PayPal fee for sending money to family. When fees is applied?

alex-75
Contributor
Contributor

Hi,

 

There are 2 accounts, one in UK  (Account_UK)  and one in Italy (Account_IT).
Both are Family accounts, I usually use the "send to family/friend" function.

I always sent EUR from Account_UK to Account_IT with "0" fees.
Now in Account_UK I have some USD and want to send it to Account_IT (as USD). There are fees? Why?
Both the account manage the USD currency, thus there is no exchange at all.

Also with GBP it seems to have fees.

 

For all the cases the source and destination currenc are the same (no exchange) and already "managed" by the Account.

Why for EUR transfer there are no fees and there are fees for USD or GBP?

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3 REPLIES 3

PayPal_JonK
Moderator
Moderator

Hello @alex-75, thanks for reaching out on our Community Forum. Sorry to hear there's some confusion when sending funds from one account to another when using different currencies. We may be converting the currency depending on the receiving account's Primary Currency. If you are sending funds in USD or GBP, but the receiving account's Primary Currency is set to EUR, then the system will try to convert it to EUR to place the funds in the receiving account's Primary Currency balance. This may be different for payments sent / received as goods & service payments. Thanks again for reaching out to us via our Community Forum, have a great day!

 

 - Jon K


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alex-75
Contributor
Contributor

I still think something is wrong.
I changed both the PayPal accounts main currency to USD. 

 

1. UK USD account.

I opened a new HSBC UK bank account with USD currency. The account held ONLY USD currency (NO GBP).

I tried to connect it to the PayPal UK account but I still cvannot see the 2 small transfer (less than 0.50 GBP) to validate the account for payments.
Maybe because the account is USD (?). 
I tried to transfer 10 USD but the system try to convert it to GBP and there are obviously fees.
My conclusion: PayPal do not recognize UK account in USD currency.

 

2. PayPAl USD to PayPal USD.

As said I changed the main currency of both the IT and UK accounts to USD.

When I try to send USD from an account to the other I still see FEES, from 1.24 to 2.49 USD (depends on the amount).
It is "Sending to a friend or to family" and there are no exchange because both the account have USD as main currency.

 

Why both the operation require to pay fees ?

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PayPal_Martin
Moderator
Moderator

Hi @ alex-75,

 

Even if your bank offers a USD currency option, PayPal will still only use the UK currency, this is dictated by the IBAN as this would be UK number beginning with GB. It is only possible to have an actual US bank account with USD as the currency. If you have such a bank account you will need assistance from our Custom Support to add this to your account

You will find details of our fee structure here. The fee is waived for domestic payments when no currency conversion is involved or within the EEA in Euro or Swedish Krona. 

 

I hope this explains the issue and fees. 

 

Thanks

 

Martin

 

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