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Any Canadians here? Need some answers about paypal!

by visit_faraz
6 replies
I am having problems with paypal as my country (India), has laws which restricts the adaptive payment system.
So, I was thinking of telling a relative of mine, who lives in Canada, to open a canadian paypal account for me.

Now, I am thinking that if he opens the account in his name, then he may face tax issues as he could be asked to pay taxes for income that is actually mine.

But what if he opens a canadian paypal account in my name and his address.
I would be able to use the account, he could do the transactions for me from Canada
and send me the payments that I receive in the paypal.

Or maybe there is a paypal debit card available?
IF that is so then he could send me the card
and I would be able to withdraw my money in India without any problems at all.

question 1: Did paypal ask for any documents before you could open your account?
Question 2: Is it required to have a Canadian bank account to have a canadian paypal account?
I mean, if you didnt give your bank account number while signing up would there be a problem?
Question 3: Is it possible to withdraw money from anywhere in the world using the paypal debit card (it's available in Canada right?)



So, what do you guys think?
Is there a problem that could arise with this?

Any advice or suggestions are welcome.

Thanks,
Faraz
#adaptive payments #answers #canadians #paypal
  • Profile picture of the author visit_faraz
    Hi,
    I believe the canadians must have been sleeping when I posted this,
    but must be awake by now.
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  • Profile picture of the author visit_faraz
    Hi Alexandre,
    could you please answer the questions too, pretty please.

    I have added the questions a minute ago and it would help a lot
    if you could answer them.

    I have already asked my relative in canada to ask a knowledgable person
    but I thought it a good idea to come and ask here also.
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    • Profile picture of the author Alexandre Valois
      Originally Posted by visit_faraz View Post

      Hi Alexandre,
      could you please answer the questions too, pretty please.

      I have added the questions a minute ago and it would help a lot
      if you could answer them.

      I have already asked my relative in canada to ask a knowledgable person
      but I thought it a good idea to come and ask here also.
      Considering that none of us here are accountants or professionals contracted to give you advice and counseling regarding your business administration and tax handling, it is not a good idea to come and ask here also.

      I am sorry if that is not the answer you are looking for but it's the most helpful and reliable you'll ever get.
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  • Profile picture of the author DanielaFuego
    [DELETED]
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  • Profile picture of the author Sid Hale
    Hi Faraz,

    You can open a personal Paypal account without having to register credit card or bank account information, but it would likely get frozen once there was any substantial flow of funds through the account. A personal account is not sufficient for use in a business (even if today you are just "small potatoes").

    A Premier or Business Paypal account requires that you provide either a credit card or bank account for the purposes of "guaranteeing" your Paypal account (i.e. Paypal can withdraw funds from those sources to satisfy a negative balance in your Paypal account).

    Personally, I don't think the idea of using a relative's Paypal account is a good idea at all. First, there is the income tax liability which your relative would incur. Also, debit cards are not anonymous. A Paypal debit card is tied directly to the Paypal account, which in turn is tied to a credit card or bank account. Is your relative willing to use HIS credit card/bank account to verify the Paypal account?

    The persistent use of a Paypal debit card in India, to draw funds from a Canadian Paypal account is also likely to raise red flags.

    If you think Paypal is an important option for you, I think you should forego involving relatives and simply look into registering a business in a country that is acceptable to Paypal, set up a bank account for the business in that country, and then apply for a Paypal account for the business.

    Just my 2 cents
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    Sid Hale
    Coming Soon... Rapid Action Profits (Pro)

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    • Profile picture of the author visit_faraz
      hmm, makes a lot of sense.

      Originally Posted by Sid Hale View Post

      Hi Faraz,

      You can open a personal Paypal account without having to register credit card or bank account information, but it would likely get frozen once there was any substantial flow of funds through the account. A personal account is not sufficient for use in a business (even if today you are just "small potatoes").

      A Premier or Business Paypal account requires that you provide either a credit card or bank account for the purposes of "guaranteeing" your Paypal account (i.e. Paypal can withdraw funds from those sources to satisfy a negative balance in your Paypal account).

      Personally, I don't think the idea of using a relative's Paypal account is a good idea at all. First, there is the income tax liability which your relative would incur. Also, debit cards are not anonymous. A Paypal debit card is tied directly to the Paypal account, which in turn is tied to a credit card or bank account. Is your relative willing to use HIS credit card/bank account to verify the Paypal account?

      The persistent use of a Paypal debit card in India, to draw funds from a Canadian Paypal account is also likely to raise red flags.

      If you think Paypal is an important option for you, I think you should forego involving relatives and simply look into registering a business in a country that is acceptable to Paypal, set up a bank account for the business in that country, and then apply for a Paypal account for the business.

      Just my 2 cents
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  • Profile picture of the author Jack Hunter
    Originally Posted by visit_faraz View Post

    I am having problems with paypal as my country (India), has laws which restricts the adaptive payment system.
    So, I was thinking of telling a relative of mine, who lives in Canada, to open a canadian paypal account for me.

    Now, I am thinking that if he opens the account in his name, then he may face tax issues as he could be asked to pay taxes for income that is actually mine.

    But what if he opens a canadian paypal account in my name and his address.
    I would be able to use the account, he could do the transactions for me from Canada
    and send me the payments that I receive in the paypal.

    Or maybe there is a paypal debit card available?
    IF that is so then he could send me the card
    and I would be able to withdraw my money in India without any problems at all.

    question 1: Did paypal ask for any documents before you could open your account?
    Question 2: Is it required to have a Canadian bank account to have a canadian paypal account?
    I mean, if you didnt give your bank account number while signing up would there be a problem?
    Question 3: Is it possible to withdraw money from anywhere in the world using the paypal debit card (it's available in Canada right?)



    So, what do you guys think?
    Is there a problem that could arise with this?

    Any advice or suggestions are welcome.

    Thanks,
    Faraz
    1. Yes. You have to provide Social Insurance Number to Paypal. Thats Revenue Canada, Paypal have no choice. So unless you are a Canadian somebody else opening a Canadian account in your name would be pointless.

    2. Yes. To be fully verified. Non-verified Paypal is next to useless these days.

    3. Yes. But unless you are actually Canadian you will never get that card on a Canadian Paypal.

    On top of that if they see your IP constantly being from outside of Canada they will block your account and ask for ton of documents. They did that to me when I was in USA for couple of months.
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