Techniques to Cut Costs when Withdrawing via Paypal

10:19:00 AM Roxy Cortes 0 Comments

For work at home moms like me, Paypal fees can be such a pain. Paypal charges are very steep and costly, specially if your transactions are very often (like every week). For example, if you earn $100.00 for your services, $4.70 will be deducted upfront and the recipient will only receive $95.30 (ughh). You can calculate how much they charge on incoming money here. 

They charge on both incoming money (payments) and outgoing money (withdrawals). Plus, there's also a minimal discrepancy during dollar to peso conversion...so there goes our hard-earned money, chipped off bit by bit. This post discusses a few techniques to save a few peso when dealing with Paypal. 



It is a known fact that Paypal charges a fee when a withdrawal transaction is made. If I'm not mistaken a Php 50 per transaction (or a dollar) is charged. The only exception is if the withdrawal amounts to Php 7000 peso and up, that fee is waived. 

Tip 1: Ensure your Paypal withdrawal transactions to at least Php 7000.00 and up.


Sadly, the local banks have additional fees on their end too. I've been using The Bank of the Philippine Islands (BPI) for the longest time now and they charge Php 200 for every Paypal withdrawal. 

I haven't tried Banco de Oro (BDO), but I've read they charges a bit higher charge of Php 250 on every Paypal withdrawal to a BDO bank account.

Paypal Help mentions that "local bank charges may apply", but these rates are commonly not published, specially on the local banks' pages.

Tip 2: Apply a Unionbank Savings Account, they do not charge Paypal Withdrawals. 

Yes! I just recently used my Unionbank for my Paypal transactions...and was very relieved to find out they do not charge a fee on withdrawal transactions. Surprisingly, my money went in quite fast (compared to my BPI experience). From Paypal on a Wednesday morning, to my Unionbank on Friday early morning. I'm hooked!

I think it's also the same with Unionbank EON cards, except with EON, you have a limit of $100 for every transaction. For more information on Unionbank-Paypal transactions, they've put up a handy dandy guide.

Tip 3: Avoid using your credit card or debit card to withdraw from Paypal. 

A whopping $5 per withdrawal is charged when sending your money to your credit card or debit card. Plus, the transaction takes a longer turn around time..it'll take at least 5 - 7 days for the money to be credited. Personally, I don't see any benefit in this, since credit cards have also additional fees to add to ones finances.

How about you? What local banks do you use to transact with Paypal? Do share your experience. :)



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