Aug 08

Paypal is a convenient tool for transfering money to anyone with an email. You can also use Paypal to make online purchase and receive payment for your online business. I have been using Paypal for more than 4 years to accept online credit card order for health supplements.

Recently, my Paypal withdrawal limit is increased from a daily limit of USD 500 to USD 2500. Here’s how I found out.

Before this, Paypal user in Malaysia can only withdraw money to US bank account. Of course, this was too troublesome for most user. At that time, I would transfer my Paypal balance to my Singaporean friend. He would then transfer to his Singapore bank account and pass it to me in cash. I would have to convert the Singapore dollar to Malaysian Ringgit again.

This involved two fees. Firstly, Paypal would convert US dollar into Singapore dollar at 2.2% lower than market rate. Secondly, I had to bear currency exchange cost to convert Singapore dollar to Malaysian Ringgit.

Later, Paypal user in Malaysia are allowed to withdraw to credit or debit card bearing VISA logo. This is of course a great news to us. So I immediately applied for a Maybank debit card. Unfortunately, I couldn’t withdraw Paypal balance to Maybank debit card when I tried. Later I found out Maybank debit card currently doesn’t accept online transaction.

Therefore, I withdraw to my Maybank Visa credit card instead. Unfortunately (again!), the withdrawal limit was only USD 500 per day with a service fee of USD 5 per transaction. At USD 500 withdrawal, the service fee will be 1%. This is also quite high, but much lower than withdrawal to Singapore bank.

I have withdrawn Paypal balance this way for several times without any problem. I took about 3 to 5 days for the amount to clear. I can easily check it online using Maybank2u.com service. As the USD-RM rate goes up and down, I will get different amount for each withdrawal. Sometimes, I would wait for the exchange rate to go up in my favor before making the withdrawal. But when the rate goes down, I would withdraw it quickly.

Paypal withdrawal to Malaysia credit card

Paypal statement showing withdrawal to Malaysia credit card

 

Maybank statement showing Paypal withdrawal

Maybank statement showing Paypal withdrawal

(Note: The amount above is not pure profit.  A big chunk pays for the cost of goods.)

I was used to this USD 500 limit I would key in USD 500 everytime I make the Paypal withdrawal. Entering anything more than UDS 500 would result in error. But on one particular day, I tried to enter about USD 700 out of curiousity. To my surprise, I was allowed to proceed to the next step.

Hmmm… has Paypal lift the USD 500 limit?

So I cancelled that transaction and waited for my Paypal balance to reach USD 1000. Then I tried to withdraw about USD 1000+. I could proceed to the next step too. This is great! I can finally withdraw more than USD 500 at one time. This greatly reduce the withdrawal service charge. At USD 1000 withdrawal, the USD 5 fee is only 0.5% of the total amount. At USD 1500 withdrawal, the fee is only 0.33%.

Finally, I ended up withdrawing USD 1800 as shown below.

New Paypal withdrawal limit

New Paypal withdrawal limit for Malaysia

(Note: The ‘Name on Card’ shows my company name instead of my name. I was worried of this but there is no problem.) 

The transaction was successful. And it reminded me of the elephant story as follows.

“At a circus, trainer would tie baby elephant’s leg with a big metal chain. As a wild animal, baby elephant would kick and drag her leg with all its energy to get free. But each trying only wounded her leg badly. And with each try, the baby elephant used less and less energy. Finally she gave up trying. After the elephant grew up, the trainer only tied her leg with a small rope. The adult elephant could now easily break free with a gentle kick. However, she gave up long time ago because she had failed many times before. So what restict the elephant’s freedom? The tiny rope tied to her leg or the big metal chain in her mind?”

For my case, I was so used to withdrawing USD 500 that I didn’t realize the limit was increased until I tried entering a bigger amount. However, I received an email from Paypal several days later mentioning about my increased withdrawal limit. Here’s the extract of that email:

Dear Pang Chow Ping,
As a valued seller, we are contacting you about a recent improvement
that we made to your PayPal account.  Your withdrawal limit to your
Visa® debit/credit card has been increased from US$500 to US$2,500 (or
equivalent) - giving you faster access to your funds1.
We hope that you’ll enjoy this enhancement!  Thank you for continued
business!

Sincerely,
The PayPal Team
1.      The new limit is per withdrawal to your Visa® debit/credit card.
Additionally, your account was selected for this enhancement based on
your recent transaction and account history with PayPal and is subject
to periodic review.

At first, I thought every Paypal user in Malaysia get this withdrawal limit increase. But with this email from Paypal, I realized only certain seller are entitled for this withdrawl limit increase. Maybe my transaction amount meets their minimum requirement. However, the foot note says it is subjected to periodic review. Anyway, I certainly welcomed this improvement as I can reduce my transaction cost :)

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One Response to “Paypal withdrawal limit increase for Malaysia”

  1. Calvyn Says:

    I just call up paypal and ask them to increase my limit, unfortunately they told me dono what local bank policy, the max is $500 only

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