The recent Paypal withdrawal feature got everybody thrilled especially that bank fees are practically free for amounts greater than Php7,000 (and it’s only Php50 if less than that.) Never mind the lower exchange rates as that’s the only way banks benefit from this setup with eBay/Paypal.
The mystery though is that there still seem to be some form of bank fees as I personally experienced the other day. A week ago, I withdrew an amount of $200 from my Paypal account to see how much lower the exchange rates would go. It basically hovers somewhere around Php0.90 less than current day exchange rates. That means my $1 dollar went from Php40.60 to just ~Php39.70 when I transferred it to the bank.
Another withdrawal for the amount of $1,000 a few days later showed the same discrepancy in the exchange rates. Now we know why bank fees are free.
However, the actual amount that reflected in the bank is Php200 short. See screen shots below from Paypal transaction history and Banco de Oro online banking report.
Obviously, the missing Php200 was not reported as a transaction fee. My other theory is that it could be another exchange rate since the dates of transaction span around 3 days (though it’s weird that the rates ended up an with exact Php200 difference).
I withdrew again to another bank to see if there’s gonna be the same Php200 difference. Sent an email to eBay’s PR for SEA to clarify this as local banks are still oblivious of Paypal.