PayPal Adds $5.99 Fee To International Transfers

It never feels good to pay money to send your money so PayPal is twisting the knife with a $5.99 fee on international transfers to a "friend and family member."

A user on /r/Australia has spotted a nasty little fee in PayPal's latest financial services guide, released earlier this month.

Now when you make a personal transaction to a "friend or family member" overseas you will have to cough up $5.99. Use a credit card and you'll have to pay a currency conversion fee plus 2.6 percent PayPal skims off of the top. That small percentage that PayPal takes has itself increased from 2.4 per cent.

It's getting expensive to move money around with PayPal. Then again, it was never cheap.

This new fee is a part of a number of policy changes that PayPal rolled out on April 5. If you're anything like me you probably got the email notifying you of these changes and went cross-eyed. Few people actually read Terms of Service agreements so it's not hard for companies to make changes like this without people noticing until they get stung.

The $5.99 fee only applies to personal transactions sent overseas. The fee does not apply to transactions within Australia or for commercial transactions, which have their own transaction fees you can see spelled out here.

Correction: The article originally used the term 'transaction' instead of 'transfer' in several instances where it was inappropriate.

[Reddit]


Comments

    Has there been any statement from Paypal as to justification?

    That seems like double dipping to me.

    A little while ago I had made comparison summary between the 2 of the most popular ways to send money online, Transferwise and Currencyfair. Here's the details - (FYI affiliate links that benefit new customers and me within)

    The online services are much better than the banks. So I've just spent a bit of time analysing the main 2 that people use Currencyfair and Transferwise and listed the details of it here.

    So which one was better? Overall the winner was Transferwise. Which gave $3AUD better overall including all rates/fees based on a £3500 transfer.

    Although there are some important things to note which in my opinion made Transferwise the clear choice.

    Transferwise gave a guaranteed rate (Which was also higher than Currencyfair) as long as the funds were received by them within 24hours. Where as in the fine print Currencyfair gave an approximate rate and allow for a 3% buffer where they can still process without letting you know it's changed. In my case that means I could potentially have lost $180 if their rate dipped.

    Transferwise indicated a transfer time of 1 day, Currencyfair indicated 5 days (This was because of the weekend and Public Holiday coming up - It's only an extra business day).

    Transferwise allows you to use Debit or Credit Cards to pay funds in (extra fees apply) as well as your bank account where as Currencyfair only allows Bank Account.

    So while on the surface they both seem quite similar after looking at them in depth there's definitely some clear advantages with Transferwise.

    Both have some decent promos for the first time users which might sway your decision-

    Currencyfair
    This link gives you €30 in your account (after your first transfer of at least €2000)
    https://www.currencyfair.com/?channel=RJPHS1

    Transferwise
    This link gives you a fee free transfer of up to £500 (Need to send at least £200)
    https://transferwise.com/u/danielg1011

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