Can You Transfer Money Through Paypal Internationally

Frequently Asked Questions

How are PayPal fees calculated?

Here are the fees typically charged by PayPal for international transfers.

A transaction fee of 5% of funds transferred with a minimum of $0.99 and maximum of $5.99 for the transaction fee from a PayPal account or a bank account linked to PayPal
An funding fee of 2.6% of the funds transferred + fixed fee + currency conversion if you pay with credit or debit card. This funding fee has no cap so can get very expensive.
A currency conversion fee from 3%

Example: Sending money from Australia to the US, UK or Canada

- $100 payment/transfer with PayPal account or bank account = $5 + currency conversion.
- $100 payment/transfer with credit card or debit card = $5 + $2.60 + $0.30 or £0.20 + currency conversion.
- $1,000 payment/transfer with PayPal account or bank account = $5.99 + currency conversion.
- $1,000 payment/transfer with credit card or debit card = $5.99 + $26 + $0.30 or £0.20 + currency conversion.
- $10,000 payment/transfer with PayPal account or bank account = $5.99 + currency conversion.
- $10,000 payment/transfer with credit card or debit card = $5.99 + $260 + $0.30 or £0.20 + currency conversion.

Are there any hidden PayPal fees?

To say PayPal's Australian fee structure is complicated would be a big understatement. With 23 major headings, over 20 tables and over 8,000 words, it's not for the faint-hearted.

The essential takeaways are that you and / or the person receiving the money can expect to pay anything between 0.5% and 7.5% in fees to transfer money internationally (before taking exchange rates into account).

Because PayPal tends to charge percentages, rather than fixed fees, the more money you transfer, the more you will end up paying in fees.

Tip: Fees vary depending on where the payment is being sent from, the method of payment (bank account/PayPal balance, debit card or credit card) and the payment destination. It's worth doing some research and comparison to check you're getting a fair deal.

What other options are there to transfer money internationally?

1. A Bank

Banks in Australia have higher fees and uncompetitive exchange rates but this doesn't mean you should never use them. Using a bank is also the quickest way to transfer money internationally.

2. Peer to Peer (P2P)

Instead of wiring money overseas through a bank, P2P companies that make these types of transfers match people buying currency in one country with people who are selling it in another. Wise (formerly known as TransferWise) and CurrencyFair are two of the biggest companies that offer P2P transfers and send your money this way. They are cheaper and faster than using banks.

3. A Money Transfer Company

Money Transfer Companies like XE and WorldRemit are often the cheapest option when you are sending between $1,000 and $1,000,000 at a time. This is because they offer better exchange rates and lower (and sometimes no) fees. The downside to using a transfer company outside of a bank is that you'll have to set up an account with them first. This can take between 10 minutes and 2 days depending on how much information they need from you. Also, the transfer itself will usually take 1 day longer than using a bank.