One interesting way of saving money on conversion fees when withdrawing money from your PayPal account, is to link up a virtual card or virtual bank account.
Let’s say your PayPal account is in Euro, but you also have several other currencies such as GBP and USD. With Revolut and Transferwise you can open accounts in these currencies too. Therefore when you want to withdraw GBP from PayPal, you would withdraw to your Revolut/Transferwise GBP account, thus no conversion would take place.
This has already been tried and tested by several users, and I managed to link up my Revolut card without any problem myself.
However, this is not to say that PayPal approve of the practice 100%. Here’s what they said when I asked them about it:
If the system allows you to add this bank, you can use it, but also PayPal does not take responsibility in case of missing funds during withdrawals, as we cannot communicate with virtual banks in order to locate missing transactions etc.
We usually do not advise merchants to add Virtual Banks/ Cards, but technically you can if you wish.
I also asked them if they would be able to help in adding the virtual bank accounts, since not every version of the PayPal interface (depending on your country) will let you add these accounts. Here’s what they told me:
we cannot manually add any virtual bank accounts/ cards to the PayPal accounts. This is due to the risks that are associated with them, therefore if you are able to add it yourself you can, but we cannot add them on your behalf as this function is not available to us.
So the bottom line seems to be that if you’re using PayPal for personal use and are ready to take a minimal risk, you’re allowed to withdraw money from (or send money to) your PayPal account from a virtual bank account like the ones provided by Revolut an Transferwise.
As always, I welcome the sharing of experiences on this matter, just leave a comment below.