PayPal to local bank almost like withdrawing to credit card

Posted January 31st, 2008 by Head Geekette

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A couple of days ago I talked about PayPal allowing withdrawals to a local Philippine bank account. So I went ahead and tried it out. The results are a bit daunting though. Let's look at the outcome of the finally successful test withdrawal.

I withdrew US$10 on January 29, 2008. PayPal converted it and deducted a PhP50 fee. So what was to be deposited into my BPI account was PhP359.10. It came out on account as a "SIMS PAYROLL" credit memo for PhP 206.80. Now, do the math. I just got deducted a total of US$4.76. It's almost like that of withdrawing to a credit or debit card! It seems that the only difference is how fast you get it. But I'm curious as to how BPI computes for the deduction. If they deducted it as a percentage value, it comes out to a 28.4879% deduction. Or perhaps a flat rate of US$2.50? What I'm worried is that if it's a percentage deduction, it might be cheaper to just withdraw to a debit or credit card rather than to a local bank account.

So, exactly how does BPI compute the deduction? Could anyone enlighten me about the formula?

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Comments

paypal to bpi

On March 13th, 2008 Elijah (not verified) says:

I received almost the same deduction when I tested it and withdrew 10$ .. let me try a higher amount this week, if it's by % then maybe I'll try unionbank instead.