PayPal Business Account Hong Kong: Account Fees, Costs & Alternatives Explained

If you have an online business and get paid through PayPal, there are some costs you need to know about.

PayPal business accounts - also known as Merchant accounts - have different fees to PayPal personal accounts. It’s important to use the correct PayPal account for the type of transactions you make, or you risk having your account locked or closed down.

Here, we’ll take a look at the costs of using a PayPal business account, including the fees for receiving money and PayPal money transfer charges. As a comparison, we’ll also cover a smart alternative - Wise.

PayPal business account fees

When you receive an international commercial payment through PayPal, you’ll pay several fees¹. There is the transaction fee, which is a percentage of the value of the payment, plus a small fixed fee according to the currency. You’ll then also pay a markup of 3% on the currency exchange rate to convert the foreign currency into the local currency of your PayPal account.

Here’s a look at the fees and exchange rate used for a payment of HKD 10,000 to a US-based account, comparing a PayPal business account to a Wise Business account.

We’ll take a look at each element of the PayPal fees which are used for business customers, in just a moment.

Learn more about Wise Business

PayPal fees for sending money

There’s not usually a fee for sending money in the currency your PayPal account is held in. However, if you send a personal or commercial payment which requires currency conversion, you’ll pay a markup of 4% on the retail exchange rate.

PayPal fees for receiving payments

If you’re selling to customers based in Hong Kong, who have Hong Kong based PayPal accounts, you’ll pay a fee of 3.9% +HK$2.35 per transaction. If you’re working with customers based overseas, there is a charge of 4.4% of the transaction value, + a fixed fee based on the currency being used. You may also need to pay currency conversion fees, depending on the way the payment is structured.

Read more: How to receive money on PayPal HK: Step by step

PayPal fees for withdrawing

If you hold HKD balance in your PayPal Hong Kong account, you can withdraw to your local bank account. There’s a fee of HK$3.5 for withdrawals under HK$1,000 - there’s no fee for higher amounts³.

You can also hold USD in your PayPal Hong Kong account, and withdraw this to your linked USD denominated account. In this case there’s a 2.5% withdrawal fee.

If you hold any other currency in your PayPal account and want to convert it to the correct currency for your linked bank account - probably HKD or USD - you’ll pay a currency conversion fee of 3%.

Read more: How to withdraw money from PayPal in Hong Kong: Fees and process

PayPal Hong Kong exchange rate

If you send or receive a payment with PayPal which requires currency conversion, you’ll need to know the PayPal exchange rate. The exchange rate used by PayPal Hong Kong is created by taking the mid-market exchange rate - the one you’ll find on Google - and adding a currency conversion fee.

Here’s how PayPal explains it in their terms and conditions²:

“The transaction exchange rate is adjusted regularly and includes a Currency Conversion Fee applied and retained by us on a base exchange rate to form the rate applicable to your conversion.”

The currency conversion fee depends on the type of payment you’re making - typically 3% - 4%.

It’s worth knowing that not all currency exchange services add a fee to the exchange rate applied. If you want a provider which uses the mid-market exchange rate with no markup, choose an alternative like Wise. We’ll cover this in more detail in a moment.

How to sign up for a PayPal business account in Hong Kong

You can open your PayPal business account online. Simply head over to the PayPal Hong Kong website, and click to sign up⁴. You’ll need to enter some basic details, including:

• Your email address
• Your business information
• Your personal information

You’ll then receive a confirmation email. Open, click and follow the links in this message to get started. Once you have verified your email, you can link your bank account to make and withdraw payments. This involves entering your bank account information, and confirming by verifying 2 small test payments which are made into your account by PayPal.

With your PayPal account set up, you’ll see the different payment options available to you and can select the right ones according to your business needs.

How to use the PayPal business account

Your PayPal business account can be used to support your business in the following ways:

• Accept payments online via your own website
• Send invoices and have customers pay using PayPal
• Accept payments via marketplaces like eBay and Etsy
• Use a PayPal link to receive payments through email, social media and instant messages

Making or receiving international transfers? You could save more with Wise

If you run your own business, saving money on international payments is a smart way to protect your profits. Don’t pay more than you have to, to connect with customers overseas, pay employees in other countries, or work with suppliers based abroad. You could save money by using Wise.

Wise payments are sent using the mid-market exchange rate with no markup - and avoid the SWIFT network, which means no correspondent bank charges to worry about. You just pay a low transparent fee when you arrange the transaction, and you can see immediately how much your recipient will get in the end.

Here are other great features that come with a Wise Business account:

• Free self-service account setup: Open your account online in minutes with no monthly fees and start enjoying hassle-free payment services right away.
• Manage global funds with ease: Get paid in 23+ currencies in one account, including local account numbers for 8+ major currencies, so you can receive local transfers for free.
• No hidden exchange rate markups: All fees are transparent, with real-time market exchange rates, and fees as low as 0.26%. Save more on every transaction.
• Instant cross-border payments: Send money to 140+ countries. Quick processing — over 60% of remittances arrive within 20 seconds. Track your payments in real-time.
• Easily handle bulk payments: Upload a CSV file and the system will process up to 1,000 payments at once. You can also integrate Wise’s API for fully automated payment workflows.
• Professional invoicing tool: Create and send invoices, add your account details or payment links, making payments simpler and quicker.
• Boost team collaboration: Add team members to your account, work together on payments, download statements, and track transactions more efficiently.

It’s quick and easy to open a Wise Business account, with a fully digital application, verification and on-boarding process. Sign up today to experience an efficient cross-border payment platform that helps streamline your business operations and improve your company’s competitiveness.

Get started with Wise Business

PayPal Hong Kong contact - How to get in touch

To get in touch with PayPal, you’ll need to visit the PayPal Hong Kong website, and follow the steps laid out⁵ ⁶. You can log into your PayPal account to send and receive secure messages, or find answers to common questions in the FAQ section. You can also use the community resources which are available online.

If you’re building your business you’ll want to be able to work with customers and suppliers in other countries as easily as possible - and without paying high fees - you should check out Wise.

Sources used in the article:

Sources last checked on 09-September 2020