PayPal in Hong Kong
Estimate time to read: 5 min
If you’re concerned about opening up a business account here in Hong Kong, it could be on the top of your to-do list to get the processing work sorted by getting a PayPal account ready for your customers.
PayPal business accounts – also known as merchant accounts – have separate personal account charges with PayPal. For the kind of transactions you make, it is necessary to use the right PayPal account otherwise you risk locking or closing your account.
Now we’ll take a look at the numbers of using a PayPal business account, including the account receivable fees and the transfer fees for PayPal money
There are some expenses you need to know about whether you have an online business and get paid by PayPal.
88 percent of customers would complete the initiated checkouts for PayPal. Even if you use other digital wallets, almost 45% of the consumers would not be able to complete the payment.
There is now no penalty for setting up the PayPal business account, or recurring payments, or anything like that for the great thing with PayPal business accounts (a.k.a. The merchant account). However, should you choose to use any of the other functionality available in the PayPal business account, there are some payments attached.
So, what does it cost in fact?
Table of contents
- PayPal business account fees
- PayPal fees for sending money
- PayPal fees for receiving payments
- PayPal fees for withdrawing
- PayPal Hong Kong exchange rate
- How to sign up for a PayPal business account in Hong Kong
- How to use the PayPal business account
- PayPal Credit for Your Customers
- PayPal Hong Kong contact – How to get in touch
PayPal business account fees
You’ll pay several fees when you receive an overseas business payment from PayPal. There is a processing fee, which is a percentage of the sales amount, and a minor currency-based fixed fee. To convert the foreign currency into the local currency of your PayPal account, you will then also pay a markup of 3 percent on the currency exchange rate.
Here’s a short overview that we worked out for you to take a detailed look into all the costs of your local company getting a PayPal account.
PayPal fees for sending money
Generally, with whatever currency your account holds, there’s not a fee charged for sending money from your PayPal account.
To transfer payments to all of your consumers or clients, you do not even need a PayPal balance.
Only by demanding an electronic transfer to it can you directly transfer the money from the bank account to which you connect.
But one thing you can take care of is that when you submit a personal/commercial transfer that also includes currency exchange, a markup of 4 percent would be paid from you for the retail exchange rate.
PayPal fees for receiving payments
To put it in simple terms, there are only two types in which PayPal charges you for receiving currency – whether that’s by selling to local HK customers or customers worldwide.
You would ultimately need to pay a sum of 3.9 percent + HKD 2.35 per transaction for Hong Kong-based clients. But if the customers are worldwide, then you will be paid 4.4% + fixed rates.
Of course, based on whatever currency you are relying on the fixed fees are different.
Say that your payment is based on USD, so that would be a USD 0.30 fee. Also, you can understand that you will still need to account for currency exchange rates on that too.
PayPal fees for withdrawing
Likewise, the way PayPal charges you is dependent on two variables – whether your account is based locally or abroad. The withdrawal of HKD from your local PayPal account back to your HK bank account is only free of charge if you withdraw more than HKD1,000.
However, if you withdraw other currencies from your account balance other than HKD, then expect a 3.00% withdrawal charge to come your way for that.
If you withdraw less than HKD1,000, it is all right, too. There will only be a nominal fee of HKD3.5 to pay for your bill.
The payments will though, be a slight bit higher for U.S. accounts.
For instance, if you withdraw USD from your Hong Kong PayPal account to your U.S. bank account, you would have to pay an additional withdrawal charge of 2.5 percent for that.
Again, if you withdraw any currency other than USD, assume GBP, then the possibilities are there will be a small extra processing charge on your transaction for currency exchange.
PayPal Hong Kong exchange rate
Chances are you may need to use various foreign currencies with your PayPal business account if you’re doing business in other nations. If the cross-currency trade is needed for your company, then you might need to understand how the PayPal exchange rate works:
Usually, the PayPal conversion rate requires a transaction charge, which accounts for up to around 3-4% of the type of payment you pay.
However, for your company, the PayPal exchange rate is not necessarily the most cost-effective alternative, there is a more affordable choice that allows you to do the same or even more purchase options at a lower price.
How to sign up for a PayPal business account in Hong Kong
You can open your PayPal business account online. Just go over to the website for PayPal Hong Kong and choose to sign up. Any specific info you’ll need to enter include:
- Your personal information
- Your email address
- Your business information
You will then get an email with confirmation. To get started, open, click, and follow the links in that same message. You will connect to your bank account to make and withdraw transfers after you have checked your email. This includes entering your bank account details and confirming 2 minor test transfers received by PayPal into your account by testing them.
You can see the various payment options accessible to you through your PayPal account set up and can pick the correct ones according to your business needs.
How to use the PayPal business account
To help your company in the following ways, your PayPal business account can be used:
- To collect payments through email, social media, and instant messages, you can use a PayPal link.
- Using PayPal, send invoices and make clients pay
- Accept online payments from your website via PayPal
Another advantage is that to do that you can also buy online either by individual or invoice. So, in the PayPal account, your clients can easily pay and you can even accept payments from other marketplaces, including Amazon and others.
PayPal Credit for Your Customers
If you are thinking about pushing more transactions per customer, then you might want to take that into consideration buyers would not pay interest if they pay full price on payments above $99 in 6 months period.
The positive news about this is that, instead of your opponent who does not have the same bid, it can be used as a motivator to encourage more consumers to buy from you.
PayPal Hong Kong contact – How to get in touch
You will need to visit the PayPal Hong Kong website and follow the measures outlined to get in contact with PayPal. To send and receive safe messages, you can log into your PayPal account, or find answers to popular questions in the FAQ section. You may also use the tools of the community accessible online.