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I always thought it was free to send money through your Paypal balance or bank account? And the only way you were charged fee's is if you were using a credit or debit card?How are you paying? Is it the latter mentioned above because that could be where the fee's are coming from.
All I can tell you is that I know paypal has the worst exchange rates around. Even if the Canadian dollar is higher than US, I always lose money when I transfer, no matter which way it's going. Sorry, I wish I could be more helpful.