Last Updated on December, 2024
PayPal, ah! The ever-so-reliable payment transfer service on earth!
It’s easy, fast, and cheap compared to traditional bank transfers when making international payments.
Did you know? More than 7 million companies across the globe accept payments through PayPal.
They say you can send and receive money no matter where you are.
But is it really the truth? Is there a catch to it?
Well, we’re about to learn all about that, so keep reading until the end.
Quick Summary
PayPal is a widely accepted and reliable payment transfer service for international payments, used by over 7 million businesses globally.
It is available in over 200 countries and can be used to send money directly to another PayPal account or through their subsidiary service, Xoom.
PayPal charges various fees and has limitations on international transactions, but there are alternative options available such as international money transfer service providers and wire transfers through the SWIFT system.
Contents
- Can I Use PayPal for International Transactions?
- How to Transfer Money Internationally With PayPal?
- What Are PayPal’s International Fees?
- An Explanation of PayPal Exchange Rate Calculation
- PayPal’s International Money Transfer Limits
- How Long Does it Take When Receiving Money Through PayPal Internationally?
- What Works With PayPal & What Doesn’t?
- What is Xoom, and How Can it Come in Handy?
- PayPal Alternatives
- So, Does PayPal Work Internationally for You?
- Frequently Asked Questions
Can I Use PayPal for International Transactions?
In short, yes, you can use PayPal for sending money overseas.
It is available in more than 200 countries, so businesses and individuals can make cross-border payments using the PayPal mobile app or their website.
But wait, there’s more!
The payment process varies slightly based on whether the recipient and sender have PayPal accounts.
If both parties have a PayPal account, the payment will go straight to the recipient’s personal account (depending on the country) through Xoom (another service by PayPal, and we’ll get into its details in a bit).
Xoom is connected with your PayPal account for a purpose. With it, you can track your payments more easily, and the transfer process becomes relatively faster.
How to Transfer Money Internationally With PayPal?
PayPal makes the money-transferring process easy, and it also has Xoom, an international transfer service provider. Despite offering international money transfers, PayPal urges users to choose Xoom to make personal payments in various countries (more on that later).
Here’s how you transfer money internationally with PayPal,
Send Money Using the PayPal Mobile App
You must follow the steps when sending money internationally using the PayPal app on your mobile:
Send Money Using PayPal Website (From a Browser)
The process here is pretty much similar to how you send cash while using the PayPal app:
What Are PayPal’s International Fees?
Now, let’s talk about the fees (yeah, we see some lips pursing and eyebrows rising). Well, here’s something to release the tension.
PayPal waives transaction fees if you send your money using your PayPal account, PayPal Cash app, or your linked bank account.
However, a 2.9 percent fee along with a fixed 30-cent transaction fee will be smacked on each transaction you make using your debit or credit card or PayPal credit.
Plus, as per PayPal terms and conditions, international money transfers also have various rules and regulations (uh-oh, things aren’t looking too bright here). But hold up, not everything is going south here… keep reading.
You have two different transfer options for making international payments using PayPal. Each of these options has its own fee structure.
PayPal will charge 5 percent of the transaction along with a fee ranging between $0.99 to $4.99. This is when you are sending money abroad directly to a PayPal account (assuming the transfer is made using your PayPal balance).
However, if you make a transfer using your PayPal credit or a debit or credit card, an additional 2.9 percent fee and a 30-cent fixed fee are added. Woah, so better have your PayPal balance topped up, or you’ll find yourself knee-deep in charges.
PayPal’s International Currency Conversion Fees
If you want to convert to a different currency before you transfer your money, there will be a currency conversion fee (4 percent).
The currency conversion fee for US to Canadian dollars is 3.5 percent, but it increases to 4 percent for all other currencies. It might be something different if disclosed during the transaction.
However, if you want to directly transfer to the recipient’s bank account, use Xoom. As Xoom is a PayPal subsidiary, these two work seamlessly together. Plus, you can fund your transaction with a linked bank account or a PayPal account.
PayPal’s Fixed Fee
| Currency | Rate for Business Transfers | Rate for Personal Transactions | Currency | Rate for Business Transfers | Rate for Personal Transactions |
| Australian dollar | AUD 0.59 | AUD 0.30 | New Taiwan dollar | TWD 14.00 | TWD 10.00 |
| Brazilian real | BRL 2.90 | BRL 0.60 | New Zealand dollar | NZD 0.69 | NZD 0.45 |
| Canadian dollar | CAD 0.59 | CAD 0.30 | Norwegian krone | NOK 3.90 | NOK 2.80 |
| Czech koruna | CZK 9.00 | CZK 10.00 | Philippine peso | PHP 25.00 | PHP 15.00 |
| Danish krone | DKK 2.90 | DKK 2.60 | Polish zloty | PLN 1.89 | PLN 1.35 |
| Euro | EUR 0.39 | EUR 0.35 | Russian ruble | RUB 39.00 | RUB 10.00 |
| Hong Kong dollar | HKD 3.79 | HKD 2.35 | Singapore dollar | SGD 0.69 | SGD 0.50 |
| Hungarian forint | HUF 149.00 | HUF 90.00 | Swedish krona | SEK 4.09 | SEK 3.25 |
| Israeli new shekel | ILS 1.60 | ILS 1.20 | Swiss franc | CHF 0.49 | CHF 0.55 |
| Japanese yen | JPY 49.00 | JPY 40.00 | Thai baht | THB 15.00 | THB 11.00 |
| Malaysian ringgit | MYR 2.00 | MYR 2.00 | UK pounds sterling | GBP 0.39 | GBP 0.20 |
| Mexican peso | MXN 9.00 | MXN 4.00 | US dollar | USD 0.49 | USD 0.30 |
An Explanation of PayPal Exchange Rate Calculation
PayPal has a specific procedure to calculate their exchange rates. They receive a wholesale exchange rate quote from the bank twice a day.
PayPal adds a percentage to that quote, which enables them to determine retail foreign exchange rates that they can apply to all transactions involving currency conversions.
Here’s a table for you to comprehend what we’ve gone through here about PayPal international fees,
| Transaction fees | Surplus charges | |
| Transferring money directly (PayPal-to-PayPal account) | 5 percent of the total transaction amount Transaction fee ranging from $0.99 to $4.99 | 2.9 percent funding fee along with a 30-cent fixed fee when using PayPal credit, debit card, or credit card to fund the transaction A currency conversion fee (if converting before sending money) of 4 percent unless a different rate is disclosed within the transaction |
| Transferring via Xoom directly into the recipient’s bank account | The exchange rate markup that PayPal charge, varies for different currencies | Additional transfer fees with the use of debit/credit cards (fees vary depending on currency and amount of the transaction) |
PayPal’s International Money Transfer Limits
Besides the fees, here’s another thing you must keep in mind! You have to deal with some limitations when using international money transfer services by PayPal.
With a verified PayPal account, there’s no cap on money that you can transfer. Up to $60,000 can be sent in one go. But PayPal can reduce that to $10,000 for unverified accounts or other conditions. The limitations can also differ depending on your currency and country.
How Long Does it Take When Receiving Money Through PayPal Internationally?
The process is usually quick, and the money appears almost instantly. Nevertheless, there can be a slight delay if the recipient wants to withdraw directly to their bank.
Standard bank transfers through PayPal can take 1 to 3 working days. However, with the instant transfer feature (available in some countries), funds can appear in the bank account within a few minutes.
You must link a card for instant transfers because PayPal will send the money to a Visa debit card.
What Works With PayPal & What Doesn’t?
What Works?
What Doesn’t Work?
What is Xoom, and How Can it Come in Handy?
Xoom is a service by PayPal, and it can help you where PayPal can’t.
For instance, PayPal only supports 25 currencies at the moment. But if you are looking for a different currency, Xoom is the way to go.
With Xoom, you can send money abroad to over 160 countries. It also supports other services, including direct bank transfer, bill payment, phone top-up, and cash pickup.
Xoom Fees
Xoom has a fee structure similar to PayPal, along with the mid market exchange rate markups (yeah, it’s truly the mirror image of PayPal).
Funding or payment methods and how the recipient wants the money can further drive higher costs.
Transfer Time
Money sent via transfers funded by debit or credit card or cash pick-ups is received within minutes. However, transfers via bank accounts or larger transfers can take a few days (3 to 5 working days).
Limitations
Xoom is only available for sign-ups in the US, the UK, Canada, and the Eurozone. Moreover, it is only available for personal transfers (no business transactions here). Not only that but the transfer amount is capped and varies by country.
PayPal Alternatives
If you feel PayPal is not the right option for you, there are other ways to send money internationally. Here are a few for you to consider.
International Money Transfer Service Providers
These companies specialize in sending money abroad, offering faster and cheaper transfers in a routine. They have their own network of banks across the globe, enabling them to make cross-border transactions with ease.
You pay the money to the company’s account in your home country, and they will credit it to the destination country for the receipt. They will deduct any currency exchange rate markups and fees during the transactions. It’s that simple.
International Wire Transfer (Bank Account Transfer)
It is exactly what it sounds like. You can send money directly from one bank to another without any money transfer company or payment provider (PayPal, Xoom, or any other).
Banks communicate with each other using the SWIFT banking system. It’s a system that links almost every country across the globe.
Sending and receiving banks use this system to confirm the details regarding the transaction using a network of intermediaries processing the transfer (fees applicable). As a result, the amount is entered into the recipient’s bank account.
However, money transfer service providers are faster and cheaper alternatives to wire transfers through the SWIFT system.
For instance, Wise is one of the best money transfer service providers right now. And it does have an upper hand over PayPal. How?
Well, Wise offers lower rates and more transparency, and this is particularly the case with international transfers. They use a small fixed fee and mid market exchange rate. Moreover, Wise transfers are pretty swift and they deal in more than 40 currencies.
On the other hand PayPal fees tend to vary depending upon various factors, including currency and payment destination. And to add to that PayPal also charges a currency conversion fee that can drive costs higher. Plus, they only work in 25 currencies.
International Money Order
Besides the SWIFT system, international money orders are another outdated method for international transfers. They are secure, but they are limited in terms of how much money you can send and how frequently.
So, Does PayPal Work Internationally for You?
PayPal is convenient, don’t get us wrong. There’s a reason why it’s so popular across the globe. Choose PayPal if you want a reliable international payment service with no hidden charges.
Nevertheless, it ain’t the cheapest option out there. Transfers might be fast, but you have to deal with a range of markups and fees that can drive your costs higher.
There are some cheaper alternatives available as well. So, make an informed decision before you choose your service.
Frequently Asked Questions
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