17 November 2007

Withdrawing from Paypal - The Issues!

This is probably one of the biggest issues Malaysian have when selling Internationally. Since anyone can setup a Paypal account, just by registering with an email address, but for the most of us, it would be difficult to withdraw the Paypal funds.
The sad thing is that we in Malaysia would not be able to withdraw the money directly into our local banks. If you were staying in Thailand or Singapore, you would, but not for us poor Malaysians.

You can buy many ebooks from online teaching you how to withdraw money from Paypal or ebooks teaching you how to set up an US bank account. I have personally bought all the books and read every single one. I'll tell you now, save your money and just follow my free advise.

Methods to withdraw from Paypal
  • Withdrawing to one of the overseas banks in US, UK, Australia, Singapore or one of the listed countries. And from that overseas bank, you could TT back to Malaysia, or just use the bank's ATM card to withdraw in Malaysia. You can check the list of Countries that Paypal supports via this link.
  • Withdrawing to your local Malaysian Credit, Debit or Prepaid Card.
  • Selling your Paypal funds to other Malaysians who are able to withdraw their money.

Withdrawing to an Overseas Bank
I personally have an Australian bank account while I was residing in Australia. I have also applied for an US bank account through an agent while in Malaysia. I would say that applying for an Oversea Bank account would be the best option for long term trading.

Option 1:
I would like to say that, there are many ebooks out there that promises you the ability to apply for an US Bank account. You could try and apply for it after reading those ebooks at Etrade.
I had opted for the safer approach and went through an agent. I would say that "Don't risk it and get it done right, the very first time." Sure enough, I got my account approved within 3 weeks of application. It was worth every penny I paid for, as there would be a phone interview from Etrade. Of course, my agent had already armed me with all the possible questions and recommended answers.

Option 2:
Alternatively you could apply for a Hwang DBS account in Singapore. I was told that you don't need to be a Singapore resident and you wouldn't need a Singapore address to apply.

If you have noticed, both the options stated above, you are actually apply for a online trading account. Yes it is probably the only way they would grant you an bank account. All online trading accounts would need to be linked to a Bank account. Naturally when you apply for a Online Trading account, you receive both the trading account and a bank account linked to it!

Withdrawing to your local Malaysian Credit, Debit or Prepaid CardUntil like a month ago, we at Malaysia had no way of withdrawing our Paypal funds. Only recently they had introduce the ability withdraw to your Credit, Debit or Prepaid Cards. To withdraw via this method, there would be a $5USD fee involved and a maximum of $500USD withdrawal limit per day.
I would recommend this method when you are starting off on selling Internationally. If you are only starting off this is the most convenient method available. Only the you have huge amount of Paypal funds, you may consider applying for an overseas Bank account.
I have tried withdrawing via this method and will write more about it in another post.Full withdraw instructions available from the following eBay link.

Selling your Paypal fundsThis is probably the most unsafe method there is. At times desperate people would do desperate things. How it works is that, you offer to sell your Paypal funds to another Malaysian. They would normally transfer the agreed amount to your Malaysian bank account, while you send the agreed Paypal funds to their account. It may not be the best method, as you would not get the best exchange rates and you may not sell all your Paypal funds in one transaction. Trading your funds itself is another ball game... Is it safe?
You can view these trades at the following link.

I would recommend withdrawing your money into your registered Credit, Debit or Prepaid Card that you had registered with eBay. This is probably the most convenient method for the most of us, specially when you are just starting off selling on eBay.
When you have consistent sales, I would like to trade long term, you should apply for one of those Overseas Bank account.

1 comment:

dano said...

Your blog has been a big help. I learnt a lot from it. Thanks.