
Since 2007, Malaysian Paypal users have been able to withdraw funds to their debit card. Last year, PayPal added the ability to withdraw PayPal funds to Malaysian bank accounts.
However, the only way you could add funds to your account was via a credit card / debit card or by accepting payments from other PayPal users. This posed a few problems for Malaysians who did not have a credit card, as they have no backup payment system to be used with PayPal.
Recently however, PayPal announced their “exclusive” deal with RHB bank that allows you to connect your RHB bank account to your PayPal account. Therefore, you will be able to add funds to PayPal or make payments from PayPal using your RHB bank account. There is however an RM3,000 daily limit and fees:
- For transfers in Ringgit Malaysia (MYR), you will be charged MYR1.00 per transaction.
- For transfers in other currencies than Ringgit Malaysia (MYR), you will be charged MYR8.00 per transaction; the currency exchange rate used to convert the remitting funds from Malaysian Ringgit (MYR) into your selected foreign currency will be higher than the Bank’s applicable rate.
- If you are sending money to a non-Malaysian registered PayPal account eg. PayPal account in U.S. or Australia address, your PayPal account may be charged with cross-border fee which is subjected to PayPal’s User Agreement
According to the PayPal blog post:
To send money, RHB customers need an Internet banking account, but do not need a PayPal account. The receiver can deposit the money into his PayPal account or open a new PayPal account to receive the money. RHB customers can do more payment activities from their Internet banking site. They can split food bills, pay for informal services like housecleaning, pay monthly rent or course fees and even send money to relatives abroad.
This new development is good as it allows more Malaysians to make payments via PayPal. But the “exclusive” deal would probably mean that other banks will not be having this feature, which sucks. Great for RHB, but ultimately not good news for you and me.
If you’re from Malaysia and want to learn how to use PayPal, here’s the best place to get video tutorials: PayPal Malaysia












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