How to operate PayPal in Euros?

[rjmusto]

Hi,

I have a UK tourist business that operates predominantly on the Continent and have a question on how to best use PayPal:

How can I collect payments in Euros with PayPal and be able to withdraw funds to a European (actually a UK bank in this case) bank account, also in Euros?
(I need to keep everything in Euros as most of our costs are in Euros and don't want to keep switching currencies.)

I have tried operating a PayPal account based on the continent, and ok in works in Euros, but will only link to a US bank. So that's no use.

I have tried operating a UK based PayPal account, but that will only link to a Sterling account. So that's no use either.

Or is there a better system than PayPal?

Thanks.

 

[carriemc]

As far as I am aware you can have a euro account in some uk banks.

You could also have a look at moneybookers.

Caroline

 

[andygambles]

For UK PayPal accounts you can only add UK based sterling accounts and US based dollar accounts.

Even if you added a UK based Euro account PayPal converts the withdrawal request to sterling.

You would need to open a PayPal account registered to a European company, say in Germany, and then link a German Euro bank account to this.

The costs to do this can be high but it can be significant savings on exchange fees if you are converting lots of money.

 

[rjmusto]

Thanks for the responses.

Caroline - I quite like the look of Moneybookers. Any idea how customers react to a payment request via Moneybookers? Is it a hassle free process?

Andy - Hmm, yes exactly. Seems a very restricted way of operating to me. For my European PayPal account, I can withdraw Euros to a UK based Euro credit card, but not to any Euro bank accounts. (The account is based in Slovenia and PayPal does not offer any European bank accounts at all.) Daft.

 

[andygambles]

Andy - Hmm, yes exactly. Seems a very restricted way of operating to me. For my European PayPal account, I can withdraw Euros to a UK based Euro credit card, but not to any Euro bank accounts. (The account is based in Slovenia and PayPal does not offer any European bank accounts at all.) Daft.

At all! I didn't know that.

 

[carriemc]

I've used Moneybookers for years, however mainly to pay for things or do international transfers, never had any real problems with their service They are not good about answering emails but they do answer phone calls luckily, and sort out problems very quickly if you contact them that way.

Its a bit of a pain setting up the account and there are limits on how much you can send abroad within a specified period - money laudering regs and all that (that might not be a problem for you). Not sure if there are limits on how much you can receive - never had that much sent to me with their service for it to matter. I've had a handful of international customers pay me this way with no problems.

Your best bet is probably to phone them and explain what you want to do and ask if its possible. I would also ask them about any enforced limits on your account.

Caroline

 

[Raw Rob]

About 5 years ago I used to live in Spain, I had a Spanish PayPal account in Euros linked to a Spanish bank account also in Euros, everything worked fine.

Rob

 

[alwaysinamess]

About 5 years ago I used to live in Spain, I had a Spanish PayPal account in Euros linked to a Spanish bank account also in Euros, everything worked fine.

Rob

Hello

The problem is your limited to 2500 Euros a year, I opened a Euro account in our UK Ltd name but now we have reached the limit and its a hassle to explain it to them that we dont want to pay there exchange rates for items we sell in Euros

 

[Food From Cyprus]

(I need to keep everything in Euros as most of our costs are in Euros and don't want to keep switching currencies.)

In which case why don't you simply use PayPal as a bank itself and make your payments to your suppliers via PayPal rather than withdraw funds to a bank and then pay from there?
This is what we do. We keep PayPal balances in US$, €, £, SFr, Rubble, etc. and make any necessary payments in the currency of the country we are buying from and only withdraw the profits to a bank.

 

[JPMiddleton]

In which case why don't you simply use PayPal as a bank itself and make your payments to your suppliers via PayPal rather than withdraw funds to a bank and then pay from there?
This is what we do. We keep PayPal balances in US$, €, £, SFr, Rubble, etc. and make any necessary payments in the currency of the country we are buying from and only withdraw the profits to a bank.

This is exactly what we do, and it makes a few percent difference overall to margins. However, if your cashflow is not amazing and you don't have many US or EU suppliers I wouldn't recommend tying your cash up like that. It works for us as 90% of our suppliers are EU or US.

 

[Pish_Pash]

Re 'what to do with Paypal Euros' .......It also is normally a little bit more preferential to convert your Paypal Euros into another Paypal currency. For example if I have a lot of euros in my Paypal account, it's better to convert the Paypal Euro to Paypal Yen & then use 'send payment to a friend' for paying your suppliers in Japan etc. (obviously you need to have a good working relationship with your supplier), rather than convert Paypal euros to sterling (then convert to yen via an alternative method)

 

[binsley]

Hi, My customers are still mostly in the UK and paying sterling, but now we're based in Portugal I'm getting some payments in Euros. PayPal automatically opened a Euro balance for me, but similarly to the OP, I was struggling to withdraw it to my Portuguese bank, since PayPal UK only allow you to link to a UK bank. They'd let you convert the Euros into sterling (for a fat fee) then I could withdraw to my UK (sterling) bank for free, then I could use my usual currency-exchange company to convert it back into Euros and transfer to my Portuguese bank (for another fee, admittedly less fat). Anyway! the solution was, in the end, straightforward (thanks due to Raw Rob!). I opened up a Portuguese personal PayPal account in my wife's name (couldn't do it in mine unless I created yet another email address, since you can't associate the same email address with different PayPal accounts). Then it was easy to link her PayPal account to our joint Portuguese bank account. So now I can "Send Money" from my Business PayPal Euro balance to my wife's PayPal account, and she can withdraw them into our Euro bank account - simples! and all free.

 

[alwaysinamess]

That is ok, but they will restrict it at 2.5k, then you will have to prove your not a business or change to a business in Portugal, however, if you have a UK Ltd company then you can open a Euro account in that and send the money to any Iban number.

Then if your wife can not prove, they could limit her account and the yours after as they will be linked. I been there and done it and have the Tshirt, these are worst case scenarios but.......all possible.

 

[binsley]

Thank you for the warnings! 2.5k is a way off yet though, it's just a few customers. If it gets close, we would have to change the Portuguese account to a business one; we have an address here and pay Portuguese taxes, so it should all be kosher...

 

[Pish_Pash]

If I'm reading Paypal new terms & conditions correctly, then from Nov 19th, you will only be able to repatriate any Paypal money held ....to your home currency (a nice little earner by Paypal forcing everyone to use their poor exchange rates)...

https://www.paypal.com/uk/webapps/mpp/ua/useragreement-full#2

"6.1 How to Withdraw/Redeem E-money. You may withdraw funds by electronically transferring them to your bank account (this withdrawal/redemption functionality is sometimes known as “transfer to bank”) or if you are a registered user of a Credit Card Withdrawal Region, your branded MasterCard or Visa card. Some jurisdictions may permit you to withdraw funds to either your bank account or your card. The bank account into which you request the redemption of E-money must be denominated in the home currency of your Account. Balances must be redeemed in your home currency – see section 6.4 if your Account holds a balance in multiple currencies."

 

[andygambles]

As per 6.4 of the agreement

6.4 Withdrawing Money in Multiple Currencies. If you have multiple currencies in your Balance, you will be able to choose from those when you withdraw funds, but, unless otherwise agreed, the withdrawal will take place in your home currency.​

It is possible to discuss withdrawing other currencies from PayPal. A separate addendum agreement is created which permits this. You need to be doing significant volume in the stated currency.

 

[antropy]

For UK PayPal accounts you can only add UK based sterling accounts and US based dollar accounts.

What's this then?

 

[andygambles]

What's this then?

My comment referred to accounts you can add to withdraw money. You can add many different currencies to accept PayPal payments in. However since my post this has now been expanded and you can add Euro accounts. But again this is under special agreement and not generally available within the PayPal interface.

 

[antropy]

Ah that makes sense.