The buyer can't just cancel a money order (unless, of course, he still has it). It's prepaid, and - unlike a bank check - can't "bounce." The only risk you (the seller) has is that it could be counterfeit. The buyer, on the other hand, is out the money if you cash it and walk out the door, never to be seen again.
 
The buyer has eBay buyer protection.
The seller has PayPal payment protection (you don't ship until you get paid).
It's pretty simple.

I had two cases where eBay/PayPal got involved.
One was an item that had to be returned because it was not functional, and even though the seller had a "No Returns" on the listing, he was persuaded to take it back and give me a FULL refund, including the shipping.
The other was a seller that never shipped, even though I paid. When the money was requested back by PayPal and held...the seller promptly shipped.

Good luck getting those kinds of things resolved by the USPS!!! :laughings:
 
There is no real protection of payment using the USPS ..... you can fill out a grievance form but my postmaster told me that if there is no conviction you don't get your money back.
 
Thanks, guys. I knew there was enough "Canadian Action" on this board that I'd receive some useful information. Thanks to my fellow Americans, as well (and I'm not a big fan of PayPal either).

Still not sure what to do.

It appears that I could add PayPal credit card processing to my website and increase prices slightly to offset the cc processing fee. But there's a complication.

1) I want to perform a service that involves my customer sending me his analog cassette tape,
2) and I don't want to perform the service until after I receive payment.

3) The simple approach is to have the customer enclose a check or money order with his cassette,
4) but an online credit card transaction would be more convenient, might protect the customer and me better, and also should iron out differences in international currencies (yes or no?).

5) But the issue is...WHEN does the customer make his online cc payment?
I want the customer to charge his card at the time he sends his tape to me, but I can't make him do that. I do not want to open the parcel he sent me until I know he's paid for the service, nor do I want to end up struggling with some oddball who sends a tape but then refuses to send payment.

A Catch-22 so far.

I don't think the intended service will generate very much business, so maybe I should just Keep It Simple and require an enclosed check or Money Order. But won't that limit me to U.S. clients only due to currency complications...? :confused:
 
"Theft of services" can best be dealt with utilizing the police and the BAD personal/company check.



If not ..... I knows tis guy, Ya knows what I 'am talkn' bout. ;)


Jimmys69 =====> "The Nightlight" :cool:
 
And Diggy_dude has been dealing with hillbillies for some time now if you have to consult with him on the fine art of bartering. :D

hint ☼ 4 chickens and a rooster = a used Shure SM57 and a small goat = a new 57.
And moonshine is still against the law, Federal case if it crosses state lines. :p
 
Two ways to get payment, if you've eliminated Paypal as an option:

- Get set up so that you can accept payment by credit card.

The credit card processing company will have a Merchant Agreement (which is huge), and a bunch of FAQs that explain the Merchant Agreement. If you take a look at these, they should explain the limitations you're under as to when you can effect payment (e.g. whether you can get paid before you start work), how payment can be reversed, etc.

Even if you can't execute a payment right when you receive the package (not sure about that either way), there's a method by which you can confirm at least $X is available and - I think - put a "hold" on so that your customer can't run up to his limit and eliminate your ability to get paid. Exactly how you do the "hold," and how long it can last, I'm not sure. It's what hotels do when you give them your card on checking in. They don't get paid until you check out, but they essentially "block off" $500 (or whatever the appropriate amount is, depending on the rate and how many nights you're staying) in the meantime.

Chargebacks are a potential issue. The determination whether the customer owes you the price of whatever you did isn't really affected by the method of payment (that's a commercial-law issue), but the relative bargaining positions are different. Someone who pays with a credit card is kind of halfway in between a customer who pays in advance with a check or cash and a customer whom you bill after the work is done:
- Pay in advance: if you (the seller/service-provider) cheat the customer, he's entitled to his money back ... but in the meantime, you've got the money, and he has to sue you or figure out some other way to make you give it to him.
- Pay with a credit card: if you cheat the customer, he can notify the credit-card service company, and they'll "charge back" your account, essentially reversing the earlier payment. If the customer's claim is sufficiently lame, the credit-card company will pay you, or they may leave it to you to resolve somehow, though likely in a more efficient way than an actual lawsuit.
- Pay in arrears: if the customer cheats you - i.e. accepts the goods or services and never pays - now you're the one who's entitled to the money but has to figure out a way to collect it.

Credit card companies will certainly "iron out the differences" in international currencies. This is a basic part of what they do. They use a relatively favorable exchange rate, which is good; at one time they (or at least some of them) used to throw on some fees, but a class action pretty well reversed that practice, at least in the consumer arena. Not sure about commercial merchant arrangements.

- Take money orders or checks.

Canadians can send you postal money orders issued by Canada Post and denominated in US Dollars, as I mentioned in my earlier post. Your bank should accept them for deposit. Whether they charge a fee depends on your bank and what kind of account you have.

Canadians can get their own Canadian banks to issue US-Dollar-denominated cashier's checks also. A Canadian also may be able to write a personal check in US Dollars, if he has the appropriate arrangement in place with his bank.

You could also allow Canadian customers to send you a personal check in Canadian Dollars: you'd just need to quote a price in C$, presumably based on the current US-Canada exchange rate (at the moment, you'd be accepting fewer Canadian Dollars, though historically it's almost always been the other way 'round). Your bank would convert it back to US Dollars and credit the appropriate amount to your account, though (again) there might be a fee, or unfavorable exchange rate, involved. Also, I believe there'd be an additional delay involved in clearing an international check.
 
SJJ ==

You really are a force of nature (and perhaps an attorney...)!

Thanks a LOT for the depth of your comments; I appreciate it. I think the service I have in mind will produce modest business opportunity at best, so taking everything into account, I think it best that I talk with my bank about these possibilities and post pricing on the website in US dollars and Canadian dollars (per your comments).

Since the volume of business will likely be LOW and oriented toward 'personal' service, I think asking for an enclosed personal check may be the best way to go, albeit slow and potentially problematic (but probably no more problematic than the other options).

It's very helpful to have a chance brainstorm a bit. Thank you for indulging me.
 
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