I hope that I have cleared most of the doubts about what is PayPal, how to sign up, types of accounts and transaction charges in my previous articles. Here I am going to explain about how to withdraw money from PayPal account to your bank account in India.

1. For withdrawing money from your PayPal account, first of all, you have to login into your account.
2. After login, you can see an option ‘withdraw’ on the dashboard or the main page after login.
3. Once you click on the ‘withdraw’ link, you will be directed to the page where there are several options for withdrawing money.
4. You can withdraw funds in three ways:
   • Withdraw direct to your bank account – If you select this option, you have to provide your bank account details.
   • Request a check from PayPal – Here, PayPal will process your request and send you a check at your registered address.
   • Withdraw funds to your credit card – Here, you can withdraw money and add it to your credit card, debit card or prepaid card with VISA logo. However, debit cards or ATM cards with Master logo are acceptable. Before you withdraw funds to your cards, you need to add and link your card to your PayPal account, which might take 2-3 days processing time.
5. Minimum withdrawal amount is $10
6. You can withdraw up to $500 per month if you have not linked your credit card or debit card to your PayPal account. Once you link your credit card or debit card, you are termed as ‘verified’ buyer and allowed to withdraw large funds.
7. For withdrawing money directly into your bank account, you have to pay a flat fee Rs. 50 for amount Rs.0 to Rs.6,999.99 for each transaction. However, there is no fee for amount Rs.7,000 and above.
8. For requesting a check payment in USD or for requesting money on your credit card, a fee of $5 is levied per transaction.
9. Check payment requests are processed in 5-7 business days, which exclude delivery time.

Conclusion:

Direct credit to your bank account is the fastest and best method for withdrawing money from your PayPal account. Although, the time frame given by PayPal is usually 5-7 business days but if you are located in large cities, you can expect the credit in maximum three business days.

Step-by-step Adding Bank Account: My Account >> Profile >> Add/Edit Bank Account >> Add >> Country, Bank Name, IFSC, Account number, Re-enter account number >> Continue

Note: PayPal uses the National Electronic Funds Transfer (NEFT) system. Please provide the IFSC code of a participating branch location. If you provide an IFSC code (Indian Financial System Code) from a bank branch that is not part of the NEFT network, your withdrawal will not be completed and a return fee will be charged.

Checkout if your bank is NEFT enabled bank along with IFSC code >>
List of NEFT enabled bank branches!

For most of the successful freelancers, PayPal is the most important tool for their business activities. In some of the earlier articles, I have explained about the role of PayPal and other features. Here, I am describing about various types of accounts and the charges for using the services of PayPal.

Personal Account

• You can send money free to any person with an email address.
• You can also receive money from any other persons, subject to a limit of five transactions per year. On every receipt, certain charges are applicable, which are deducted from the payment received by you.
• Ideally suitable for the beginners to get a feel of what is PayPal

Premium Account

• In the premium account, you can do unlimited numbers of transactions.
• Of course, you will have to pay charges depending upon the type and the amount of transactions.
• Transaction charges for premium accounts are slightly lower than personal accounts.
• You might upgrade to premium account once you have established in your freelancing activities and you are confident that number of transactions would be more than five per year.

Business Account

For most of the upcoming freelancers with small to medium number and amount of transactions, it does not make any sense to go for business accounts.

Charges

• Regardless of the type of account, there are no charges for sending payment.
• Charges for receiving cross-border payments range from 2.9 % to 3.9% depending upon the monthly sales.
• Charges for receiving domestic payment (for Indians) range from 2.4 % to 3.4% depending upon the monthly sales.
• Besides, there is a flat fee of 0.3 USD for every transaction.
• For most of the Indian freelancers (sales up to 3000 USD per month), charges for receiving cross-border payments are 3.9% + 0.3 USD and for domestic payments, the charges are 3.4% + 0.3 USD
• There are no charges for transferring funds from your bank account to your PayPal account.
• Charges for withdrawing money to your bank accounts are described separately in another article, along with the complete procedure for withdrawal.