posted on October 18, 2000 04:03:20 PM new
I got a check today from my high bidder. It's drawn on a Canadian bank but written for US funds (I live in the US), i.e., $X.XX USD is how it is written. Do banks usually charge a fee on Canadian checks if they are written in USD? Is writing USD on a Canadian drawn check and common practice? I am used to being charged a fee from the bank if checks have to be converted from Canadian to USD.
The check is also number 003 in the series (I'm guessing new account), different name on the check, no address or phone number, she's a newbie, and she shorted on shipping (didn't tell me she was in Canada and has a hotmail addy). The amount of the check is very small, and I'm trying to be nice about all this, but if I'm going to get charged an additional fee to deposit the check, I'm going to have to send it back to her.
posted on October 18, 2000 04:08:18 PM new
What she is doing is instructing her bank to negotiate the cheque in US dollars. Her bank will charge HER quite a hefty service fee for doing it that way---but sorry--You'll have to ask your bank if they will charge you.
I use to do it all the time when paying the bills at work---
posted on October 18, 2000 07:34:36 PM new
Found out the hard way that my bank charges $5.00 to process a Canadian check.....Have had to resort to requesting international money orders in US dollars...
posted on October 18, 2000 08:58:51 PM new
Even with international money orders written for U. S. Dollars, my bank requires a "routing number" on the bottom. Otherwise, they make me pay a $5.00 processing fee. Also, they prefer that a money order have a U. S. "site"...ie: "Bank of Canada" is still considered to be "foreign" and subject to additional fees, even if the money order states "U. S. Dollars." American Express MO's are fine...I think I may have a picky bank but that's what they say...
posted on October 18, 2000 09:27:14 PM new
Most US banks use punative fees to discourage consumer and small business clients from depositing foreign items.
If you sell stuff in the $100+ range you might want to consider getting an account at an online bank like SFNB.COM that does NOT charge for incoming wires (even intl). I've found that European banks don't charge an outragious fee for wires.
Bidpay.com works for other uses. Canada and Japan both have intl postal money orders that the US Post Office will cash free of charge.
I've found in dealing with people in the far east that they can generally get cashiers checks drawn on a US bank (generally thru Citibank) that will have all the stuff a US bank wants.
As a last resort, I'll accept cash under the restriction that it is either sent registered or at their own risk via regular mail.
posted on October 19, 2000 06:50:55 PM new
As a Canadian seller and buyer myself, I can clearly answer that question for you.
This person probably opened up a bank account with our regular Banks in Canada that is a US account. Meaning, our Canadian bank is still the institution used, but all funds dealt with this particular account are dealt in US funds.
So, this should not have any bearing for the American sellers to have to pay any bank charges since it is made out in US funds.
This is a fairly new thing being introduced here in Canada.
Hope this answers your question.
posted on October 19, 2000 07:26:25 PM new
Another Canadian buyer and seller here. There are two possibilities as already stated. The check could be drawn from a US dollar account at a Canadian bank (which I have) or the buyer could have simply written US dollars on his check. I've never tried the latter and would be surprised if your bank would accept it. The former is hit and miss. Some banks have no problem with them, others charge a fee and others refuse them altogether. The first couple of times I had no problem with my checks, but then on a fairly pricey item the bank refused the check. The seller was not very understanding and it took some work to calm her down and get the mess fixed. It is very frustrating from our side, so I bite the bullet now, spend the extra money and buy a money order.
