Withdrawing money from PayPal to your Visa credit card in Mauritius
June 6, 2015
Recently PayPal has approved the function of receiving money in Mauritius. To be precise since the 13.04.15 PayPal accounts in Mauritius can now receive payments and withdraw funds. This was previously not available for Mauritius. The only function you could use was to make payments via your credit card through PayPal.
In this article I will share with you the details of my communication with PayPal and a local bank and this will make it clearer how you can withdraw the money that someone sends you on PayPal (for example in using your email address) or what options you can choose and what you require to make it work. I will however not go into details how to request someone to send you money as this is quite straightforward in the user area of PayPal once you are logged in.
I’m especially writing this article because if you have a certain habit of how things work with your bank, credit card and PayPal your logic of seeing the steps might be used to a different thought structure, well am speaking of my case here. I just couldn’t get it or it just seemed vague or unclear what is actually meant by withdrawing your money on Paypal. When you do it, what happens!?
Some of my novice questions were also posted in the Mauritius Facebook Blogger group, and while some of my content will appear to be shear simple logic of how it should work and one might wonder – gee doesn’t Dietmar get it… There is no stupid question 🙂
Here you go:
You need a Visa card. It will currently not work with a Master card. And my local bank said a visa debit card cannot be used. (If a visa debit card did work for you, please share infos in the comments section).
When someone sends you money on PayPal, where does it go to?
Once you received payments, it will be posted to your PayPal balance. You have an option to use your PayPal balance for sending payments online or you can also transfer it to a US Bank account (not a US$ Bank account in Mauritius) or to a Visa card that is eligible for withdrawals.
When I receive money on PayPal, does it go directly on my credit cards account (not current account associated with it)?
When someone would send money to you, money will be available first in your PayPal account and not your Visa card. From there you can have the money withdrawn to the bank you prefer (only a bank account in USA) or the visa card. It comes with additional fees, mentioned below.
You will be able to withdraw funds to the Visa card and retrieve the money through an ATM or to your bank depending on the features provided by your bank.
Can I withdraw directly from PayPal to my local bank account in Mauritius?
You cannot add a Mauritius bank account, since local bank accounts are not applicable in your PayPal account. You can only use a Visa card or a US bank account registered with a US address.
Withdrawing to a US bank account would not incur any withdrawal fees it is only when you use your Visa card that you will be charged for a withdrawal fee thus is determined by the card issuer.
If you withdraw money to your visa card, how much fees will it cost?
When it comes to withdrawal fee process associated to Visa Card is $5.00 USD. This fee is applied for every withdrawal with Visa since PayPal is also using their service or feature in withdrawal to card. (Please note that you will also incur charges when you receive money, I will show you an example at the bottom)
When I withdraw money from PayPal to my Visa credit card, will the money be directly credited to my current account?
It will be on your visa card account, your credit card is an account of its own as well.
Once I have withdrawn money from Paypal to my Visa credit card, how can I retrieve it and what charges will I incur? Can I also transfer it to my current account? (Feedback from MCB)
All withdrawal from a credit card to another account will be considered as cash withdrawal, this can be done on any ATM or depending on the sum, inside the bank. Then the 2% charge will be applied.
You can pay through merchants (retailers) without any charge, as they will pay for the charge.
If someone sends me $110 how much will I effectively have left less PayPal charges and withdrawal charges?
You need to keep in mind that receiving money on PayPal is not for free. They have their charges. The moment someone sends you money, you pay a charge. Then when you withdraw the money on your visa credit card you have another charge. And of course when you withdraw the money from your credit card at an ATM or transfer it to your bank account, you have again some charges (but not to PayPal).
To begin with, any payment (goods or services) received, there is a receiving fee of 3.40% + $0.30 USD (local) and 3.90% + $0.30 USD (international) regardless of the amount you received.
In your example, if you receive $110.00 USD, a fee of $4.04 USD (local) will be assessed and will be deducted from the amount you received. For international, a fee of $4.59 USD will be assessed.
If in case that your withdrawal did not go through (usually if the card issuer refused the funds), a return fee of $10.00 USD will be assessed.
So in Mauritius it will be:
The moment someone sends you $110
$110 less (3.90% = $4.29 + 0.30 = $4.59) = $105.41
Then when you withdraw to your credit card:
$105.41 less $5 = $100.41 goes to your credit card
And then if you retrieve it at an ATM or transfer it your local bank account
100.41 less (2% = 2.01) = $98.40 is what you will have left of the $110 payment you received initially.
We can sum up that this is the amount you pay in total as charges:
PayPal fees $4.59 + PayPal Withdrawal fee $5 + And if you want to retrieve the money from your credit card at an ATM or local bank account $2.01 = $11.60
Other reading material:
Please also read the forum posts in Clever Dodo: Paypal Mauritius can now receive money 🙂