What are the ways to withdraw money from PayPal? How to settle foreign exchange?

Now many friends use third-party payment platforms. So whether you are doing e-commerce or cross-border e-commerce, all the payments need to be withdrawn before they can appear in your Alipay bank card. What are the ways to withdraw money from PayPal?

What are the ways to withdraw money from PayPal?

At present, there are two main ways to withdraw funds from independent websites to China through PayPal:

1. One is to directly wire transfer to a domestic bank account and then convert it into RMB. In this case, there is a limit of 50,000 USD in RMB conversion per year. Moreover, many friends have encountered situations where wire transfers to domestic accounts are rejected or returned.

2. One is to use a third-party platform for transfer, such as Payoneer and Worldfirst, and then withdraw the money. The specific form is: PayPal-Payoneer (or Worldfirst)-domestic bank card. The advantage of this method is that it is fast and can usually be credited to the account within 1-2 days. There is no limit of 50,000 US dollars per year, and it is also a method that is used by many people.

How to settle exchange?

Anyone who does foreign trade knows that due to restrictions imposed by the State Administration of Foreign Exchange, the annual foreign exchange settlement limit for individuals is US$50,000. Once the US$50,000 limit is used up, other channels must be found. For PayPal users, there are currently several commonly used foreign exchange settlement methods on the market.

1. When your 50,000 USD limit is used up, you need to find your immediate family members’ ID cards to complete the foreign exchange settlement. Each immediate family member has a limit of 50,000 USD. What if it is used up? Moreover, many people have reported that some banks do not accept PayPal USD now, especially those that refuse to accept payments from public to private parties. Otherwise, they will ask you to provide materials. If the amount exceeds 5,000 USD, you need to declare it, which is time-consuming and laborious.

2. Underground banks. It has to be said that there are quite a few merchants who use this method, mainly in coastal areas. However, the disadvantage of this method is that going to the bank to withdraw cash and exchange it for RMB is definitely illegal, unsafe, and has a high risk factor.

3. Foreign third-party platform channels. If your source of funds accepts payments from many foreign third-party platforms, there are many payment platforms that can directly convert them into RMB for withdrawal. Transaction vouchers from the payment platform are also required. However, the general fee is around 1%, such as Amazon's P card, WF card, PP, Lianlian, etc.

4. PayPal transfers to Hong Kong offshore. Offshore accounts are now strictly checked, especially after the release of CRS (Encyclopedia: refers to the promotion of automatic exchange of tax information between countries. It is currently being implemented in various countries step by step and is expected to fully cover all members in 2018). It means that merchant funds will be transparent. The functions of tax evasion or other purposes through offshore accounts will be greatly restricted. In the future, opening offshore accounts will become more and more stringent, and the cost of opening offshore accounts is not low.

5. Or it is a way of foreign exchange settlement derived from local policies. For example, Yiwu and Chongqing have special foreign exchange settlement policies, and both are free of charge. The Yiwu model is a large trade export zone, and the country has policy support. Merchants can withdraw unlimited cash by opening individual businesses; the Chongqing model seems to be that many companies are doing foreign exchange settlement now, and they help individuals break through the limit of foreign exchange settlement through cooperation with banks, which is also quite convenient.

There are many ways to withdraw money from PayPal. You need to pay a handling fee when withdrawing money on this platform. Under normal circumstances, the handling fee for withdrawal is charged according to the relevant proportion. Now many platforms require a handling fee for withdrawal.

Recommended reading:

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