I can’t believe I forgot to tackle this in my previous #AskMomOnDuty posts, so here we go – How much does it cost to withdraw from PayPal to your local Philippine bank?
Why use PayPal?
PayPal is a popular payment gateway among Filipino freelancers. Aside from it being secure and a no brainer even to the first timer, it can also be easily linked to a bank in the Philippines.
Although its cost is slightly higher than other options, I find it the easiest to use for myself and my clients. They don’t have to go to a bank to pay for my services. All my clients have to do is to pay the invoice online using their credit card or the fund in their PayPal account, I receive the payment in my PayPal account, then I withdraw it to my bank.
How to Withdraw from PayPal to Your Philippine Bank
New to PayPal? To withdraw your funds, log into your PayPal account then go to My Account. Click on Profile then Add/Edit Bank Account. Put the bank name, bank code, and account number. Important: Make sure that your PayPal name and Bank Account name are exactly the same. Otherwise, you’ll risk having your withdrawn funds reverted back to your PayPal account minus $10.
Once you’ve linked your local bank to your PayPal account, go to My Account then Withdraw. Under the options, choose the bank account you want to send your funds to, add the amount, then click Withdraw Funds. You’ll be redirected a confirmation page with a summary of your withdrawal and will also get an e-mail from PayPal with your withdrawal details.
Paypal Withdrawal Fee to Philippine Banks
The Paypal withdrawal fee to Philippine banks vary. But, before we go to that, note that withdrawals under Php 7,000 will be charged Php 50 automatically upon confirming your withdrawal request. Withdrawals Php 7,000 and up are free of charge. So, if you can wait, wait until you have at least Php 7,000 in your account before withdrawing. Sayang din ang 50 pesos mo!
Okay, onto the bank charges.
Paypal to UnionBank: This is what I personally use and prefer because it costs nothing. Nada! All you need is the UnionBank EON card (you can apply for one online) and link it to your Paypal account. Note: Withdrawals from PayPal to UnionBank EON are free, but the EON card has a renewal fee.
Paypal to BPI: Prior to discovering the UnionBank EON card, I used to withdraw my Paypal funds to my BPI account. Each withdrawal costs Php 150; although some say they were charged up to Php 200.
Paypal to BDO: I haven’t personally tried this, but other online workers I know said that one withdrawal from Paypal to BDO will cost you Php 200 to 250.
Most withdrawals are processed for 2-4 business days. Weekends and holidays are excluded so take note of those when you’re withdrawing. I usually withdraw on Wednesdays. When I do, my withdrawal is reflected in my account either by Thursday evening or Friday morning.
Do you use PayPal to accept and make payments too? Or do you recommend something else? Comment below to let us know what you recommend!