Paypal Utilizes Credit Card Machinery for Malaysians to Withdraw Funds
Paypal now allows or so it seems, for Malaysians to withdraw their funds via credit-card management system. Namely the Visa and MasterCard machinery.
This system is often put into place when negotiations with the banking or financial body in certain country failed to make any progress. It is a last ditch effort made to enable users to transfer funds without being subjected to the rules and regulations set by the regulatory body. In Malaysia, that body is called Bank Negara.
If you log on to your paypal account, click on “Withdraw”, you will now see two options. The “Transfer funds to your card” is a newly added feature. It costs 5.00USD per transaction with a limit of 500.00USD.
Initial attempts to withdraw funds this way have not been successful. I am using credit cards issued by the local banks. I made a quick call to their customer service asking for clarifications. Their credit card officer revealed that all local banks have barred this kind of fund movement also used by online sports betting bookies.
This may not be good news. Funds transferred to online sports betting bookies accounts are subjected to the usual “Cash Advance” charges. Current rates are three percent of the total amount and two percent per month until the whole amount is fully paid up.
Looking at the rate things are going, it will not be long before the Banks charges interest for using credit cards to deposit funds INTO paypal. That will be bad.
The current credit card terms and conditions are drawn up and approved by the Bank Negara of Malaysia. Although debit cards use the same Visa and MasterCard machinery, some rules are relaxed to promote the electronic purse culture some time back.
For now, I would suggest using debit cards for Paypal.
Good Luck!
Miserable and Irritatable
January 31st, 2008 at 4:12 pm
Hey there. Came across your blog about paypal. Funds withdrawal to debit card has a limit
Mine is $500 and this is ridiculous if i wanted to transfer more, like 3k for example. So i’ll be charged for 6 times = $30. STupid!
How do you lift the limit ? paypal told me can’t do it coz of country and bank rules and regulation. I called bank negara yet they said there is no limit to bring in money. Anyhow, that lady from bank negara customer service centre does not even hear of Paypal and asked me to verify if Paypal is reliable. Now i do not know whose policy to have such withdrawal limitation. Our country or Paypal themselves who’s playing the who thing.
Kinda fed up….