NEWS New Paypal Fee Structure When Sending Money to Family & Friends

[MoneyTree]

PayPal Just posted a new policy about sending money to family and friends:

We’re removing the variable rate pricing for sending money to friends and family members who have PayPal accounts in a country other than the United States when you send money using PayPal balance or your bank account and introducing a new flat fee of $2.99 or $4.99 per transaction depending on the recipient’s country. However, when you send money using your credit card, debit card, or PayPal credit you will be charged the new flat fee per transaction depending on the recipient’s country + 2.9% of the transaction amount + a fixed fee based on the currency.

Here is the full policy:
https://www.paypal.com/en/webapps/mpp/ua/upcoming-policies-full

The details:

The source: https://www.paypal.com/us/webapps/mpp/paypal-fees#transfers

Fixed fees for sending in other currencies: https://www.paypal.com/us/webapps/mpp/paypal-fees#fixed-fees

Europe includes the following:
*Aland Islands, Albania, Andorra, Austria, Belarus, Bosnia and Herzegovina, Bulgaria, Channel Islands, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Faroe Islands, Finland, France (including French Guiana, Guadeloupe, Martinique, Reunion and Mayotte), Georgia, Germany, Gibraltar, Greece, Greenland, Hungary, Iceland, Ireland, Isle of Man, Italy, Kosovo, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Moldova, Monaco, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Russian Federation, San Marino, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Ukraine, United Kingdom, Vatican City State.

†If funded in a foreign currency, then a comparable amount in that currency, including our Currency Conversion Spread.

 

[Kanvi]

Madness!! I understand they need to make money but this feels more like a rip-off or rather something a monopoly would do. What other alternatives are there to PayPal these days, Xoom, WU?

 

[MoneyTree]

Definitely crazy. Some alternatives include the following:

• Venmo (although they are a subsidiary of Paypal - so they could follow suit) - 3% fee. See the rest of the Venmo fees
• Dwolla - Any transfer over $10 results in a $0.25 fee and sending under $10 is free. The fee is never over $0.25.
• Skrill - Charge of $0.1 when transferring money. View the Skrill fees
• Payoneer - Popular with freelancer sites since they have agreements with them. There are a variety of fees. See the Payoneer Fees.
• Payza - Free if sending to another person. There is a fee for exchanging currencies. See the Payza Fees

 

[CaptainE]

Not really a problem for me as I don’t send money abroad to anyone, but for people who remit money overseas these rates are brutal and if it’s a decent amount a wire would make more sense.

 

[Dagrkkouts]

That would be a problem for me since I send money very often to family and friends abroad. I think I will have to find another way. I will try skrill.

Thanks for the tip buddy.

 

[best]

Paypal has always looked like a ripped off company to me,how did they come up with these fees just for sending money to someone oversees, maybe people should try other payment processors.

 

[Dagrkkouts]

I have already sent a payment as family and friends but they did not charge me a new flat fee of 2.99% for my transaction.
Maybe this policy has not taken place yet!

If anyone knows can he explain?

 

[DimonDhand]

I didn't know about this,I sent some money out 2 days but didn't notice any fees deduction maybe it just to alert us,I don't think it has been implemented yet.

You should write and complain to them '- "How come you don't charge me fees for sending/recieving ?! Please DO and charge! Be nice!"

 

[Tahtah33]

I don't really send money to people but wow I would not use pay pal

 

[Jeanette2091]

Sometimes I just do not understand PayPal.

Bad thing for those who send money to their family abroad. It wont be a problem to as I only use it to cash out my earnings online.

Same do I. But I'm loosing $1 for every transfer I'm make from PayPal to my bank because of their currency. Sadly I cannot use my banks currency, they will not put any fee on it when you change your money from USD to DKK.

 

[Jeanette2091]

Yes I do, but because I'm living in Denmark I cannot use my card. I can only use my bank, when I need to transfer money from PayPal to my bank.

 

[Jeanette2091]

Is it a policy of paypal that you can't link your card if you live in your location?

I searched for it on google and youtube, and only a few can use their cards, but it depends on where you live. I'm still looking for a way.

 

[Jeanette2091]

I hope you can find a way. $1 is also a big amount if you would sum all of your transactions. In my country, most of them transfer their paypal cash to GCash for free.

I hope so too. That's why I'm only transfer money at the end of each month. What is GCash?

 

[Jeanette2091]

"GCash account, it can be used to buy prepaid Globe/TM phone load, send money to any Globe/TM user for free, receive remittance, and even withdraw cash from any automated teller machine (ATM)" i just research its uses. It is exclusive in my country only. The transfer using this is free that's why it is used by many.

Okay thank you. It would have been awesome If there was a way for us in Europe to transfer money without a fee. Maybe there will be some day in the future.

 

[ruthmongare]

Definitely crazy. Some alternatives include the following:

• Venmo (although they are a subsidiary of Paypal - so they could follow suit) - 3% fee. See the rest of the Venmo fees
• Dwolla - Any transfer over $10 results in a $0.25 fee and sending under $10 is free. The fee is never over $0.25.
• Skrill - Charge of $0.1 when transferring money. View the Skrill fees
• Payoneer - Popular with freelancer sites since they have agreements with them. There are a variety of fees. See the Payoneer Fees.
• Payza - Free if sending to another person. There is a fee for exchanging currencies. See the Payza Fees

I actually will prefer going for skrill or payoneer since the fee is less compared to the PayPal fee.For payza, its not working in my country hence cannot be an alternative.