CANADA’S banking system is in many ways different than their American counterparts, but definitely more reliable and solid and capitalized, and not prone to banking failures. Banks are highly regulated (under the Office of the Superintendent of Financial Institutions – Government of Canada).
American Bank failures can have a number of reasons: the business models of the banks concerned; failures of regulation; the large number of small and mid-sized banks in the US; and the rapid increase in interest rates from the country’s central bank, the Federal Reserve.
https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/
Every time that another US Bank fails, it inevitably leaves a trail of very nasty and negative economic implications that can affect us all, in Canada. We have seen it all.
And why are there so many Banks in the US of A ? Imagine a country as large as Canada, admittedly with much fewer populations, but only really six major Banks, of which three of the largest are my own.
In those many years in Canada that I myself have relied and trusted my money (online) to three of Canada’s (6) biggest Banks, I know that it is safe. Never a problem.
https://thefinancialbrand.com/news/bank-culture/comparing-united-states-canadian-banking-systems-54467/
https://www.cpacanada.ca/en/news/canada/canadian-banking-system
I work on a different project now, listing items for sale on eBay, that is eBay Canada website. My understanding is that funds can be held by eBay, if [and I quote: “It is important for each seller to receive the money as quickly as possible after the sale of an item. However, eBay may sometimes need to put a hold on your funds due to your selling history or performance or to address disputes. This helps it keep eBay a safe marketplace for buyers and sellers.”, end quote by eBay.]
The Headquarters of eBay.com, and eBay.ca are:
USA: eBay Inc., 2025 Hamilton Avenue, San Jose, CA 95125, USA. Canada: eBay Canada Limited, 240 Richmond Street West, 2nd Floor Suite 02-100 Toronto, Ontario, M5V 1V6, Canada.
Now, being in Canada I like to deal with eBay Canada as a seller who likes to get paid without any problems. Then, how come that there are so many eBay customers who are having problems getting paid via the online banking transfer system: which is, as soon a buyer has received the item, funds are released by eBay, and payouts will be done by automatic money transfer into the seller’s (mostly) checking account.
Some customers/sellers claimed that they never received the funds due to them.
Despite my Bank, for example, which is the largest Bank in Canada, that a customer can even have US dollar accounts and that there should be no problem for any funds transfer from eBay into a checking account, still customers using eBay reporting problems, such as :
Never received my sales proceeds funds or my Bank will not process them.
eBay is managing all payments, by buyers and payouts to sellers.
https://pages.ebay.com/ebay-is-managing-payments/, partnering with Payoneer.
Payoneer is a money transfer service that extends across borders worldwide. Your Payoneer account operates just like a traditional bank account. Once you provide customers with your Payoneer account information, money can be received and then deposited into your local bank account.
This is what eBay says:
“eBay makes the funds from your sale available within 2 business days after confirming the buyer’s payment. You may choose to receive payouts of available funds daily, weekly, fortnightly, or monthly. Learn more. If a hold is placed on your payment, there may be a delay in your payout.”
I believe this may be a problem with the differences in the dollar currencies. Not only conversion from US dollar to C$, but also potential buyers like to get merchandise cheaper on eBay Canada, making offers in C$ at their end (using email to the seller, as has been in my case), while our own Canadian Banks have problems with processing these funds, or simply blocking them. The new eBay system of MP (managed payments) should gradually turn into a safer and more reliable system.
This is still such an unreliable mess, that I decided to cancel all my listings for now, because this may have resulted in a loss at my end, using other web portals for selling.
Frankly, this entire selling and buying business model is so convoluted with many parties, including not only US sellers needing to deal with Canadian buyers, or vice versa, but also in between money managing entities, such as Payoneer, PayPal and the likes.
[ https://tipalti.com/payoneer-vs-paypal/ ]