Does Your Bank Charge You When You Withdraw Money From Paypal Into Your Bank Account?

Discussion in Bank Accounts started by Sirius • Jan 10, 2018.

  1. Sirius

    SiriusMember

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    I recently registered at Paypal, because I was about to receive money and the transaction could only happen via PayPal. Anyways, I linked my bank account to my PayPal account. I received the money, it was a small amount and I decided to withdraw it into my bank account. To my big surprise, my bank had charged me a transaction fee worth $5!! This fee was half as much as the amount I'd received. I basically lost 50% of the money in bank fees. My bank's name is Allianz, it's part of the Allianz Insurance Group, which is one of the biggest automobile insurance companies in the world.

    The fee I paid was fixed and the only thing I can think of is to wait until I have more money in PayPal and withdraw a bigger amount, so that next time I pay this fee only once.

    I would like to ask you, guys, is this normal? Does your bank charge you when you withdraw money from PayPal or when you get money into your account from somewhere else? If so, what is the charge? And does anybody know a way for these fees to be avoided?
     
  2. Nakitakona

    NakitakonaActive Member

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    Mine is different. My bank doesn't charge me a single cent if I make a withdrawal. It's my PayPal money processor that is charging me a reasonable fee when I make a withdrawal through my bank or debit card.
     
  3. nangk08

    nangk08Active Member

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    I think it depends on the kind of bank, private banks usually charge a lot of money for all kinds of transactions whereas public sector banks either charge a nominal fee or nothing at all. My bank which is linked to my Paypal account does not charge me any money but the Paypal deducts certain percentage of fees during each transaction. I think you should read your bank's fine print.
     
  4. Krissttina Isobe

    Krissttina IsobeWell-Known Member

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    So far when I transfer or deposit into my bank acct. there is no charge with paypal or my bank. I really like paypal for everything is free. My bank gives us some benefits like notary for free too we just have to have our savings at always $100.00 plus. I like my bank and paypal for we have many benefits.
     
  5. Alexandoy

    AlexandoyWell-Known Member

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    Paypal charges a service fee if the withdrawal from Paypal into my bank account is less than 7,000 Philippine pesos. I just don't know how much they charge because I have never withdrawn a lesser amount. But my bank also charges a minimal fee for the withdrawal of roughly $5. That's fine with me because we have to accept the fact that nothing is free in this world.
     
  6. Sirius

    SiriusMember

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    This is news to me that PayPal charges fees when you withdraw money to your bank account. I thought PayPal was 100% free. It hasn't charged me anything so far... maybe it depends what country you are from?

    I agree that nothing comes for free, but some banks do charge less than others, that's my point. I've just finished doing some research and I found a local bank that charges a fee which is 0.1% of the transaction amount. This will work great for small amounts of money. I guess I'll be switching banks very soon. ;)
     
  7. mildredtabitha

    mildredtabithaActive Member

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    I have never withdrawn directly from my PayPal because I don't know the fee I will experience and I don't want to lose much either. I have linked my ATM card only for verification purposes.


    I have also linked my bank account as a prepayment. This means I pay my bank instead of withdrawing. I only experience a 1.5% fee on any amount I pay the bank because the amount I pay them will be deposited in my account in the local currency after deducting the fees.


    That bank is the only one that has less fees.
     
  8. overcast

    overcastActive Member

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    With paypal I have to pay for currency conversion charges. I have to pay for the incoming and outgoing money in the bank account. So surely each transaction has some charges. So you get the idea that some of the time such bank charges are too much in such case. And we end up paying a lot.
     
  9. Jamille

    JamilleActive Member

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    Paypal always charges the equivalent of $1 whenever I withdraw my funds. The bank, however, doesn't charge me anything for the Paypal withdrawal expect for the minimal ATM fee of $.20. To save on bank charges, it will be helpful to review your options and use the payment channel with the least fees. In my country, a bank isn't the only option to receive Paypal cash.
     
  10. Sirius

    SiriusMember

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    Thank you for the advice!

    May I ask what country are you from and what other options do you have to withdraw money from your PayPal account besides it going straight to your bank account? I think this piece of information would be really useful to everyone on this forum.

    Yesterday I found out that PayPal offer some users PayPal debit cards. This way withdrawing funds into a bank account is avoidable, but the monthly fee for this debit card is $5....
     
  11. iamawriter

    iamawriterActive Member

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    My bank does not charge me but paypal does. It never did that earlier but of late I it doing it. The only plus point is that it immediately transfers my amount into my bank account
     
  12. xTinx

    xTinxWell-Known Member

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    PayPal transfers are free at a certain threshold (please check the site for more details). If you withdraw an amount below that, they'll charge a dollar. But to say that PayPal is totally free is a misnomer. They actually charge a lower exchange rate that the actual, so they'll get around 3 or more percent of your earnings. The bank transaction fee is another story. Rates vary depending on the bank. Some banks charge as high as 5 USD while others stick with 3 USD to make it seem like it's PayPal exchange rates that did that.
     
  13. Sirius

    SiriusMember

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    Well, why would I lie? Here's a screenshot of my PayPal statement. You can see they haven't charged me a cent when I withdrew funds to my bank account. I don't know why!? I wondered if it depends on the country you live in, but it doesn't make sense - the service's rules should be the same everywhere.

    paypal.