PayPal Withdrawal Fee for Merchant Accounts

Panna Kemenes

PayPal fees can be complicated. This guide will help clear up the costs of withdrawing funds from PayPal to your card or bank account.

You can also find out about Wise Business. Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The business account from Wise can save you money on international transfers.

Find out more about Wise Business

What is the PayPal withdrawal fee for Merchant accounts?

Standard PayPal withdrawals: There is no PayPal withdrawal fee for merchant accounts with an eligible linked bank account or debit card when no currency conversion is involved.

Instant PayPal withdrawals: Instant USD withdrawals cost 1.5% of the amount being transferred.¹ The mimimum fee for instant withdrawals is 0.50 USD.

If the collected funds in your PayPal account is in a different currency, the fee to convert it to USD is 3.00%, or such other amount as may be disclosed to you during the transaction. To avoid this fee, you can use Wise to withdraw and convert the funds to your local currency.

Standard vs. Instant transfer

Standard transfers to linked bank accounts get delivered in 1- 2 business days. Instant Transfer offers a faster delivery to eligible bank accounts or debit cards which are usually completed in minutes. Visa and MasterCard debit that supports instant transfers are eligible. You can get in touch with your card issuer to check if your card supports instant debit.

Eligible banks include those participating in The Clearing House Real Time Payments program. Most US banks use this payment system to expedite local transfers but it's best to check with your bank first it to avoid bounce backs or payment rejection which could lengthen the process of withdrawing your funds.

It's also important to keep in mind the following withdrawal limits:

Instant Transfer Withdrawal Limits for Business Accounts:

  • $50,000 per transaction
  • $100,000 per day
  • $250,000 per week
  • $500,000 per month

Instant Transfer Withdrawal Limits for Bank:

  • Up to $25,000 per transaction

Linking your PayPal account with Wise

It’s important to remember that the account details you’ll need and the process of adding it to PayPal vary according to currency. For example, if you’re withdrawing EUR, you’ll need an IBAN number and BIC and for GBP, you’ll need the account number and sort code. Wise will generate these details for you once you’ve set up the account.

Here’s how you can connect your Wise account with PayPal

  1. Set up an account with Wise - select ‘business’ if you’ll use the account for business purposes. After its set up, you’ll also need to set up a personal account under the same log in.
  2. Once the account is set up, go to ‘balances’ and click on ‘get started’. You’ll have to choose which currency to activate first. If you wish to add more currencies, click on ‘Open a balance’ from the ‘balances’ page.
  3. Once the accounts have been activated, you’ll see your account details under each currency.
  4. Copy your account details from your Wise account (make sure that you select the correct currency).
  5. Log in to your PayPal account and select ‘Wallet’ from the menu then Click ‘Link a Card or Bank Account’- select the option to add a bank account.
  • NB! PayPal will send two small deposits to your Wise account for verification. These usually arrive in 1-2 business days. Once you’ve received the deposits, log into PayPal again and enter them into a special verification box. Once they’re verified, you’re ready to go!

Other benefits of the Wise Business account

Using the Wise Business account, you can collect payments from your local and international customers in USD, EUR, GBP, NZD, AUD and more for free. You can also download a free invoice template and add your company profile including your local account details with Wise to easily collect payments.

You can integrate the account with accounting software Xero and QuickBooks to help ease your tax reconciliation and take advantage of all other features the tool offers including automated invoicing, billing and multi-currency accounting.

For multiple payments to your vendors and contractors overseas, you can use the Wise batch payment tool to make up to 1000 payments in one go saving you time and money! You can also automate invoice payments using the Wise API.


  1. PayPal -Merchant fees

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.

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