How to Withdraw money from PayPal? In the digital age, PayPal has become a popular payment platform for many to transfer and store money. It’s convenient, secure, and allows you to withdraw money from your account quickly.
Finding out how to withdraw money from PayPal is a key question for every PayPal user. No matter, if it is from an invoice, an e-commerce site, or checkout, an important part of working with any payment gateway, is to be able to withdraw the money when convenient.
The good news is that withdrawing money is a relatively easy task.
Withdrawing money from PayPal can be a tricky process if you don’t know what to do or have never done it before. And it only keeps getting harder in 2023 when the rules on other payment platforms change!
If you want to safely make sure your PayPal money actually goes into your bank account or debit card, follow this step-by-step guide below that outlines what you need to do.
How to Withdraw money from PayPal?
If you would like to spend the PayPal balance held on your account immediately, another way of converting it to cash is to have a PayPal debit Mastercard.
However, only PayPal users with a registered business account are eligible to receive and use the debit card.
If you have a business account you will be able to spend your balance conveniently, anywhere, and anytime in shops or online stores.
Your linked debit card can be used to withdraw cash from most ATMs worldwide. There are no monthly or annual fees as well as no minimum balance required to use the debit card.
PayPal Fees and Exchange Rates
When using PayPal to withdraw money from your account, it is important to be aware of two common fees associated with the service: PayPal’s fee and an exchange rate fee.
PayPal charges a flat fee for all outgoing withdrawals, no matter the size of your withdrawal or currency. This fee typically ranges between 2% and 4%, depending on whether there are any other fees associated with the transaction.
In addition to PayPal’s fee, any withdrawal that involves converting currencies may also incur an exchange rate fee. This means that you may not receive the exact amount you asked for due to the fluctuating values of world currencies.
Depending on where your Paypal account is opened, how you withdraw money, and in which currency, fees may be applied.
You can see a detailed list on PayPal Global’s page and go to ‘fees’ located at the bottom of the page.
By entering the amount you will be sending and receiving, you can ensure that the calculation is accurate so that you have an exact idea of how much money will end up in your pocket or be pocketed by PayPal.
How does PayPal set its exchange rate?
- PayPal receives a wholesale rate quote from its bank twice a day and adds a percentage to determine the retail foreign exchange rate to apply to transactions that involve a currency conversion.
- According to PayPal themselves, their exchange rates are competitive with conversion rates used by banks.
- Note that when you transfer from your PayPal account to your local checking account, PayPal automatically converts the money into the local currency when the transfer is initiated.
How to get a better rate when exchanging your PayPal balance?
What if you would like to pay less when making transfers into different currencies?
One way to do this is to switch your funds first within PayPal before making your withdrawal.
This is because the exchange rate margin is lower by about 2.5% when converting the currency without withdrawing.
In conclusion, there is a lot of information offered by PayPal on how to withdraw money however there are some things that you should know about before making withdrawals.
PayPal might not explicitly give such as the exchange rate mark-ups and certain charges or how to ensure that you get a fair rate by transferring your currency first.
Are you looking for more alternative ways to make payments? Is PayPal reaching its limits for your business payment needs?
Fintech alternatives such as Statrys provide a payment platform with transparent fees, and fast and secure payment processing, all of which will help you manage your financial transactions with ease.
The multi-currency account enables you to make payments in 11 different currencies and withdraw money with a linked debit card. Statrys offers fair and transparent fees which can help you streamline your business if you regularly make payments in other currencies.
How to get a PayPal balance for a better rate
Exchange rate matters when you need to send and receive money in other currencies, so how do you ensure you get a fair rate? One option is to use Wise to avoid PayPal’s exchange rate mark-up.
Open a Wise multi-currency account and you can get your own local account details for multiple currencies, including USD, EUR, AUD and many more. You can use these international account details to withdraw your PayPal balance.
So, if you hold a PayPal balance in USD, you can withdraw it using your US bank details from Wise. This means that PayPal doesn’t need to do a currency conversion, so you can avoid the mark-up on the exchange rate. If you do need to convert to GBP, you can do it easily and cheaply with Wise – benefitting from the mid-market exchange rate and tiny fees.
PayPal withdrawal limit in the UK
With PayPal, you can withdraw any amount to your confirmed bank account provided you have enough money in your PayPal balance. However, there may be delays and restrictions imposed for security reasons, such as to comply with anti-fraud processes. And new users may have limitations on their PayPal activity until they are able to verify their bank account
PayPal debit card
If you want to convert PayPal to cash, then you’ll need a PayPal debit MasterCard to spend the money held on your account. In order to get a PayPal debit card, you’ll need to have a PayPal Business account⁶. At the time of writing, PayPal doesn’t offer a linked debit card for personal customers in the UK. If you have a PayPal Business account, then you will be able to spend your PayPal balance conveniently, online or in stores.
If you don’t have a business account with PayPal, but you still want to spend with a linked debit card from a convenient online account – there are alternatives out there, such as the Wise multi-currency account with a linked debit card.
It lets you spend in any currency you hold on your account, and withdraw up-to the currency equivalent of £200 a month from ATMs for no fee. There’s no exchange rate markup, if you need to switch from one currency to another – just a small transparent fee.
If you’re having any issues relating to PayPal withdrawals, here’s how to get help⁷:
- Login to your PayPal account and go to ‘Help’
- Send a message via the PayPal Assistant live chat service
- Use the Resolution Centre to resolve issues with transactions or your account
- Call PayPal Customer Service on 0203 901 7000 – for a quicker service, you can use a one-off passcode generated in your online account.
After reading this, you should have all the info you need on how to withdraw money from PayPal, including the steps to follow, fees and how to get help if you need it.
Just remember that when it comes to withdrawing money from your PayPal balance in other currencies, there are cheaper options available. Wise offers the real, mid-market exchange rate and fair, transparent fees – and it could save you a bundle if you regularly receive PayPal payments in other currencies.
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