Note that in April 2020 things seem to have changed on PayPal’s end and they now allow adding a USD bank account based in Malta as well as permit a higher limit on debit card transfers, although I’m not sure what the new limit is.
In a recent development PayPal has implemented bank account withdrawals to people holding a PayPal account based in Malta. Prior to this development, the only possibilities for withdrawing money were the following:
- Withdrawing to a credit card
- Withdrawing to a US bank account
The big problem with withdrawing to a credit card is that it is limited to $2,500 at a time so it is very inconvenient for high volume sellers. Moreover there is a charge per withdrawal, so the fees quickly escalate.
PayPal’s automatic currency conversions (at disadvantageous rates) when withdrawing are another big issue. You’ll find many sites dedicated to PayPal-bashing because of this.
Since in Malta you cannot get a credit card for an account denominated in US dollars, sellers are stuck with automatic currency conversions (either on the PayPal side, or their own bank) from USD to EUR when withdrawing money to their credit card. Of course, I’m assuming that sales are being done in USD. Since the dollar is the de facto web currency, this is the case for most online shops.
With this new development I was hoping to open a USD bank account in Malta and withdraw USD from PayPal into this bank account, thus avoiding currency conversion altogether.
In my ideal scenario I would have then been able convert the money at will and possibly even bypass the bank’s charges by using Wise. Alas, this was not to be. After further questioning, the PayPal support agent informed me that the automatic currency conversion would still happen and they do not allow non-Euro denominated bank accounts from Malta to be linked to a Maltese user’s profile:
Do bear in mind that we would only offer the option to use an EUR denominated bank account at this time. Which means that even if you add and use an USD based account, that it would automatically have funds converted to EUR upon withdraw.
For that specific matter, I cannot really recommend the use of an USD account, as you are not able to directly withdraw into it without otherwise having a double conversion take place.
So given the situation I’ll probably stick to withdrawing money to my card as with that method I can bypass the automatic currency conversion on PayPal’s side.
How to Link a Bank Account
To be able to process withdrawals to your bank account, you first need to set one up. You can also have multiple accounts.
In order to proceed, you need to be using the new PayPal interface.
Step 1 – Click on the Money menu item. You will be presented with the money management screen.
Step 2 – Find the button that says Add a Bank Account and click it.
Step 3 – Enter the IBAN number of your account and hit the Continue button.
Now all that’s left to do is to wait 2-3 days until the 2 small payments that PayPal makes appear in your bank account. Once they appear you can verify the account back in the PayPal admin interface.
The bank confirmation screen is very straightforward. Just hit the Confirm button in the first screen.
In the second screen, you will be asked for the amounts deposited into your bank account. Type them into the two boxes available and hit the Confirm button.
That’s it! Your bank account is now verified and you can withdraw money to it.
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I am looking to establish a company in Malta to opearte a fashion ecommerce business which will be processing payments through PayPal and Stripe.
On a separate forum, someone had warned that PayPal would be a problem in Malta since, and i quote, “It’s close to impossible to get a Business Bank Account for an E-Commerce online business with a local bank that has SEPA access”.
Apparently PayPal will force you to have a Maltese IBAN (despite IBAN discrimination being illegal, I’ve been told PayPal would close the account on “Internal Policy” reasons).
Interested to hear your thoughts on this – if the above is correct, would you have any other suggestions as to tax-efficient structures in the EU which solve this problem?
“Note that in April 2020 things seem to have changed on PayPal’s end and they now allow adding a USD bank account based in Malta as well as permit a higher limit on debit card transfers, although I’m not sure what the new limit is.”
Hi Jean, regarding this update – have you managed to withdraw USD to your Maltese USD Bank Account?
I just added my USD bank account to Paypal but they’re still converting to EUR when I try to transfer my balance.
Jean Galea says
Unfortunately that doesn’t work, but the higher limits on card withdrawals still apply.
Daniele Camilleri says
Hi maybe you can help an Italian client is not managing to transfer funds to a Maltese account holder what is strange is that he managed 500 euros when the limit should have been 500 dollars for not verified accounts
The maltese account is linked to a bank and verified now but he is not managing transfers
Paul Sant says
Trying to pay with pay all but keeps asking what provence it is.cant for the life of me enter Malta as the choice.
Thanks so much for all the information you provide.
The Business corp. is from Panama but the corp. Bank Account is in Cyprus. It doesn’t have a bank account anywhere else.
I’m personally not from either place.
Do I understand I can open a business paypal Cyprus but at some point will have to provide corp. paperwork which is from Panama.
Am I in limbo?
Christopher Bone says
From the moment that i withdraw funds from my paypal account to my visa how much time does it take to show in my visa account pls?
P.s payments from U.S
Bryan Ogden says
what do you recommend as a prepaid debit card for paypal in Malta? I had this option on my US account but this doesn’t seem to be available in Malta. Many sites only take debit/credit and not paypal.
You might try using Revolut but I haven’t done so myself. It’s the only prepaid debit card I use and apart from using it for PayPal (which I’m not sure it can be used for) it’s also great for currency exchanges.
I have a company in Delaware (USA) , but the bank account in Malta , with this upgrade of PayPal i can connect my PayPal account of the Delaware company with the account of Malta ?
That depends on where he PayPal account is based. If it was opened from Malta then you will be able to do that. If it’s from the US I doubt it. Let us know how it goes either way.
What is is exactly required in order to confirm the Maltese business PayPal account?
Do they ask for a utility bill made on a person same as for personal accounts?
It’s been a while since I did it but yes, I think that would be the basic requirement.
Update on my private account: After several “serious” emails to PayPal, they have added the capability to withdraw funds to my bank account, and the monies have just arrived. Case closed …. for now
Excellent glad to hear that.
Hi Jean, I wished I had found your post before. I had opened a private PayPal account the other day for a larger, 4-digit sum I received from the USA (and didn’t want that company to put a cheque into the mail, which I now regret). I know PP well from my previous home in Switzerland. No issues there ever.
For over a week now PP is bombarding me with requests proof of address (as the amount is larger than USD 2500), documents not older than 12 months please (doesn’t say anywhere), another proof as Go Mobile never changed my Zip Code and details don’t match, having to add a credit card all of a sudden, waiting for days for this frickin’ code to show in the cc statement to confirm the accounts, same for the bank accounts, etc etc. Still I got withdrawal option US bank account or VISA card only. Sigh.
Meanwhile the limit got waived. However, this evening customer service tells me something about a regulation MT government that PP can only withdraw to a Visa debit/credit card or US account. So I typed back to them why on Earth there isn’t an alert when clients from Malta open an account etc. etc. and that I’m very disappointed. At the same time, I find out that due to a previous complaint I all of a sudden can withdraw to my BOV bank account …. at shitty exchange rates, of course. What a mess !!!!
Now tell me, I have a BOV Visa Electron card – and I’ve never paid any money in through my card number, which seems to be possible with my account. Where does that amount show up once arrived, in my bank statement, the bank account that card is linked to? I never had a debit card in my life, only “real” credit cards that work with separate statements. Pardon my ignorance 😉
I will send a message to PP that since Feb 2016 withdrawing funds to a bank account in Malta is now possible for private accounts. Thank you so much for this !!
You’re welcome Gabriele, the amount will show up in the bank account your card is linked to. If you want to do international transfers I would also suggest you take a look at doing that through Bitcoin, as I detailed in this post.
Thanks for this. Please kindly confirm if PayPal still allow withdrawal to Maltese Bank account.
As I couldn’t find the option. Only US account and Card is available.
Yes it is available. Please contact PayPal support if you cannot see it in your options.
Thanks for your reply. I eventually got to know this option isn’t available for Maltese personal accounts, but only business accounts.
I had to upgrade to see the option.
You have been really helpful, if not for your images, i wouldn’t have known.