How to Transfer Paypal Funds Using Instant Paypal Remittance

Florante Valdez — Sun, 08 Jan 2012 02:51:08 +0000

**THIS SERVICE IS SUSPENDED WHILE A BUSINESS SUMMARY IS STILL BEING PREPARED FOR PAYPAL APPROVAL**

Last year’s introduction of this site’s Instant Paypal Remittance was well received. I didn’t really realize that there are so many freelancers and online shoppers who are in need of their Paypal credits but are left with little to no option of withdrawing their earnings or credits without having to go through the hassle of coursing the money first to the bank.

This actually inspired me to create a more structured system with the instant Paypal transfer. Here are few things:

1. The fees, I understand fees are one of the many considerations for the service. And I have really made it as affordable as possible. Currently, the Service fee structure is:

Service Fee Bracket	Fee
$25-75	$5
$76-100	$6
$101-125	$7
$126-150	$8
$151-175	$9
$176-200	$10
$201-300	$11
$301-500	$12
$501-700	$15
$701-1000	$18

2. Remittance Agency Options – There are a number of options you can see on the Paypal Remittance Form currently, we have LBC, MLhuillier, Cebuana Lhuillier, Western Union, as well as banks that include, Unionbank, BDO, and BPI. Based on the previous transfers that I have made with clients, the top three on my list include:

BPI & Unionbank – The good thing with these two banks is the fact that they don’t charge you for any fee for inter-branch deposits.

BDO – Interbranch deposit fee is at Php 125.00 (if i remember it correctly)

LBC, MLhuillier & Cebuana – remittance fee is dependent on the amount of money to transfer.

Western Union – Unfortunately, I do not recommend this option as the fees are very expensive. Take for example a Php5000 remittance. This would only cost 220-240 using ML or Cebuana, but Western Union eats up Php410.

3. Turnaround Time – I strive to make the transfer as quick as possible. They can range from an hour or 2 for Cebuana or MLhuillier or a quick 30 minute with BPI since it’s just a stone’s throw away. There are also other factors to consider as I also work, so there may be times when it will take a little longer (around 3-4 hours) before I can make the transfer.

Now for the example:

(ER) – Paypal Exchange rate at the time of transfer:

(PA) – Principal Amount to send

(RF) - Remittance Fee from Mlhuiller/LBC/Cebuana/Western Union

(SF) – Service fee (between $5-$12)

(NV) – Net amount to be received

Assuming the following figures:

Current Paypal Exchange rate: $1 = Php42.5

Principal amount = $100

Remittance Agency: Cebuana Lhuiller

(PA – SF) x ER – RF = NV

[($100 - $6) x 42.5] - RF = NV

3995 – 220 = 3775 net amount to be received by the recipient.

On the other hand, if you have a Unionbank or BPI bank account the net value would be higher since it eliminates the (RF) or remittance fee. In the above example that is Php 220. This means that your net value would be computed as follows:

(PA – SF) x ER = NV

($100 – $6) x 42.5 = NV

94 x 42.5 = NV

NV = 3995 net amount to be received by the recipient.

Got questions or suggestions? Drop them on the comments box and I’d be happy to answer them for you.

Exchange Rate Trends

Florante Valdez — Mon, 12 Jul 2010 09:50:43 +0000

Have you planned on buying a brand new laptop but passed it on for next month’s goal because you didn’t get the expected amount? Let me guess, you were getting some good income lately like a regular job, but the exchange rates have been as erratic as woman’s fickle mind. Well don’t pull your hair off. I know that’s frustrating specially if you’re expecting it and have almost ironed out your budget. But chances are, a good exchange rate today, may not be as good tomorrow. That’s how the forex and stock market is. It’s almost impossible to see a straight line on their charts. So don’t expect to always get a good rate. And for Filipinos and other nationalities who still needs to convert from one currency to another, that’s an additional area to consider. Are you charging a low rate because the current exchange in the market is high? Are you considering some cushions if a sudden drop in the exchange would happen? Those are actually the two main issues you’ll need to ask yourself before you throw in your bid or submit your proposal.

Aside from the normal exchange rate fluctuations, you should also remember that withdrawing your funds from Paypal to your local banks will give you a much lower rate. As an example, I’ve graphed my withdrawals for the month of June from Paypal to my EON card. I then compared the rate at www.exchange-rates.org. From the 10 withdrawals that I’ve made, there was an average difference of Php1.1914 between the EON exchange rate and exchange-rates.org (see table 1) It’s not a huge loss in the short term, but if this amount accumulates over a period of time, you’ll definitely feel that little things do matter.

Table 1: Comparison of Exchange rates between Paypal to EON vs. Market rate at exchange-rates.org

In span of 10 withdrawals that I have made for the period of June (see table 2), the highest level reached was at Php45.48 to a dollar, while it took a dip on the 23rd at Php44.58 to a dollar exchange rate.

Table 2: June Average Exchange Rate (From Paypal to EON)

Although the month June showed a dip during the last week of the month, it still posted the highest exchange rates during the 1st half of 2010. The dry month of April also proved to be the lowest point for the dollar earning Filipinos. On the other hand, January and February exchange rates are the months where the exchange rates have been most stable.

Table 3: First Half of 2010 Average Exchange Rates

Certified Freelance » Paypal

How to Transfer Paypal Funds Using Instant Paypal Remittance

Exchange Rate Trends