You must be using PayPal almost daily doing online casino transaction to play pokies games or using it for your personal business but one thing you may not be paying attention is what it cost and how exactly it worked. For small transactions PayPal can be a super convenient and a surprisingly low total cost option. However for more than a few hundred Aussie dollars it is usually expensive compared to almost any other method.
Also because PayPal has very low or zero fees (depending on the countries) as the amounts being sent become smaller PayPal becomes more competitive. So why are the total costs so high?
To understand things better you need to know what is total costs. So total costs include the difference between exchange rate offered and exchange rate big financial institutions like banks and PayPal get (which is called the wholesale or interbank rate).
A much more common transaction for PayPal is when transferring money less then a few hundred dollars. Less than a hundred dollars and PayPal is hard to beat.
As an example suppose a transfer of AU$100 would cost AU$7.50. While that is still 7.5% of your money to do the transaction it is a lot cheaper than other options and very quick and easy if your recipient wants to get paid into a PayPal account.
However, there are much cheaper options for international money transfers for amounts of more then a few hundred dollars. If you want to send small amounts though to fund your casino account you need to open an account with your email address and a bank account or a credit card. Get on to the PayPal website and create your account by entering the details that they ask for. Now you can send or receive money using your PayPal account.
In case of sending money to your casino account
It is possible to send money to casinos or anyone in practically any corner of the world. You only need to know the email address that is linked to the PayPal account of the intended receiver of your payment. PayPal operates in 200 markets and has the flexibility to make payments in more than 100 currencies.
In case of receiving money for your casino wins
Few Paypal casinos allow you to withdraw your wins by Paypal. Transfer of money from one PayPal account to another is almost instantaneous regardless of the location of the sender and the receiver. The only caveat if the person who has received the money wants to transfer it to a bank account, it may take several days. The receiver also has the option of holding the money in a PayPal account. Amounts can be held in any of 26 specified currencies.
Also you need to remember is that Paypal transactions are safe and secure. According to 2015 statistics 4.9 billion payments were processed for its 179 million active account holders. In the last quarter of 2015 alone, the payment volume totalled $82 billion.
PayPal lays great stress on the security of the data that is generated by the millions of transactions that it handles on a daily basis. A recent report in MIT Technology Review explains how the company is at the forefront of the branch of artificial intelligence technology known as ‘deep learning’ that enables it to minimize frauds.
Paypal fees and charges
As a recipient of money sent through PayPal, you will have to bear a fee imposed by the company. Although this varies in different countries, it is usually a small fixed amount and a percentage of the sum that has been remitted. If you are sending money from Australia to some other country, the fees would vary from 0.5% of the amount that you are sending to 3.3% depending upon the location of the receiver. This rate would apply if you are using your PayPal balance or a linked bank account.
If you are using a credit, the amount that is payable is higher. A charge of 3.9% or more, based upon which country the money is being sent to, would apply. There is also a fixed fee.
If you are sending money from UK to the U.S., the applicable expenses would be 1% of the amount sent using your PayPal balance or a bank account. A fixed fee of $0.30 would also apply. Currency would be converted using the wholesale exchange rate. A currency conversion fee of 3.5% of the wholesale exchange rate would be levied. Also the maximum transaction limit in Australia is $12,500 AUD. (you can also look for the latest in Paypal Australia online site)
As transferring money takes almost no time and Paypal systems and procedures are time-tested and fail-safe. Practically no other money-transfer service is as efficient as PayPal. It has adapted to a changing market by making its systems capable of handling mobile transactions.
Sending bigger amounts can be expensive because most of PayPal’s fees are charged as a percentage of the amount being transferred. You can find more about the fees and charges here. If you need to send a sum exceeding $300, it is better to explore other deposit options at the casino for funding your account to play games.