
PayPal is one of the most commonly used money transfer services in most countries. Considering that it’s one of the easiest ways to transfer funds both locally and internationally, the service also takes pride in its security. You can make online purchases without having to input your credit card details all over again, make and receive payments, and make online transfers a breeze. It’s hard to imagine life without PayPal, considering that it has completely changed the e-commerce industry.
Because of its popularity, PayPal is now the top choice for most individuals. The said platform is almost perfect, except that it charges ridiculously high fees, especially international transfers. PayPal has international fees on top of their regular fee. You’ll have to pay an additional 2.9% of the total amount to transfer. A calculator can help you out to calculate your PayPal fee depending on the currency conversions.
If this is a one-time payment, you may not think that this is too much. But, if you’re sending international payments, whether you’re buying items abroad, sending money to family or friends, or have outsourced your business to freelancers from different parts of the world; the international fees may add up, and you’ll realize that it takes up a considerable chunk of money out of your pocket. Did we forget to mention that PayPal has lower currency exchange rates too?
If you’re planning on doing international transfers, you have to understand that you’re not stuck with PayPal’s high fees. There are some workarounds to it, and understanding your options can help you save money.
Personal PayPal Transfers Have Minimal Fees
Compared to regular transactions, personal PayPal transactions have minimal fees. If you use a PayPal fee calculator, you can get to know the exact fee on each transaction. A personal transaction is a great option you can go with if you’re sending money to family or friends. Whether it’s a one-time transfer or a recurring transfer, the personal option might be your best bet if you’re sending it to people that you know.
Take note, though, that you don’t want to do this if you’re making an online purchase. Personal payments aren’t refundable. This means that you can’t file for a refund or dispute if the seller fails to deliver the goods you’ve purchased. From the name itself, personal PayPal transfers are for personal and not commercial transactions.
Use Your PayPal Balance
When you send personal payments using your credit or debit card, the sender covers a minimal transfer fee. You can get rid of the transaction fee entirely by adding funds to your PayPal account. You may use your savings or checking account to add money to your PayPal balance. When you send personal payments using your PayPal balance, the transfer is free. How cool is that?
Consider Using Third-Party Money Transfer Services Other Than PayPal
While most individuals now use PayPal, you must know that there are other money transfer options available to you out there. Some of these have lower international fees, such as TransferWise or Xoom. There are many others, and it’s just a matter of finding the right service suitable for your needs. Some of these third-party money transfer services have special rates for specific countries. Check which one offers the lowest transfer fees to your chosen country and take it from there.
When using a third-party money transfer service, a little bit of research goes a long way. Find which ones offer competitive rates, and make sure that you consider other factors such as customer service and security as well—only process payments from websites that make use of a secured or encrypted web page. If you don’t see the “lock” sign on your browser, you might want to re-think and find another service out there. The last thing you’d like to happen is for your bank account details to be leaked to third-party companies.
The great thing about money remittance services is that the funds go directly to your recipient’s bank account. Unlike PayPal, it won’t go to a virtual wallet where the recipient has to transfer the money from their e-wallet to their bank. TransferWise and similar services can send the money straight to the receiver’s bank. It may not reflect real-time, but it’s cheaper.
Conclusion: Can You Avoid PayPal International Fees?
Not entirely, but the ways mentioned above can help reduce. The only way to get rid of the international fees would be to send money using your PayPal balance and use the personal payment option. Be careful when making personal payments, and this may not be intended for everyone’s situation.
Weigh your options. Would you instead send money and have it credited in real-time, or would your recipient be willing to wait for a couple of days before the funds would reflect on their bank account? Check your needs, compare money remittance services, and see which amongst these options are best suited for your needs.