Overcome PayPal Withdrawal Problem
Options to Withdraw PayPal Funds for Those in Blacklisted Countries
Withdrawing funds is not automatically available for all countries. For those who are affected, here are several alternatives to withdraw funds from PayPal.
PayPal is one of the leading e-commerce tools on the Internet. Those who are interested in e-commerce or setting up an e-business are strongly recommended to use PayPal as their payment system online. However, PayPal does not support withdrawal of funds from all countries (for a range of reasons) and this therefore makes it difficult for businesses / individuals operating in "blacklisted" countries to withdraw funds from the system.
Here are some options such businesses / individuals can use to receive their cash from PayPal. There are risks, costs and benefits of each alternative. Weigh them carefully before engaging in any one of these transactions.
Sell Your USD to an Approved PayPal User
Here, an approved PayPal user is a PayPal user who lives in an approved country, such as the United States or the United Kingdom. This person is able to withdraw funds to his or her bank account and therefore faces no problem in being able to receive the value of money sitting in his or her account.
You may send your USD to this person's account and liaise with him or her directly to wire transfer the money into your local bank account. You may want to "buy" your currency for a lessor value to provide this person with an incentive for his or her help.
This option should only be used if you trust this person. You may never receive your funds if you do not know him or her. Family members living abroad may help but it is up to you to weigh the risks before engaging in such a transaction.
Open a Bank Account with an American Bank in an Approved Country
If you are neighbouring a country that is approved by PayPal, you may want to open a bank account with an American bank there. This is a rather popular method for Malaysians - they open bank accounts in Singapore; withdraw PayPal funds into their American bank account and, finally, wire transfer the funds to their local account. Alternatively, frequent trips to Singapore allow them access to their money.
If you are planning to use this method, find out the regulations of opening a bank account in your neighbouring country. There may be costs involved and bear in mind the cost of the wire transfer as well as the double exchange rate your money has to go through, (i.e. in this instance: from USD, it is converted to Singapore dollars and then only to the Malaysian Ringgit). If you are planning for frequent visits, you want to consider travel expenses.
Withdraw Funds to your Debit or Credit Card
A new feature incorporated into PayPal is the ability to withdraw funds into your debit or credit card that you have incorporated into your PayPal account. Apparently, before doing so you are required to verify your debit / credit card in the system. Once that has happened, you may proceed to withdraw funds into your card.
There are a few limitations though by using this system. Currently, only certain debit cards are compatible with this withdrawal method; similarly, only Visa credit cards are able to have funds withdrawn to them.
Several other factors also need to be considered when using this process. How much money do you wish to keep in your debit / credit card? Does your debit / credit card provider allow you to withdraw funds from your card into cash? If yes, what are their conditions and what are their costs in doing so?
Again, this is a personal choice and it is up to you to weigh the costs against the benefits of using this method.
Open a Bank Account with ETrade
ETrade is an online financial facility that provides financial services to over 40 countries worldwide. It acts exactly like a bank. Since it is an American based service provider, PayPal recognises ETrade as an American bank. If you wish to withdraw funds and have them channelled through ETrade, firstly, open an account with ETrade. The process may be lengthy due to their strict observance of security; this is a reassurance for the consumer. Once this is done, you may register your ETrade account with PayPal and withdraw funds to your account.
To finally receive the money, have your funds wire-transfered to your local bank account. There is a cost to the wire transfer, as there is a cost to all other options.
At the end of the day, it is up to you to weigh the risks, costs and benefits of these alternatives. PayPal is still one of the leading payment systems used by buyers and merchants online, thus even those in "blacklisted" countries need to find a way to overcome its limitations.
