PayPal is a digital financial services company that operates in more than 200 markets around the world while processing transactions in more than 100 currencies. Customers can electronically send and receive money using an email address without ever knowing their recipient’s bank account information.
Depending on the type of transfer and the destination, fees can vary.
- For domestic transfers to family and friends, there is no fee when the transfer is funded by your PayPal balance or a bank account that's linked to your PayPal account. For domestic transfers that are either fully or partially funded by a credit card, debit card or PayPal Credit, there is a 2.9% transaction fee.
- For international transfers to family and friends, fees on transfers funded by your PayPal balance or a linked bank account can range from .3% to 1% depending on the destination country. For international transfers funded either fully or partially by a credit card, debit card or PayPal credit, fees can range from 3.4% to 3.9% plus a fixed fee around $0.30.
- When money is transferred as part of the buying or selling process, a separate fee schedule is used. Buying in the U.S. is fee free, but selling incurs transaction fees. Domestic sales incur a fee of 2.9% plus $0.30 and international sales are charged a 3.9% fee plus a fixed fee based on the type of currency.
Depending on the type of transfer and what currencies are involved, the delivery speed can vary.
- When transferring money from your PayPal balance (or a linked debit or credit card) to an existing PayPal user, the money will usually be withdrawn from your account within 24 hours.
- When transferring money from a U.S. bank account, the transaction may take three to five business days.
- When sending money abroad, the transfer process may take seven business days.
Founded in December 1998, PayPal has its corporate headquarters in San Jose, California, in addition to having its worldwide operations center located in La Vista, Nebraska. The company has an A+ rating with the BBB and has nearly 200 million active account holders. The company has an annual revenue of over $10 billion and an annual total payment volume of over $350 billion. The PayPal platform also includes Braintree, Venmo and Xoom.
If you're looking for a cheap and easy way to send money to friends and family, PayPal is a great solution. The digital company lets you avoid the hassles of writing checks and keeps your own bank account information private. Even if your friends don’t already have a PayPal account, they can easily create one online for free without either of you having to make an inconvenient stop at a bank. Because paying with a PayPal balance or linked bank account makes domestic transfers fee free, there’s no better way to send money locally. Of course, international fees are still quite competitive.
This is what we love about PayPal:
- The fee for domestic transfers is waived as long as the transaction is fully funded by your PayPal balance (or a bank account that has been linked to your PayPal account). The fees for other types of domestic transfers and for international transfers are low.
- Many of your friends probably already have a PayPal account and signing up for one is free.
- Your bank account information is kept private and you don’t need to know your friend’s bank account information either.
- Transfers can be made conveniently online or via an app.
What We do not Like About PayPal:
- The transfer speed of funds going from a bank account to PayPal can be slow.
- PayPal doesn’t have physical branches to make in-person transfers, which may be a drawback for some individuals.