#Foreign transaction fee full#

Here’s how you can best avoid paying full costs with PayPal’s international transaction fees:įund transactions using your PayPal account. While there isn’t a way to avoid PayPal’s transaction fees altogether, there are ways to mitigate cost. For international transfers and business transactions, there are transfer fees as described above as well as merchant fees for goods and services.ĭepending on the size and frequency of international transfers, the cost starts to add up.

#Foreign transaction fee free#

PayPal is free only for personal payments made to friends and family within the United States. PayPal boasts competitive exchange rates comparable to banks and currency exchanges. When you transfer money from your PayPal account to your personal bank account, PayPal automatically converts your funds into your bank’s local currency.

This helps them determine the retail foreign exchange rate to apply to currency conversion transactions. PayPal then adds a percentage to the wholesale rate quote. Twice a day, PayPal receives a wholesale rate quote from their bank. PayPal uses a specific process to set their exchange rate. This means the recipient will receive less than the market exchange rate and the sender will have to factor that into their payment. Unlike the fixed percentage fee for transferring to another PayPal user, Xoom adds a mark up to the current market rate.įor example, if the currency exchange rate from EUR to USD is 0.913, Xoom might offer to process the transfer at a slightly lower rate of 0.902. Because Xoom is owned by PayPal, the two work seamlessly together and the transfer can be funded from a PayPal account or linked bank account. On the other hand, in order to transfer directly to a recipient’s bank account, you’ll need to send the payment via Xoom. See the table below to better understand how these fees are applied. PayPal also charges a 4.5% fee for conversion service, so it’s important to factor this cost in as well to any currency conversion you do. PayPal’s currency conversion fee to US or Canadian dollars is 3.5%, but is 4% for other currencies. PayPal’s International Currency Conversion FeeĪdditionally, if the sender needs to convert to a different currency before sending, the currency conversion fee is 4% or a different percentage amount if disclosed to you during the transaction.

#Foreign transaction fee plus#

If the transfer is funded by a credit card, debit card, or PayPal credit, a funding fee of 2.9% plus a fixed fee (based on the currency used) is also applied. This assumes the transfer is funded by a PayPal balance. When sending money directly to another PayPal account, PayPal charges 5% of the transaction with a minimum fee of $0.99 and a maximum fee of $4.99. PayPal offers two different payment methods for international money transfers and each has its own fee structure.

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