Money transmission regulations currently forbid the transmission of quasi-cash payments to International recipients. Payments are only allowed for auctions, goods, and services.
I realize PayPal is an American company, but I'm surprised that they have to apply American laws to a transaction between two Canadians. I guess its because the money goes to them first and then back to my friend.
Well whatever. I selected "Goods" instead of "Quasi-Cash" and it went through fine.
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