Personal Finance

Paypal transfer out USD

  • Last Updated:
  • Jul 9th, 2020 12:32 am
[OP]
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Jan 23, 2006
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Paypal transfer out USD

I need to take out some USD from a PayPal account without getting dinged with their ridiculous exchange rates. I need to send some money to Europe, which I would like to fund with PayPal if possible

I tried to sending through Xoom, but it only allows to use PayPal to fund if sending from US to US.

Any other app that I can use that can be funded by PayPal?

Thanks
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dmehus wrote: @Bull Dog can tell you what services he doesn't recommend. ;)
Yes,@dmehus is correct, I don't recommend Transferwise Multi Currency account as they aren't reliable as far as I am concerned since they are currently holding my funds in my Borderless account hostage for 60 days after deactivating my account for no reason. But it would be most convenient way,

If you have a USA chequing account you can transfer the money from Paypal to that account. And then you can use that account to fund a money transfer through XE, OFX or even Venmo ( a Paypal company ) . If you don't have a USA chequing account maybe you could get a PayPal USA Cash Card, and fund the money transfer from the Cash Card. I've never tried getting a PayPal cash card, but it sounds possible if you can get hold of that card.

@titaniumtux may know a better way.
Last edited by Bull Dog on Jul 6th, 2020 7:14 pm, edited 1 time in total.
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djredhat wrote: I need to take out some USD from a PayPal account without getting dinged with their ridiculous exchange rates. I need to send some money to Europe, which I would like to fund with PayPal if possible

I tried to sending through Xoom, but it only allows to use PayPal to fund if sending from US to US.

Any other app that I can use that can be funded by PayPal?

Thanks
@Bull Dog also doesn't recommend Revolut, either. ;)

What's the dollar value you're looking to move? On $1,000 or less, it's not that much extra to go through your bank, especially with banks like CIBC, Scotiabank, or HSBC which don't charge for the wire transfer and only add in the FX spread. Assuming the typical spread is 0.2-0.25 (2-2.5%), that's only $2.00-2.50 per $100 converted. For the lack of hassle on smaller amounts, $20-40 seems a reasonable cost on $1,000 or less.

For larger amounts, I'd go with Agility Forex, though I've never dealt with them, or Norbert's Gambit if you have a discount brokerage account and a few weeks to allow your trades to fully settle.

Cheers,
Doug
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dmehus wrote: @Bull Dog also doesn't recommend Revolut, either. ;)

What's the dollar value you're looking to move? On $1,000 or less, it's not that much extra to go through your bank, especially with banks like CIBC, Scotiabank, or HSBC which don't charge for the wire transfer and only add in the FX spread. Assuming the typical spread is 0.2-0.25 (2-2.5%), that's only $2.00-2.50 per $100 converted. For the lack of hassle on smaller amounts, $20-40 seems a reasonable cost on $1,000 or less.

For larger amounts, I'd go with Agility Forex, though I've never dealt with them, or Norbert's Gambit if you have a discount brokerage account and a few weeks to allow your trades to fully settle.

Cheers,
Doug
I'm not AS down on Revolut anymore because I saw how Transferwise is even worse, it's all relative :) But Revolut isn't available yet.

I don't see how OP is going to get the money in USD out of Paypal into Agility Forex or into a broker for Norbert's Gambit without having a US bank USD account as intermediary step.
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Bull Dog wrote: I'm not AS down on Revolut anymore because I saw how Transferwise is even worse, it's all relative :) But Revolut isn't available yet.

I don't see how OP is going to get the money in USD out of Paypal into Agility Forex or into a broker for Norbert's Gambit without having a US bank USD account as intermediary step.
True, just talking currency exchange. Can you not transfer fee-free with the CIBC Global Money Transfer or does it have to be from a Canadian bank account? He could also transfer it out from his USD side account at his discount brokerage or Agility Forex to any USD bank account in Canada that permits USD wire transfers. Then just investigate the fees for transfer. Wire transfer fees have come way down.

Cheers,
Doug
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dmehus wrote: True, just talking currency exchange. Can you not transfer fee-free with the CIBC Global Money Transfer or does it have to be from a Canadian bank account? He could also transfer it out from his USD side account at his discount brokerage or Agility Forex to any USD bank account in Canada that permits USD wire transfers. Then just investigate the fees for transfer. Wire transfer fees have come way down.

Cheers,
Doug
Good point, but if he has account with TD or Royal Bank it might be just as easy to open up a real USA USD bank account. ( ie. TD Harris or RBC Bank (Georgia) )
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OP's problem is how to get the USD out of their Paypal account without getting dinged by Paypal's 3% FX markup.

Best to withdraw to a US bank account and go from there. If OP doesn't have a US account, Transferwise Borderless *may* be an alternative. I was able to link my Transferwise Borderless USD account as external bank account to my Canadian Paypal address and withdraw USD to it, but this was 1 or 2 years ago. Recent DPs suggest this may not be possible anymore so YMMV. If it works, you can then transfer to Europe from there at a reasonable fee. Unlike Bull Dog, my experience with TW has been great and I've been using them for 7 or 8 years.

If the amount is low and it's a one-off, I'd probably just eat the Paypal fee and convert to CAD and withdraw to a Canadian account, and then use Transferwise to transfer to EUR. I would not use any of the Big 6 international transfer options as they have high FX markup (on top of what you already lost to Paypal) and typically use SWIFT wire transfers which can incur unpredictable additional charges from intermediate and receiving banks. Transferwise and comparable services on the other hand use local transfers in the destination country (SEPA in EUR countries) which are fast and free.
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rhw123 wrote: Unlike Bull Dog, my experience with TW has been great and I've been using them for 7 or 8 years.
If you look at reasons that Transferwise may close your multicurrency account , an unacceptable one is the one I bolded, which is if they feel you have breeched any provision of their agreement, which in my case was that my 20.00 transfer to my own Monzo account was unable to be completed, because Monzo is not great with receiving foreign funds. Maybe you haven't done any more intricate foreign transactions so haven't incurred their wrath, but if you don't believe me, check out Google Play Store reviews or trustpilot, and you will see alot of complaints similar to mine:

25.2 We may suspend or close your TransferWise Account without notice in certain circumstances. We may at any time suspend or close your TransferWise Account and/or end this Agreement without notice if:

(a) you breach any provision of this Agreement or documents referred to in this Agreement;

(b) we are requested or directed to do so by any competent court of law, government authority, public agency, or law enforcement agency;

(c) we have reason to believe you are in breach of any applicable law or regulation; or

(d) we have reason to believe you are involved in any fraudulent activity, money laundering, terrorism financing or other criminal or illegal activity.
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Also, @rhw123 there is nothing that Transferwise does that Revolut can't do cheaper. Since both fintechs are very aggressive at freezing your account and closing your account one might as well choose the cheaper one. Both of them are only suitable for small money transfering, it's actually cheaper to use Knightsbridge, OFX, XE
or Agility Forex for larger amounts of money. Once Revolut comes to Canada I'll be happy to see Transferwise going the way of Paypal because people will get tired of paying the higher fees of Transferwise.
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rhw123 wrote: est to withdraw to a US bank account and go from there. If OP doesn't have a US account, Transferwise Borderless *may* be an alternative. I was able to link my Transferwise Borderless USD account as external bank account to my Canadian Paypal address and withdraw USD to it, but this was 1 or 2 years ago. Recent DPs suggest this may not be possible anymore so YMMV.
I think @someweirdo transfers USD from his Canadian Paypal to his Transferwise Borderless. Maybe he can comment if he read this.
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Bull Dog wrote: I think @someweirdo transfers USD from his Canadian Paypal to his Transferwise Borderless. Maybe he can comment if he read this.
Yup, that's what I do. A Canadian PayPal account lets you link not only Canadian bank accounts, but also American bank accounts. (Not bank accounts from any other countries, though, sadly.) So I was able to link Transferwise to PayPal using the routing information Transferwise provides. Moving USD from PayPal to Transferwise takes a business day. Then converting USD and depositing into my Canadian bank account as CAD takes another business day, or I can get it the same day if I make the transfer in the morning. My Canadian bank (Motive) doesn't put a hold on these deposits.

There may be a way to avoid even more conversion fees by getting an account with a real American bank and using it instead of Transferwise, but I've yet to work out the details on how to do this. But simply using Transferwise instead of PayPal for currency conversion already saves me a ton of money.

For the op's use case, once their money is in Transferwise, they can send it directly to their European friend. I haven't done this, so I'm not sure exactly how it works, but it's possible.
Bull Dog wrote: Also, @rhw123 there is nothing that Transferwise does that Revolut can't do cheaper. Since both fintechs are very aggressive at freezing your account and closing your account one might as well choose the cheaper one. Both of them are only suitable for small money transfering, it's actually cheaper to use Knightsbridge, OFX, XE
or Agility Forex for larger amounts of money. Once Revolut comes to Canada I'll be happy to see Transferwise going the way of Paypal because people will get tired of paying the higher fees of Transferwise.
Can any of these FIs be linked to PayPal, though?
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someweirdo wrote:
Can any of these FIs be linked to PayPal, though?
At the moment Revolut doesn't give you a Canadian bank account number, that's why you have to load it with credit cards and debit cards, so not yet. And for OFX etc, they also can't be linked directly to Paypal, I think deliberately on Paypal's part. That's why if OP has lots of American funds to deal with he would be better getting an American bank account through TD ( ? cheapest ), Royal Bank or BMO and then a lot more opportunities for transfer will open up.
[OP]
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Thanks guys. It’s not a huge amount (about 1k US), but it’s annoying when you get dinged with fees twice - it amounts to almost $50.

I have sent in the past with Transferwise without issues. I might try to withdraw to my TW US account.

What happens if TW closes your account? Do you lose your money?
iamalittlepepper wrote: Non of the Royal Purple is BMW qualified which voids your drivetrain warranty.. especially for those who owns the 3.0L N54 engine
tcjsqls wrote: you have no ideas how a report of stolen credit card (...) affect your credit. Happened twice in your history, that bank won't issue a credit card for you
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djredhat wrote: Thanks guys. It’s not a huge amount (about 1k US), but it’s annoying when you get dinged with fees twice - it amounts to almost $50.

I have sent in the past with Transferwise without issues. I might try to withdraw to my TW US account.

What happens if TW closes your account? Do you lose your money?
They would hold it for a while, then refund it.
But most likely you'll be fine.
Let us know how it goes.
[OP]
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Hmm, how do I link Wells Fargo to my Paypal account?
iamalittlepepper wrote: Non of the Royal Purple is BMW qualified which voids your drivetrain warranty.. especially for those who owns the 3.0L N54 engine
tcjsqls wrote: you have no ideas how a report of stolen credit card (...) affect your credit. Happened twice in your history, that bank won't issue a credit card for you
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djredhat wrote: Hmm, how do I link Wells Fargo to my Paypal account?
Wallet > Link a bank > (type something random in the search box) > Enter your bank details > Link a U.S. bank instead > (enter routing and account number)
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Bull Dog wrote: At the moment Revolut doesn't give you a Canadian bank account number, that's why you have to load it with credit cards and debit cards, so not yet. And for OFX etc, they also can't be linked directly to Paypal, I think deliberately on Paypal's part. That's why if OP has lots of American funds to deal with he would be better getting an American bank account through TD ( ? cheapest ), Royal Bank or BMO and then a lot more opportunities for transfer will open up.
Does Revolut give you an American account number? This would, in theory, allow you to link it to a Canadian PayPal account.
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djredhat wrote: Thanks guys. It’s not a huge amount (about 1k US), but it’s annoying when you get dinged with fees twice - it amounts to almost $50.

I have sent in the past with Transferwise without issues. I might try to withdraw to my TW US account.

What happens if TW closes your account? Do you lose your money?
Transferwise has deactivated my account and hijacked my money since June 7- one month. Supposedly they will return it after 60 days, we will see. Meantime I'm waiting for UK Financial Ombudsman to respond to my complaint.
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someweirdo wrote: Does Revolut give you an American account number? This would, in theory, allow you to link it to a Canadian PayPal account.
There's no Revolut bank numbers in any of the currencies. So you can only add money to Revolut by adding a debit or credit card within the app. But you can transfer out to any bank account anywhere in the world.

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