Foreign currency feePayPal charges 2.5% regarding the deal value for just about any product priced and offered in a currency that is foreign.

Foreign currency feePayPal charges 2.5% regarding the deal value for just about any product priced and offered in a currency that is foreign.

2. Per PayPal; “when your deal involves a money transformation, it shall be finished at a retail international
trade price quoted to PayPal by a global institution that is financial. this change price includes a 2.5% cost over the exchange that is wholesale at which PayPal obtains foreign exchange, as well as the charge is retained by PayPal. The certain exchange price that is applicable to your numerous money deal will likely to be presented during the time of the transaction”.

Just what performs this mean?

  • Essentially PayPal uses an industry forex rate for transforming your deal money (in other terms. Australian or dollars that are US to New Zealand Dollars, then adds a charge of 2.5% of this deal value for carrying this out. Therefore, anything you offer, you are going to lose 2.5% on foreign currency costs.

3. Bank Transfer fee$1.00 for amounts below NZ$150Free for amounts above NZ$150

4. New Zealand Bank Deposit cost

  • As at March 2016, no brand brand New Zealand bank had been asking for inbound PayPal deposits, nor had plans to do this.
  • Distribution time ranged from same-day to as much as seven days.
  • Of this PayPal account holders we spoke to, over 75% gotten funds within one to two company times carrying out a withdraw request.

Example:1. Item offered for AU$299.50, transacted back into New Zealand Dollars.Transaction charge: 3.9% = AU$11.98 (this really computes to 4.00per cent (two places that are decimal so we have actually PayPal for comment). Balance staying = AU$287.52

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Forex fee: 2.5% of AU$ = AU$7.18 (closest estimate) – PayPal claims to make use of the “most current trade price data”, applying a 2.5% cost together with their “rate data”.

Bank Transfer charge: $0.00, once the stability is over the NZ$150 threshold at no cost transfers.

Total PayPal Fees = AU$11.98 + AU$7.18 =AU$19.16 so that as a % Fee = AU$19.16 / AU$299.50 = 6.4%

But, PayPal mixes within the foreign currency cost whenever you transfer the funds to your bank. Whilst the receipt above illustrates, the total amount staying within the PayPal account is usually to be compensated into a brand new Zealand banking account. The sum total is NZ$302.62


  • To produce feeling of the figures above, also to gain some viewpoint, we asked two brand New Zealand banking institutions, Kiwibank and Wesptac, exactly just exactly how much AU$299.50 (in “cash”) means in brand brand New Zealand bucks. The responses had been nearly identical – $308.73 (Kiwibank) and $308.64 (Wesptac) utilizing their online exchange tool that is foreign. This compares favourably to PayPal’s NZ$302.62 stability, considering charge card costs have already been included.
  • We conclude that for convenience, while 6.4% might seem high, the complete ease of PayPal overshadows the higher-than-expected deal margins.

PayPal Costs – Getting Funds from Overseas Company Transactions

The are four fees that arise with any international repayment into a PayPal account, even as we outline below:

  1. Deal cost (in other words. client will pay you via your internet site)
  2. Currency exchange cost (i.e. money transformation from foreign exchange to New Zealand Dollars)
  3. Bank Transfer cost (in other words. once you withdraw the funds from your own PayPal account into you New Zealand banking account)
  4. New Zealand Bank Deposit cost (exacltly what the bank fees you to definitely get the PayPal money in to your account)

1. Transaction feePayPal costs a regular 3.9% per deal, along with a fee that is”fixed regarding the money received”. We result in the presumption that brand brand New PayPal that is zealand-based account may wish to utilize the platform to “sell on site, through invoice or e-mail re payments overseas” and so this cost base relates. The “fixed paid regarding the money received” identifies the foreign currency cost outlined below.