I don't think you get dinged when transferring money into your account. I think it's only when you send money to someone else's account.
But is PayPal able to detect that both accounts are from the same owner? I mean regardless of name, more so electronically by IP address or account number.
I'm not sure if they differentiate between the two because they are two separate accounts or if transfer fees accumulate simply based on the transaction. If they are under the same name, maybe PayPal will recognize the similarities?
Technically, he is transferring US currency into a Canadian bank account so I would assume the exchange rate reflecting the amount in present CAD, for that particular date, would take effect.
Then again, I could be wrong. Maybe PayPal has this information listed on their FAQ section.
Is it the same account used to deposit funds into PayPal? I could see them not charging fees if it's already on file.