The Cost Of PayPal For International Payments

When it comes to sending or receiving money, PayPal comes to mind instantly. With over 200 million users worldwide, the brand is the go-to money transfer service.

There’s no doubt that that PayPal is an excellent service for sending or receiving money domestically – but they aren’t necessarily the best option when your transfer is international.

The reason is simple. They charge excessive fees and rates on transfers abroad.

When it comes to domestic transfers, PayPal doesn’t charge any transfer fees as there is no currency conversion involved. The only expense is when a credit or debit card is used to complete the payment. PayPal is such a convenient option locally, and this is why people often assume that it’s their best option for international money transfers.

So, what is the cost of using PayPal?

When we look at PayPal’s international fee structure – an 8000-word document – it’s tricky to understand the in’s and out’s of how we get charged.

But looking at the key information, we find that PayPal charges users three different ways on international transfers. One being a cross-border fee, two an additional fixed fee if you fail to pay directly from your PayPal balance (using your debit or credit card) and three, a cost for your currency conversion.

Cross-border fee’s from PayPal can vary from 0.5% to 7.5%. The rate you pay depends on where the money is sent from, how the transfer is paid (credit, debit or PayPal) and where the money is being sent. You can find this all in the fine print, but trust me, we’ve saved you some time here. It’s tricky to find.

Looking at the fine print, it’s hard to understand how much each international transaction will cost. It’s also worth noting that as PayPal runs a percentage based fee structure, it’s likely that you’ll be charged higher fees for larger transfers.

When we look at the actual currency conversion itself, PayPal states that they charge between 2.5% – 4.5% for personal payments. Knowing the current exchange within PayPal isn’t made easy, and it’s often only after your transfer that you see the extent of your fees.

PayPal is an outstanding business, and for domestic money transfers, they provide exceptional service. But when we break the numbers down on international transfers, it’s clear that they don’t stack up as a financially viable option.

This is important to know especially if you make regular international payments.

What’s the best option then?

Here at BFX, we provide currency conversion rates from as little as 1.5%, and no international transaction fee’s on transfers over $5000AUD.

And while our free BFX online account makes payments simple, our friendly team is always here to help you out over the phone. We understand that on large transactions for businesses, or international property purchases professional guidance and advice is important.

We love seeing our clients get fantastic results on their transfers and saving them money.

Here’s to getting better results on international money transfers.

BFX Money Transfer – Trade Smarter


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BFX Money Transfer is regulated in Australia as a designated remittance provider with the Australian Transaction Reports and Analysis Centre (AUSTRAC), remittance sector registration number: IND1000519571-001. Australian Company Number (A.C.N) 611 376 820. Member of LEI Identification Number 5493001WDPYLPVM7RZ80.

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