Buying and selling Paypal to convert funds to cash

We’ve already outlined here how to withdraw PayPal in the Philippines and we also have a bustling discussion here of the details of these withdrawal methods.

Almost all of these ways, however, incur a certain amount of transaction fee, for example, the $5 that PayPal charges whenever you make a transfer to your local debit or credit card. At times, you also lose on the exchange rate because the banks’ rates are often lower.

So is there an alternative way to convert PayPal funds to cash without incurring a lot of fees and without losing on the exchange rate?

Yes, by selling your PayPal funds.

How it works

The idea is you negotiate with a person interested on buying PayPal funds regarding the terms of the transaction. You both agree on the rate and payment method.

Both the seller and buyer benefit from this method. If you are a seller, you can charge a premium on the exchange rate if there are very few sellers. You can also easily convert PayPal to cash without incurring a lot of transfer fees. In addition, these is less waiting period because you can choose to complete the transaction in less than a day, as opposed to waiting for weeks to receive the PayPal withdrawal.

If you are a buyer, you can use this method to easily acquire PayPal funds (currently, the only way to fund a PayPal account is by transferring money from a US bank account). If you are buying online, you get to save on the fees because you will now be using your PayPal balance rather than have the transaction amount charged to your debit or credit card.

The Risks

This method eliminates some of the transaction fees but it is not without risks.

For one, PayPal disallows currency trading. So as to not raise any red flags, never put in the “Memo Field” that the transaction is, say, “for currency exchange” or “for currency trade.” If PayPal suspects your account is being used for trading currencies, your account may be limited.

The other risk refers to the transacting parties. If you are a buyer and made payment ahead of the transaction, you might lose if the seller is a scammer who decided not to send you the funds.

If you are a seller and transferred PayPal before being paid, you might lose if the buyer is a scammer who decided not to send you payment.

It might be difficult to file a dispute claim in PayPal because you do not have proofs of the transaction.


Be warned that although buying and selling PayPal funds reduces the costs of transaction and losses on the exchange rate, it also increases the risks of being scammed.

That is why we strongly advise you to use this method at your own risk. You should deal only with people you know or those with good reputation online. You also need to impose controls that will ensure that your transaction can go smoothly and scam-free.

Be reminded that Pinoy Money Talk cannot and will not be held liable for any losses you may incur for any trade you conduct via this website.

For those looking to buy or sell their funds, take a look at the PMT Forum.

If, however, you prefer to withdraw funds the safe way, just use the traditional method of withdrawing it to your debit or credit card in the Philippines.

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19 thoughts on “Buying and selling Paypal to convert funds to cash”

  1. My advice is simply to accumulate the funds and transfer it all at one time. the best way is to send it via xoom and opt for a dollar remittance + bank pick up (via BDO). You can just ask the teller to convert the $ into Peso and the BDO rates are very good. Ciao!

  2. Hi James!

    I withdraw Paypal money through xoom every week, the last of which was this morning. No problem ever encountered, except that xoom to bank deposit takes 1 ~ 4 days while xoom to bank pick up takes only 1~ 1.5 hours.



  3. Good day folks i was wondering if anyone would be willing to sell me $10 of paypal credits as i just need to pay for a recurring charge. i’ll pay it $15 mail me. thanks.

  4. I have been using Paypal for quite some time now and what you’ve pointed is exactly what brought me to the idea of Instant Paypal Remittance. You can check it out at there’s an faq and if you have additional inquiries, feel free to send me a quick note. 

  5. Hi we are also selling PayPal funds you can Contact me at +254714959791 or Skype Raphael.jerry we are looking for regular buyers


      I tried to transfer $80 PayPal to Liberty Reserve and they took my money without any response! It has been three week since I sent it and still no word!

      Look elsewhere if you wish to make a successful trade.

  6. Fastest way to get Paypal or Skrill etc. into cash is Ukash4cash…they take your payment to them and send the money to you less their fee by Western Union.

    I am pretty sure they have a 30 minute guarantee

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