Can I use PayPal to send money internationally?
Yes, you can certainly use PayPal to send money internationally. The company supports international money transfers to over 200 countries and can process your transfer in a few working days. If you’re going to be using PayPal to send money abroad, it’s a good idea to familiarize yourself with the fees that will be associated with this type of transaction.
Here, we’ve covered the PayPal fees and charges associated with sending money internationally from a U.S. PayPal account. It’s worth keeping in mind that charges may change depending on where you are sending from.
PayPal international transfer fees
When sending money internationally from a PayPal U.S.A. account, you should first understand what costs will be associated with this way of sending money abroad. The two main costs to be aware of are PayPal’s fixed fee structure plus the conversion fee for converting your currency (essentially, the exchange rate).
Using PayPal to send money to friends or family within the U.S. with your PayPal account is free, but sending money to another country does come with fees. PayPal will charge you up to 5.00% of the transaction amount for personal international payments.
This transaction fee assumes that you are making the international transfer from your PayPal balance. If you were to pay for your transfer with a credit card or debit card, you’d be charged a funding fee of 2.9% plus a fixed fee which depends on the currency involved in the transfer.
Currency conversion fee
The second cost you need to be aware of when using PayPal to transfer money internationally is the conversion rate applied to your transfer.
The currency conversion rate is applied to the base exchange rate for converting between the two currencies involved and can range from 3.75 – 4% depending on where you are sending to.
This is a similar process applied by most banks and money transfer operators, although the exchange rate you are offered may be higher or lower than what is offered by competitors. You’ll be able to see the difference in the mid-market exchange rate (considered the most accurate and ‘fair’ rate for sending money on any given day) by looking it up on Google and then comparing the exchange rate you are offered by PayPal.
Why are these fees important to know?
When you take fixed transfer fees, currency conversion fees, and fees for using a debit or credit card all into account, it’s easy to fee how quickly the costs can add up when sending money internationally with PayPal.
This can amount to either your recipient losing a significant portion of the funds you are sending in fees or you paying more than you expected to transfer your money. With so many alternative options for international transfers available today, it’s worth informing yourself of the costs involved and deciding if you can get a better deal elsewhere.
Alternatives to using PayPal to send money internationally
PayPal is a well-known service for sending money both domestically and internationally, as well as for making online payments. However, that doesn’t mean it’s your only option. If you want to consider some alternatives to PayPal for sending money internationally, you have a few options:
Use an alternative money transfer service
In the past couple of decades, there has been a significant increase in the number of companies able to offer quick international money transfers for low fees.
Specialist money transfer operators will usually have a digital focus to make sending money internationally as convenient and hassle-free as possible. Most do involve both transfer fees and a markup on the exchange rate (although some, such as TransferWise, offer transfers at the mid-market rate with a fixed fee while others, such as XE, offer transfers with no fees but add a small markup onto the exchange rate).
Ultimately, the best provider for you will depend on a number of mitigating factors to do with your transfer. Things that can affect this include:
- Where you are sending from
- Where you are sending to
- What payment option you want to use
- How you want your funds to be delivered to your recipient
Our comparison engine provides a real-time breakdown of the best money transfer providers for your specific transfer, so you can accurately compare your options based on costs, speed, security, and more.
Send money internationally with your bank
Another alternative to using PayPal to transfer money is to use your own bank. There are pros and cons to this option.
On the upside, using your bank is a familiar option that some users may feel more comfortable with. Additionally, all you need is your recipient’s bank details and name to set up a transfer, rather than needing to provide additional verification of your identity as may be required with a money transfer provider.
However, using your bank to send money internationally often comes with high fees – potentially even higher than sending with PayPal – and slower transfer times. Be prepared for an international transfer with your bank to take anywhere up to 5 working days, factoring in the additional delay weekends or bank holidays can contribute.
Also, if you are interested to learn how to transfer money from a bank account to PayPal instantly, you can take a look at our guide.
How to send an international transfer with PayPal
Follow these steps to make an international transfer with PayPal:
Log in to PayPal: Go to paypal.com and log in to your account.
Navigate to Send: Go to the ‘Send & Request’ tab and select ‘Send Money Abroad.’
Select Country: Select the country you are sending to
Choose Delivery Method: Choose how you want the funds to be delivered to your recipient. If you are sending money to
someone who does not have a PayPal account, you might find that you are directed to Xoom, which is also owned by PayPal but has slightly more flexible options for sending money abroad.
Enter Amount: Enter how much you would like to send and the currency you are converting to.
Check the Fees: You should automatically be shown the fees you will be charged and how much your recipient will receive on the other end. If you are happy with all the information
displayed, click ‘Next.’
Enter Details: Enter your recipient’s details (email address or phone number).
Confirm and Send: If you’ve confirmed all the details are correct, you can click ‘Send Money’ and complete the transfer.
Bottom line: Is sending money internationally with PayPal the best option?
PayPal supports international transfers to over 200 countries and is used by millions of people to send payments every single year. It’s a well-known company, has a clear and easy-to-use process for sending money, and has a secure way of getting your money to your recipient.
That being said, you may find that there are cheaper and faster alternatives for getting your money abroad. Use our comparison engine to find a real-time analysis of the best money transfer services for you based on cost, speed, and more.
FAQs
Does PayPal take money from your bank account immediately after a transaction?
No, PayPal does not take money from your bank account immediately after a transaction. Instead, the funds are transferred from your PayPal balance or linked bank account to the recipient’s PayPal balance within a few business days. However, instant transfers can be arranged for an additional fee. It is important to make sure that you have enough funds in your PayPal balance or linked bank account to cover any transactions. Otherwise, the transaction may be declined.
How long does it take for to transfer money from PayPal into your bank account?
According to PayPal, it typically takes 1-2 business days for the transferred funds to become available in your bank account. However, this timeframe can vary depending on your bank’s specific processing times. If you need access to the funds sooner, you can also use a PayPal instant transfer, which allows for immediate transfer of funds for a small fee.
How long does it take to send money from one PayPal account to another?
How much does it cost to send money from one PayPal account to another?
The cost of sending money from one PayPal account to another depends on the payment method used, the country the funds are being sent from, and the amount being sent. Generally, there is no fee for sending money to friends and family within the United States using a bank account or PayPal balance. For other payment methods or international transfers, a transaction fee of 2.9% plus $0.30 USD may apply. To see specific fees for your transaction, you can use the PayPal fee calculator before sending money.
How do you put money into a PayPal account?
There are several ways to add money to a PayPal account. You can link a bank account or debit/credit card and transfer funds from those sources, or you can also use PayPal Cash or PayPal Cash Plus service to add cash at select retailers. Additionally, you may be able to receive funds from friends or family members, or from companies that you do business with through PayPal.
Can you use PayPal for wire transfers?
No, PayPal is primarily used for online transactions and sending/receiving money to individuals or businesses. It cannot be used for wire transfers, which typically involve larger sums of money and are done through a bank or other financial institution. To conduct a wire transfer, you would need to visit your bank or use their online services.
Does PayPal offer competitive rates for international money transfers?
Yes, PayPal offers competitive exchange rates for international money transfers. In fact, they often offer better exchange rates than traditional banks or currency exchange services. Additionally, PayPal offers low fees and fast transfer times for international transactions. However, fees may be higher than many money transfer companies for some currencies and certain receiving countries. It is always recommended to compare exchange rates and fees before making a transfer with PayPal or any other service.
What alternatives to PayPal are there?
Some alternatives to PayPal include Stripe, Apple Pay, Google Wallet, Square Cash, and Amazon Payments. Each of these payment platforms offers different features and services, so it is important to consider your specific needs before choosing a provider. For example, Apple Pay and Google Wallet are primarily used for in-person transactions through mobile devices, while Stripe and Square Cash offer more robust online payment options. Amazon Payments is integrated with the e-commerce giant’s platform, making it a convenient choice for businesses selling on Amazon. Ultimately, the best alternative to PayPal will depend on the individual’s or business’s specific needs and preferences.
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Sources
- //www.paypal.com/uk/smarthelp/article/how-does-paypal-calculate-currency-conversion–exchange-rate-faq1835
Yasmin Purnell is a Content Writer and Editor for MoneyTransfers.com. Having over 5 years’ experience writing across a range of industries including finance, insurance, and travel, Yasmin joined the team with a mission to make international money transfers and everything they encompass accessible to all.