How to withdraw money from PayPal

Hannah Conway
5 minute read

If you’ve got money in your PayPal account, you’ll want to know how to withdraw the balance. You can either transfer it to a bank account, or use a linked debit card to withdraw money from an ATM.

It’s worth checking out the fees and charges for the services you need in advance - especially if you need to convert your balance from one currency to another. Or you can use this free PayPal calculator to calculate PayPal fees. You may want to consider an alternative, such as a TransferWise multi-currency account to get low cost currency conversion with no exchange rate markup.

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PayPal Exchange Rate

PayPal charges a currency conversion fee if they have to convert the currency of your funds.

This means that they’ll likely take the mid-market exchange rate - which is the rate you’ll find on google or using an online currency converter - and then add a mark-up to it before converting your currency. The margin added will depend on the currency, and the exact transaction you’re carrying out.

Let’s say you hold a balance in US dollars, after a client paid you using PayPal for some freelance work. You want to transfer this money directly to your UK sterling bank account. In this case, the exchange rate you’ll get will be the base exchange rate, plus a markup of 3.75% if your PayPal account was opened in the UK. The same transaction from Australian dollars would include a 4% markup.¹

How do I withdraw money from PayPal?

If you want to withdraw money from your PayPal account, you can withdraw funds to your own bank account online or using the PayPal app.

How to transfer money from PayPal to bank account

If you want to get money out from your PayPal account, you can withdraw funds to your own bank account online or using the PayPal app. If you want to transfer the money online, here’s what you’ll need to do:

  1. Log into your PayPal account, and go to wallet.
  2. Click Withdraw money option.
  3. Choose the account you want to send money from, and select a linked bank account.
  4. Confirm the amount to withdraw, and click continue.
  5. You’ll have one final chance to review the amount and the account details, before you confirm the transfer.
  6. Using the PayPal app, you simply go to your PayPal balance, and tap withdraw money.

If you’re moving money to your registered UK bank account, it is usually available in your bank account within just a couple of hours.²

How to get PayPal balance for a better rate

Exchange rate matters when you need to send and receive money in other currencies, so how do you ensure you get a fair rate?

Option 1: Convert your balance first with PayPal

If you want to pay less, one option is to switch your funds first within PayPal - and then make your withdrawal. That’s because the exchange rate applied for currency conversion without withdrawal includes a lower exchange rate margin of 2.5%.¹

Option 2: Use TransferWise to avoid the exchange rate markup.

Looking for an alternative to PayPal? TransferWise can help.

Receive money for free, to spend in any currency or send money around the world at the real exchange rate. You can easily send any money you hold on your balance to your UK bank account, or you can use a debit MasterCard to access your money whenever, or wherever you happen to be.

If you hold a PayPal balance in sterling, and want to send it to a bank account held in a different currency, a better option might be to withdraw your funds in pounds to a TransferWise account, and convert the money at the real exchange rate, with a small transparent fee. This means no mark-up.

Save on international payments with TransferWise - get the real exchange rate
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PayPal Fees: How much does PayPal charge?

Here’s a roundup of the most common withdrawal costs you need to know about, to get you started.

Service PayPal fee
Withdraw funds to registered UK bank account - no currency conversion Free.
Withdraw funds to a bank account - including currency conversion 3%-4% currency conversion fee (exchange rate markup).

It’s also important to remember that some banks may charge to receive incoming payments - you’ll need to check your account terms and conditions for details. The currency conversion fee will depend on the currency, and the way in which you withdraw your funds.¹

*Full details of the exchange rate markups used, by currency, is available online at the PayPal website. Details on how to reduce or remove this markup, coming right up.

Paypal debit card

If you want to convert PayPal to cash, then you’ll need a PayPal debit MasterCard to spend the money held on your account. In order to get a PayPal debit card, you’ll need to have a PayPal Business account. At the time of writing, PayPal doesn't offer a linked debit card for personal customers in the UK. If you have a PayPal Business account, then you will be able to spend your PayPal balance conveniently, online or in stores.

If you don’t have a Business account with PayPal, but you still want to spend with a linked debit card from a convenient online account - there are alternatives out there, such as the TransferWise foreign account with a linked debit MasterCard.

It lets you spend for in any currency you hold on your account, and withdraw up-to the currency equivalent of £200 a month from ATMs for no fee. There’s no exchange rate markup, if you need to switch from one currency to another - just a small transparent fee.

Contact PayPal

If you’re already a member of PayPal, you can get in touch easily by signing into your account online. If you don’t have a PayPal account, you’ll need to contact their customer service team as a guest. Here are a few ways to get advice or answers, from PayPal:

  • Check out the PayPal online help centre, which has FAQs on many common topics.
  • Use the community forum or resolution centre, available online, for help with specific issues relating to your account.
  • Email or chat with a service advisor, if you’re already a member, by logging into your PayPal account online.
  • Call customer services as a guest on 0800 358 7911, or log into your account online to get the right number to call based on your particular issue.³

Getting your money out of your PayPal account isn’t difficult, but there are charges you should know about before you make a withdrawal. Compare your options, including the best ways to access and convert your money via PayPal. Also, consider alternatives to PayPal like a TransferWise multi-currency account. See if you can save with TransferWise, today.

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Sources used:

  1. PayPal: User Agreement, A3.2.1
  2. PayPal: How do I withdraw money from my PayPal account balance
  3. PayPal: Contact Us
    Sources checked on: 29-January 2020.

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.

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