Business

How to accept international payments on PayPal

Panna Kemenes

03.05.23 (updated more than 1 year ago)

Read time 3 minutes

In 2022, the number of global PayPal users reached more than 200 million.¹ By 2025, PayPal is predicted to have 249.9 million active users.

To tap into this global customer base, the first step is being able to accept international payments. You can do this by changing your settings.

Let’s take a look at how to accept international payments on PayPal.

📝 In this article:
Accept international payments on PayPal: Step-by-step How to set foreign payments to convert automatically How to set foreign payments to convert manually How to hold payments in foreign currencies Pros and cons of accepting international payments Accept international payments with Wise

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How to accept international payments on PayPal: Step-by-step

To accept international payments on PayPal, you need to:²

Log in to your PayPal Business account
Select “Profile”
Select “Profile Settings”
Select “My Selling Tools”
Make sure “Block Payments” is left unticked

From here, you’ll be able to receive payments from abroad.

Now you need to decide whether you want to convert foreign payments manually or automatically, or to hold them.

How to set foreign payments to convert automatically

To have foreign payments converted automatically, you need to:³

Go to “Settings”
Select “Account Settings”
Select “Payment Preferences”
Under the “Allow payments sent to me in a currency I do not hold” tab, select “Yes, accept and convert them to US Dollars”

With this payment preference selected, foreign payments will be converted automatically to USD. PayPal uses the latest exchange rate and credits the payment to your PayPal business account.²

How to set foreign payments to convert manually

To have foreign payments converted manually, you need to:³

Go to “Settings”
Select “Account Settings”
Select “Payment Preferences”
Under the “Allow payments sent to me in a currency I do not hold” tab, select “Ask me whether to accept or deny each individual payment”

With this setting selected, PayPal will notify you every time you receive a foreign payment.

To convert a payment manually, you need to:²

Select “Activity” from the main menu
Look in the transaction list for the pending payment and select “Accept”
Select “Accept this payment”
Select “convert it to USD”
Select “Submit”

Like this, you’ll be able to convert payments when it makes the most financial sense.

How to hold payments in foreign currencies in PayPal

If you don’t want to convert a payment immediately, you can open and hold a foreign currency balance in your PayPal account.

To do this, you need to:²

Select “Money” in the main menu
Select “Manage Currencies”
Choose the currency you wish to hold and select "Add Currency”

This allows you to convert currencies at a later date, taking advantage of competitive exchange rates.

PayPal currently allows you to open foreign currency balances in:
Australian dollar Canadian dollar Czech koruna Danish krone Euro Hong Kong dollar Hungarian forint Israeli new shekel Japanese yen Mexican peso New Taiwan dollar New Zealand dollar Norwegian krone Philippine peso Polish złoty Pound sterling Russian ruble Singapore dollar Swedish krona Swiss franc Thai Baht⁴

Pros and cons of accepting international PayPal payments

Here’s an overview of the pros and cons of accepting international PayPal payments.

Pros	Cons
Tap into a global customer base by being able to accept foreign currencies Hold a range of currency balances Convert your funds when it makes the most financial sense Automate currency conversions to save you time	PayPal charges their standard domestic transaction fee (2.99-3.49% + fixed currency-based fee) plus a percentage-based transaction fee (1.5%) for receiving international payments.⁵

Accept international payments with ease - try Wise Business

Accepting international payments with PayPal can be expensive. This is where Wise Business comes in.

Wise a smart online alternative to traditional banks. With a Wise Business account, you simply open your account online, verify your business, and get access to local account details for 10 major currencies.

To open a balance, you’ll only need to:

Go to Home on the website or app.
Choose which currencies you’d like to hold money in by clicking Open a balance.

This allows you to receive like a local to these currencies, free of PayPal cross border fees. You can also hold more than 50+ currencies in your Wise Business account.

If you want to convert your balance to USD, then you’ll have access to the real, mid-market exchange rate. This is free of hidden fees and high markups.

Cut fees and complexity when accepting foreign payments with Wise Business.

🔍 Read more articles on PayPal:
What's the PayPal business transfer limit? How to delete a PayPal business account How to transfer money from PayPal to your bank

Sources:

All sources checked May 2, 2023.

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This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.