Can I Use PayPal to Make International Payments?
You can use PayPal to make international payments. It offers flexibility, security, and ease of use for international money transfers. So, most people use PayPal to pay tuition fees, living expenses, gifts, special occasions, rent or accommodation, or miscellaneous expenses.
With PayPal, you can conveniently transfer money to someone with a PayPal account and even to someone who doesn’t have a PayPal account through Xoom, a PayPal service that allows you to send money to your friends and family worldwide. However, there are minimum and maximum amount limits:
- If you don’t have a PayPal account, you can transfer up to USD 4000 once.
- With a verified PayPal account, you can send up to USD 60,000 in a single transaction, but PayPal may limit it to USD 10,000. There is no limit to the total amount of money, except for the LRS imposed limitation of USD 250,000 (INR 20,682,750) per financial year (April-March).
- With an unverified PayPal account, there will be a limit. You can see the limit when you go to send money.
Let’s walk through the process of sending money via PayPal:
Sending Money to Someone with a PayPal Account
Using the website:
Step 1: Log in to your PayPal account.
Step 2: Click on “Send & Request” at the top of the page.
Step 3: Enter the recipient’s name, PayPal username, email address, or mobile number. Then, click “Next”.
Step 4: Enter the amount and choose currency. Then, click “Continue”.
Step 5: Choose your payment type and then click “Next”.
Step 6: Review the information. If everything is correct, click on “Send Payment Now”.
Using the app:
Step 1: Tap $ Payments
Step 2: Enter the recipient’s name, PayPal username, email address, or mobile number.
Step 3: Enter the amount and choose currency. Then, tap “Next”.
Step 4: Choose your payment type, review the information, and then, tap “Send”.
Sending Money to Someone Without a PayPal Account (Using Xoom)
Step 1: Log in to your PayPal account.
Step 2: Click on “Send & Request” at the top of the page.
Step 3: Select “Send money to someone’s phone or email”.
Step 4: Enter the recipient’s email address.
Step 5: Choose the country where the recipient is located.
Step 6: Specify the amount you want to send and choose the currency.
Step 7: Select the purpose (e.g., family support, education, etc.).
Step 8: Click “Continue”.
Step 9: Review the information. If everything is correct, click on “Send”.
Read more: How to pay Canada college fees from India?
Read more: How to Transfer Money From India to Canada for International Students
What options are there to fund a PayPal transfer?
Before sending money via PayPal, you do need to have funds. So, the question arises: “What options do I have to fund transfer?”
Well, you have multiple options at your disposal:
- PayPal Balance: If you have a balance in your PayPal account, you can use it to fund transfers. This is especially useful if you receive payments through PayPal or maintain a balance for other reasons.
- Linked Bank Account: You can link your PayPal account to your bank account. This allows you to transfer funds directly between your bank and PayPal. Once linked, you can easily transfer the money.
- Credit or Debit Card: To use your debit card or credit card, you need to link it to your PayPal account. You can link up to 4 cards to your unverified PayPal account and up to 24 to your verified account.
- PayPal Debit Card: When making a payment, you can use your PayPal Debit Card instead of your PayPal balance. You can transfer money even before you receive your physical card via the digital card. But as soon as you receive it, your digital card will stop working.
What are PayPal’s Fees for Sending Money?
Sending Money Domestically Via PayPal
A domestic transfer is one in which both the sender and receiver are identified by PayPal as residents of the same country. Now, when it comes to the fees for transferring money within a country, the fees will vary based on the payment method used to fund your transfer.
Here are the rates for personal transactions:
| Payment Method | Fees |
| PayPal balance or a bank account | No fees |
| Cards | 2.90% + fixed fees based on the currency |
| Amex Send Account | No fee |
| Visa+ transaction to Venmo Visa+-enabled digital wallets | No fee |
| Visa+ transaction to non-Venmo Visa+-enabled digital wallets | 1.75%A minimum fee of 0.25 USDA maximum fee of 25.00 USD |
Note: The numbers mentioned in the table are subject to changes by PayPal. Last updated on 21/03/2024.
Sending Money Internationally Via PayPal
An international transfer is one in which one of the parties, either the receiver or the sender, is identified by PayPal as a resident of a different country. If you are sending money to another country, then the fees will depend on the payment method. Additionally, the fees include an additional fee on top of the domestic transfer fees.
| Payment method | Fee |
| PayPal balance or a bank account | 5.00%A minimum international fee of 0.99 USDA maximum international fee of 4.99 USD |
| Cards | 5.00%A minimum international fee of 0.99 USDA maximum international fee of 4.99 USD |
| Amex Send Account | 5.00%A minimum international fee of 0.99 USDA maximum international fee of 4.99 USD |
Note: The numbers mentioned in the table are subject to changes by PayPal. Currency conversion fees may apply if currency exchange is required. Last updated on 21/03/2024.
Irrespective of PayPal’s convenience, you could save if you chose HiWiPay.
HiWiPay is designed to be a support system for students and parents who want to send money abroad. With us, you can not only forget about the high markup fees and also the hassle of doing the paperwork over and over again and long bank queues. To transfer your money safely, you must complete the KYC ONCE and digitally submit the A2 Form.
Are there any Hidden Fees for PayPal International Payments?
Apart from the 5% fees on international transactions, you will have to pay currency conversion fees or markup fees.
If you are paying for goods or services, sending money to a friend or family member, or sending money via PayPal payouts, then a 4% currency conversion fee will be applicable on top of the transaction exchange rate. While for any other transaction, a 3% currency conversion fee will be applicable on top of the transaction exchange rate.
How Can I Avoid PayPal International Fees?
PayPal charges high fees for international transactions. You may be wondering if there is any workaround for this. Well, we have the answer for you:
Avoid paying in foreign currency if possible
The main increase in PayPal’s International fees is the currency conversion fee (3% to 4%). If you can avoid currency conversion altogether, then you can save money. All you must do is ensure that your source and destination currency are the same. This way, the charges for an international transfer will be the same as that of a domestic transfer.
To ensure that there is no currency conversion, you can ask the recipient if they will accept the money in your currency. Also, if either one of you has a multiple-currency account, then you guys can send or receive money in one currency.
Avoid paying with a credit card
As per PayPal, if you use your credit card to make international payments fully or partially, you will pay cross-border fees, which will vary depending on your location. Additionally, credit card companies may impose cash advance fees for international payments. So, avoid using credit cards for international payments altogether.
Avoid using PayPal altogether
PayPal’s convenience and security make it a popular choice for many, but you can’t ignore the amount of money you burn transferring money through it. So, avoid using PayPal altogether.
You can use HiWiPay instead! The case study above clearly shows the amount of money you will save when you send money through HiWiPay. With HiWiPay, you can forget about the high markup fees and transfer your money safely.
Send larger amounts in a single transaction
PayPal collects a maximum fee of 4.99 USD for an international transfer. So, if you send larger amounts in a single transaction, then you can save more money. For example, if you send USD 100 to your child who is studying abroad weekly, you will pay USD 5 per transaction. This means that you will pay USD 20 fees per month. But if you send 400 at once for the month, then you will only pay USD 5 fees, saving USD 15 per month. But if you use HiWiPay, its low transaction fees can help you save much more!
FAQs on how to save on paypal international fees
What are the main types of fees associated with PayPal international transactions?
The following are the main types of fees associated with PayPal international transactions:
- Transaction fees: 5%
- Conversion fees: 4%
- Credit card or debit card fees: 2.90%
Fixed fees: USD 0.99 to 4.99 (depending on the currency)
How can I avoid currency conversion fees on PayPal?
You can avoid currency conversion fees on PayPal by:
- Avoiding payment in foreign currency if possible
- Avoiding payment with a credit card
- Avoiding using PayPal altogether
- Sending larger amounts in a single transaction
Are there alternative payment platforms with lower international fees than PayPal?
Yes, there are alternative payment platforms like HiWiPay with barely any markup fees. To understand how it is better than PayPal, go through the case study above.
Can batch processing help reduce PayPal international fees?
Batch processing can potentially help reduce PayPal international fees through consolidated payments, lower fees for larger amounts, and efficiency. However, it is important to note that while batch processing can potentially reduce transaction fees, it might not always be the best option depending on your specific circumstances. For example, if the payments are for different purposes or need to be recorded separately for accounting purposes, batch processing might not be suitable.
Are there any hidden fees to be aware of when using PayPal for international transactions?
Yes, there is a 3% to 4% currency conversion fee on top of the transaction exchange rate.
References
Delfino, Devon. “Yes, PayPal Does Work Internationally — Here’s How to Transfer Funds between More than 200 Different Countries.” Business Insider, 21 Nov. 2019, www.businessinsider.com/guides/tech/does-paypal-work-internationally?IR=T#:~:text=1%20Yes%2C%20PayPal%20does%20work%20internationally.%20…%202. Accessed 4 Apr. 2024.
“Fees | PayPal Consumer | PayPal US.” Www.paypal.com, www.paypal.com/us/webapps/mpp/paypal-fees#:~:text=set%20out%20below.-. Accessed 4 Apr. 2024.
“Liberalised Remittance Scheme.” Rbi.org.in, 6 Apr. 2023, www.rbi.org.in/Scripts/FAQView.aspx?Id=115#Q9. Accessed 4 Apr. 2024.
“My Wallet | PayPal US.” Www.paypal.com, www.paypal.com/us/cshelp/topic/help_wallet_personal. Accessed 4 Apr. 2024.
“PayPal Fees for Customers – PayPal India.” Www.paypal.com, www.paypal.com/in/webapps/mpp/paypal-fees. Accessed 4 Apr. 2024.
Rozsa, Adam . “What Are PayPal International Fees and How to Avoid Them?” Wise, 10 Feb. 2023, wise.com/us/blog/paypal-international-fees-usa. Accessed 4 Apr. 2024.
“What‘s the Maximum Amount I Can Send with My PayPal Account?” Www.paypal.com, www.paypal.com/us/cshelp/article/what%E2%80%98s-the-maximum-amount-i-can-send-with-my-paypal-account-help286.
“Xoom Help Center.” Xoom.com, help.xoom.com/s/article/xoom-basics?language=en_US. Accessed 4 Apr. 2024.
