Published: February 27, 2020 | Updated: April 21, 2020 | Posted by: Venus Zoleta | Personal Finance
In this technologically advanced era, it’s hard to imagine life without a PayPal account. Signing up on PayPal is your rite of passage to adulthood—it allows you to perform financial transactions over the internet, like shopping online, sending money, and receiving payments.
While PayPal helps make online transactions a lot easier, faster, and safer, it can seem complicated and overwhelming for first-time users. This is why we’ve come up with this comprehensive guide to creating and using a PayPal account in the Philippines.
Table of Contents
It’s free to sign up on PayPal. No registration fee is involved. All you need to set up an account with PayPal are your computer or smartphone and an internet connection. Below are the steps to help you begin.
PayPal offers two types of account with features catering to different needs: personal and business. Before you register with PayPal, it’s important to decide on the type of account to set up.
A personal account on PayPal is suitable for the following users:
You need a business account on PayPal if you’re running an online business registered under a company name. A business account allows your business to accept PayPal as a payment method, helping you attract more customers who prefer to pay for their purchases via PayPal.
Freelancers receiving payments from their clients can also benefit from having a business account with PayPal.
A PayPal business account allows you to do the following:
PayPal is so easy to use that you don’t need to submit any forms or documents (unless you’ll be making high volumes of transactions) to start sending or receiving money.
To accept payment via PayPal, all you need to do is to provide the person who’ll send you money with the email address you’re using to log in to your PayPal account. Make sure you’ve confirmed your email address after signing up for an account.
To send money through Paypal, you need to have a confirmed email address on your PayPal account. You should also link a credit or debit card to your account, so you can start making a PayPal money transfer.
Linking your credit and/or debit cards to your PayPal account is a crucial step you shouldn’t skip. Once you’ve added your cards to your account, you can start using PayPal conveniently and safely for making online payments and money transfers.
PayPal makes it quick and easy to send money to another PayPal account holder with an email address or mobile number. Here’s how:
Your recipient will then receive an email notification from PayPal that they’ve received money on their PayPal account. If the recipient doesn’t have an account yet, they’ll be instructed on how to create one.
Making payments for goods or services purchased online is also possible on PayPal. The process is quite similar to sending money to family and friends. Here’s how:
The seller who’ll receive your payment will be the one shouldering the PayPal fee.
The traditional way to cash out PayPal balance is to transfer it to a savings or checking account. It’s the slowest and most expensive PayPal money transfer method, but it’s your only choice if you have no digital wallet like GCash and Coins.ph.
Here’s how to send money from PayPal to BPI or any bank account in the Philippines:
Transferring your PayPal balance to your GCash account is a money-saving option because no withdrawal fee is charged. This makes withdrawing with GCash a great idea for freelancers, small business owners, and anyone who regularly receives money on their PayPal account.
But first, you need to link your PayPal account to your GCash account. Here’s how:
Unlike with GCash, there’s no way to directly transfer PayPal balance to a Coins.ph account. However, you can still make a PayPal money transfer to Coins.ph through GCash. Here’s how:
Note that GCash charges a PHP 10 transaction fee for funds transfer to Coins.ph. Then Coins.ph will also charge you a PHP 10 fee for cashing in from GCash.
PayMaya is another cheap and quick option for withdrawing your PayPal balance. You can transfer a minimum of PHP 500.
To do so, you should have at least PHP 100 in your PayMaya wallet and link your PayMaya and PayPal accounts (Refer to “How to Link a Credit Card to PayPal” in the previous section).
After linking your PayMaya and PayPal accounts, you can start transferring your PayPal balance to your PayMaya account.
How soon you’ll receive your PayPal funds depends on where you transferred your money. Typically, money transfers get completed faster using a mobile wallet than a bank account.
For first-time PayPal to bank transfers, PayPal may temporarily hold the funds received in the bank account for several reasons.
At a glance, here’s a table showing how long you can expect to receive money using different PayPal fund transfer methods.
|Recipient Account||Processing Time|
|GCash||Within 24 hours|
|Coins.ph (via GCash)||Within 24 hours|
|PayMaya||2 to 4 business days|
Certain PayPal transactions come with a fee, which is deducted from the transferred amount.
Here are the PayPal fees in the Philippines you must know:
|PayPal Transaction||PayPal Fee|
|Receiving payment for goods and services (international)||4.4% of the paid amount + PHP 15|
|Receiving payment for goods and services (domestic)||3.9% of the paid amount + PHP 15|
|Withdrawal via bank account||Withdrawing PHP 7,000 and above – None|
Withdrawing less than PHP 7,000 – PHP 50
|Standard withdrawal via Visa debit card||PHP 50 regardless of the withdrawn amount|
|Instant withdrawal via Visa debit card||1% of the withdrawn amount|
|Returning of funds to PayPal account due to incomplete or incorrect information in the withdrawal request||PHP 250|
Using your PayPal account may be confusing and frustrating at first, but it will get smoother as you get the hang of it. Just remember to double-check your transaction details every time, so you won’t encounter issues in your PayPal money transfer or payment.