Am I being charged when I withdraw money to my bank account?

[mmp997]

I have a Hong Kong paypal account.  I can withdraw to my New York account or to my Hong Kong account, both of which are HSBC, the former being a USD account, the latter HK$.  Previously I was never charged when I withdrew money to my New York USD account.  Now, suddenly, a US$ charge has appeared when I attempt to transfer to my New York bank account (apparently 2.5%). Yet on Google when I ask "Is there a fee to transfer money from PayPal to my bank?" the answer is: "PayPal does not charge any fees when you transfer money from your PayPal balance to your bank account. Some banks may charge a fee for transfers. Contact your bank directly for more information. You can also transfer money from your PayPal balance by requesting a check."

I don't think anything has changed my end, so I presume that Paypal has added a new charge. Is this correct?

[sharpiemarker · Accepted solution]

@mmp997 

PayPal generally doesn't charge a fee to withdraw to bank if your PayPal account is US and withdrawing to US bank account opened on US soil. In any other cases, fees may apply. Maybe before they didn't notice or catch it but you were lucky and now the free meal is over. Could it be that your PayPal account is HK.

Please contact customer service to be sure:

Click HELP at the top menu, scroll down to click CONTACT US, and then scroll down to click CALL US.

Say "Live Agent" to the automated recording.

Or check the fees schedule:

Exhibit A - Fees.

[mmp997]

Yes I see the scale of charges, which reflects what you say.  This means that I lose 3.5% when people pay me, and 2.5% when I withdraw the money (withdrawing in HK$ makes no sense).  So my total cost of using Paypal is 6%.   I find the idea that Paypal should have not noticed before unlikely.  It seems they have changed their policy.  Also it seems a little deceptive.  What's on Google clearly says: "PayPal does not charge any fees when you transfer money from your PayPal balance to your bank account."  Paypal in Hong Kong is unusual in that withdrawal in two currencies is offered as a matter of course - in US$ via any US bank account, and in HK$ via a Hong Kong bank account.  So far as I know withdrawals in other Paypal locations MUST be in local currency, though it is true that I haven't investigated locations like Panama and the Caribbean.

[mmp997]

This is very unfortunate.  For international US$ businesses without a base in the US, having a Hong Kong Paypal account was previously a solution, allowing withdrawals in US$.  Now that is effectively over, since Paypal has begun imposing a really absurd fee for US$ withdrawals. 

For my business - I need to search for a Paypal alternative.

These charges are just unacceptable.

[KayaTravel]

I have the same issue. we are Uk based with a US bank It is going to cost us thousands to get hold of our money now, when it was free before. I am going to move to Stripe because of this. They have confirmed that they do not charge this fee.  PayPal have really started to let down their small businesses. They used to be good, but they don't seem to care any more 😞 !