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$2.50? What I'm worried is that if it's a percentage deduction, it might be cheaper to just withdraw to a debit or credit card rather than to a local bank account.
So, exactly how does BPI compute the deduction? Could anyone enlighten me about the formula?
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Thanks for taking the time to
Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with more information? It is extremely helpful and beneficial to your readers.
Flat fee structure would kill
Flat fee structure would kill profit margins on micro charges, but would be good for large ticket purchases. I would talk with a few banks to see who would have costs most favorable to your business model.
paypal to bpi
I received almost the same deduction when I tested it and withdrew 10$ .. let me try a higher amount this week, if it's by % then maybe I'll try unionbank instead.
re: paypal to bpi
Me thinks it would be better to just call BPI and just ask what the fee for an electronic fund transfer is. :)
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