Finding out how to withdraw your PayPal balance is one of the first concerns every PayPal user faces. It seems like an easy task but the process can be handled out in many different ways and there are actually many things you should know beforehand. Through this article, we will go through the process of withdrawing your Paypal balance as well as some handy tips and information to help you with the withdrawal.
In short, there are 2 ways to withdraw funds from your PayPal account, you can either transfer the balance to a bank account or withdraw from an ATM using a linked debit card. Further detail on these processes will be explained shortly.
How to withdraw money from PayPal
To transfer money from PayPal to your bank account you can either use the PayPal application (mobile app) or transfer online via the PayPal website.
How to transfer money from PayPal to a Bank Account
Here’s how to withdraw funds from your PayPal account on your computer:
- Log in and go to your Wallet.
- Click Transfer Funds.
- Click Transfer to your bank account.
- Follow the instructions to complete your withdrawal.
Here's how to withdraw funds through your PayPal app:
- Tap PayPal Balance on the home screen.
- Tap Withdraw Funds.
- Follow the instructions to complete your withdrawal.
Note that: You will have to verify your Paypal account before withdrawing funds. A withdrawal cannot be canceled and make sure that all banking details are correct beforehand.
How to link your Bank Account with Paypal
Here’s how to link a bank account to your PayPal account:
- Click Wallet at the top of the page (if you’re on a mobile device, tap Menu then Wallet).
- Click Link a bank account.
- Select your bank, or click Don't see your bank? at the bottom.
- Depending on the bank you select, you may have the option to link your bank instantly using your online banking login information. If the instant option isn't available, just enter your bank account details manually and click Agree and Link.
Linking Instantly and Linking manually
1. Linking Instantly
To link your bank account instantly, you'll need to enter your user ID and password for your online banking. We'll match this information with your bank to confirm your account ownership. Once this information is entered correctly, your bank account will be confirmed instantly.
2. Linking Manually
If you enter your bank account number manually, you'll be prompted to confirm this bank account. You must complete this step before you can use your bank account to make payments or add money to your PayPal account.
Within 3 business days, review your bank statement to find 2 small deposits (each between $0.01 and $0.99 USD) that Paypal has sent to your bank account.
You can also contact your bank to find out the exact amounts of these deposits. You will need this information to complete the confirmation process which can be done either online or by following the steps below:
- Click Wallet at the top of the page.
- Click the bank you want to confirm.
- Enter the exact amounts of the 2 deposits made to your account. For example, if you receive two deposits of $.05 and $.15, enter .05 and .15 on the screen.
- Click Submit.
Some important notes:
- Sometimes the two deposits are merged together into one depending on the bank. If this is the case you will have to contact Paypal
- You can link up to 8 bank accounts to your PayPal account. Each bank account can only be linked to one PayPal account at a time.
- The time taken for transfers differs depending on where the target bank account is located.
- For transfers to a registered UK bank account funds are available in a couple of hours after the transfer.
Fees you should know about for each country
From a personal PayPal account
If your country is not mentioned in these tables select your desired country here: https://www.paypal.com/th/webapps/mpp/country-worldwide and go to ‘fees’ located at the bottom of the page.
PayPal Debit Card
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 card.
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.
In addition to this, you can withdraw cash from ATMs worldwide and there are no monthly or annual fees as well as no minimum balance required to use the card.
PayPal Fees and Exchange Rate
If you are looking to exchange the currency upon withdrawal you will have to pay a conversion fee. PayPal has an integrated currency calculator within the app where you can view the PayPal exchange rate.
Here’s how to access it:
- Go to your Wallet page.
- Click Currency Calculator.
- Select the currencies you want to convert from and to. The exchange rate appears automatically.
How does PayPal set their exchange rate?
- PayPal receives a wholesale rate quote from their 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 and by currency exchanges.
- Note that when you transfer from your PayPal account to your local bank 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.
A simple process but make sure you know your stuff beforehand!
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.
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