Although PayPal is one of the most popular ways to send money internationally, it’s also one of the more expensive. The fee for sending a transaction between two PayPal accounts diverges on whether the sender and receiver are both in the same country or not. Let us talk about How to Avoid PayPal Fees When Sending Money Internationally to friends & family.
For transactions within the same country, there is a fee of 2.9% plus $0.30 USD per transaction with a minimum fee of $0.60 per transaction. For transactions that cross borders, there is a fee of 3.4% plus $0.30 USD per transaction with a $10 minimum per transaction! That’s as much as 10x as expensive just to send money from person to person!
Why does PayPal have such high fees?
There are a few reasons why PayPal has such high fees for international money transfers. First, PayPal is not a bank and doesn’t have the same economies of scale. Second, PayPal charges a currency conversion fee, which can be up to 4%. Lastly, PayPal also charges a receiver fee, which can be up to 3%. While these fees might seem high, they are actually quite reasonable when you consider the alternative: using a traditional bank. Traditional banks typically charge much higher fees for international money transfers, so PayPal’s fees are actually quite competitive.
Related:
- How Much Does PayPal Charge to Receive Money (Internationally & Locally)
- How to Send and Receive Money Using PayPal In 2022 ( Ultimate Guide)
How to avoid PayPal fees when sending money internationally to friends and family
If you’re looking to send money internationally to friends and family, there are a few ways to do so without paying PayPal’s fee. One way is to use a service like TransferWise, which offers competitive rates and doesn’t charge a fee.
Another option is to use your bank’s international transfer service, which may have lower fees than PayPal. You can also ask the recipient to sign up for a PayPal account, which allows them to receive money without paying a fee. Whichever method you choose, be sure to compare fees and exchange rates before making a decision.
How to avoid PayPal fees when sending money internationally to a business
If you’re looking to send money internationally to a business without paying PayPal’s fee, there are a few options available to you.
One option is to use a service like TransferWise. TransferWise allows you to send money abroad without paying any hidden fees or markups. They also have a handy borderless account that gives you access to local bank accounts in multiple countries. This can be helpful if you need to make frequent international payments.
Another option is to use a prepaid debit card like the ones offered by Neteller or Entropay. These cards can be loaded with funds and used to pay businesses overseas without incurring any fees.
Finally, you could simply ask the business you’re sending money to if they would be willing to accept a bank transfer. This is usually the cheapest way to send money internationally, but it’s not always possible.
Whichever method you choose, make sure you compare the costs before sending any money overseas.
Conclusion
So there you have it — a few methods for sending money internationally without paying PayPal’s fee. While each method has its own set of pros and cons, hopefully, this gives you a starting point for finding the best option for your needs. Do you have any other tips for avoiding PayPal’s fee? Share them in the comments below!
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