How PayPal really works for Israelis and Shekels

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There always seems to be confusion regarding how Israelis can use PayPal – can they use it in their currency, i.e. Shekels? Can they withdraw funds? Are there limits they should know about?

Almost a year ago I blogged about an announcement on the PayPal blog regarding new PayPal currencies, one of which was the Israeli Shekel. Despite that post, some questions still persisted, and the accuracy of the information was doubted.

Well, I’m happy to say that I now have the latest info regarding PayPal and Israel straight from PayPal! The following information was provided by Nissim Ohayon, Sr. Business Development Manager at PayPal Israel:

While PayPal services are not fully rolled out for Israeli merchants, thousands of Israeli merchants are using PayPal for cross border sales with great success. Here are some links that will direct you to the products and features available to Israeli merchants today:

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  • Main PayPal web page for Israeli users and merchants: www.paypal.com/il.
  • Small to Medium Merchants: 
    • Email Payments – Click here for full details
      • No integration required.
      • Accept credit/debit card as well as PayPal balance and echeck payments immediately.
    • Website Payments Standard (WPS) – Click here for full details including fees and integration tools. 
      • Simple to Integrate. Select from one of three easy integration options.Click here for details.
      • No need to “qualify.” Just open a premium or business account online and follow the instructions.
      • Your site can be integrated and ready to accept credit card payments in a single day.
      • Click here for an online demo (may take a few minutes to load).
      • To see if your shopping cart software already has a kit for Website Payments Standard, please follow this link.
  • Merchants with their own merchant account: 
    • Express Checkout (EC) – Click here for full details including fees and integration tools.
      • Some advanced programming may be required.
      • To see if your shopping cart software already has a kit for PayPal Express Checkout, please follow this link.
      • If your shopping cart is not listed on the page at the previous link, please direct your developers to this link to review the API documentation on how they can integrate PayPal Express Checkout to your site.
      • Your account may need to pre-qualify for Express Checkout, so please contact me directly if you wish to integrate this product into your site.

A few important notes for Israel-based users and merchants to consider:

  • Withdrawing funds is now available directly in Israel, in New Israeli Shekels via an Israeli-issued Visa card. Since Visa cards in Israel are typically linked to a bank account, those funds do settle directly into your bank account, via your credit card. Please note that this feature is restricted to a $750/day limit. We have plans to improve on the withdrawal methods for Israeli accounts in the coming months, so please stay tuned.
  • PayPal users and merchants that have a US bank account may link it to their PayPal account even if their PayPal account is here in Israel. This allows Israeli merchants and users to move funds in and out of PayPal directly to/from their US bank account without the daily limits mentioned above.
  • The PayPal web site will not be available in Hebrew in 2009. This means that Hebrew sites will not be able to integrate with the service yet.

To get started, open a PayPal Premier or Business account to start accepting credit cards and PayPal payments today by clicking here.

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Note what it says about withdrawing funds: it can only be done with a Visa brand credit card, and the money is transferred through the Visa network and arrives in their bank account. This is because the overwhelming majority of Visa cards in Israel are linked to a checking account. So when Visa goes into the account to withdraw funds, funds will be deposited instead (or, at least offset from some of the withdrawals for Visa transactions).

I hope this information is helpful!

Responses (70)

Michal

May 6, 2009 12:58 am

Hi,
We have PayPal integrated into our Israeli site that sells abroad in EUR, GBP and USD – we have a customized shopping cart and integrate PayPal for payment processing only. The limitation we have found is that once a transaction occurs on PayPal, there is no auto-return to our site because we are an Israeli site. There is some limitation that PayPal won’t automatically redirect the customer back to our site. The customer can click back to our site but if we want to track for analytic purposes a completed transaction, we can’t do that with PayPal.
Have you heard anything about that being solved? Any idea where I can go to get help with that?
Thanks,
Michal

Rachel

May 6, 2009 3:27 am

Are you sure it is not a setting you need to check? I am still using a Canadian paypal account and drawing to a Canadian bank, but I remember there being a check box somewhere about returning to the site after a completed transaction. It was not automatic.

Debbie

May 6, 2009 3:33 am

Thanks for helping to clarify things.

I, too, have a question. Can you please explain exactly how I use VISA to get money into my Israeli account? It’s still not clear to me.

Let’s say I have some dollars in my PayPal account. What is the process in order to get that money into my bank account? Is this something I can do whenever I want? How long does the process take i.e. is time needed for the transfer to clear or is my money immediately available to me? Do I have to transfer it into shekels as part of the process or can I keep it in dollars?

Again, thanks to you for opening the discussion about this. It’s a critical topic.

Debbie

Dave

May 6, 2009 4:47 am

In response to michal, are you sure this isn’t a small integration issue? Have you tried setting the PayPal variable called “return”. Furthermore, there is an option in the profile section in your paypal account to set this value. I’m might be able to help further if you’d like.

Sharon Avraham

May 6, 2009 10:03 am

I have a client in the U.S. who pays in dollars, this happens about once a month, he pays $25, I set up my account on PayPal so that our Visa card (Bank Discount) is credited with the funds. By the time PayPal and Visa card have finished with my $25 which should be say NIS100, I only receive NIS80. Do you think the fees are reasonable because it would appear that I am paying about 20 percent in fees, or am I doing something wrong?
Thank you so much for your attention.

Nissim Ohayon

May 6, 2009 10:35 am

Hi Debbie,

The way to direct funds from your PayPal account to be withdrawn to your Israeli-issue Visa card is to go to the Withdrawal page in your PayPal account. As long as you have a Visa card linked to the account, you should see the Withdrawal option.

The funds will appear in the bank account lined to the Visa card. This happens on the regularly scheduled settlement dates of your Visa card. As such, the time it takes depends on the schedule set by your bank for settlement against you bank account.

The funds transfered are converted to Shekels and a conversion fee of 2.5% is used.

Please note that there is also a 22 ILS fee for each withdrawal. This is a flat fee, so it usually best to wait until the amount is significant enough to warrant the fee.

Hope that helps.

Nissim Ohayon

May 6, 2009 10:37 am

Hello Sharon,

As mentioned in the above comment, it is probably a good idea to let the funds accumulate a bit more before withdrawing if you want to minimize the fees.

Michal

May 7, 2009 1:57 am

Dave,
We have checked the box that says return to site and it doesn’t work. It took us hours on the phone to PayPal and going through about 10 different people to finally get the answer that it is an issue with Israel.

I hope that it is just an integration issue and that it isnt a system issue but we haven’t been able to solve it yet.

I would be happy to have a conversation with you about this. Please email me directly to michal_w@ultra-gen.com.

Thanks for the help.
Michal

Debbie

May 7, 2009 2:30 am

Thanks for the reply, Nissim.

So, if I understood correctly, while I can transfer money over to my Visa card at any time, in fact I will only receive it in my bank account once a month when my Visa payment goes through.

That seems like a very difficult way to do business.

Does PayPal have any plans to allow users to transfer money directly into Israeli bank accounts?

Does PayPal have any plans to allow users to transfer money directly into bank accounts overseas – other than to US bank accounts?

Could you share more information about how you plan to improve withdrawal methods? This is a critical issue for me.

Thanks again for the opportunity to get our questions answered.

Nissim Ohayon

May 7, 2009 5:33 am

Hi Debbie,

PayPal is working on the feature you are looking for as we speak (withdrawing from PayPal to an Israeli bank account). Once we have a final launch date for the feature, it will be announced publicly, as this is a very important feature that users like you have been asking for for some time now.

To my knowledge, the withdrawal to alternate countries (besides the US) is not a planned feature at this time.

Dan

May 7, 2009 8:16 am

I use Mastercard, with Bank HaPoalim…

This is not a visa card, so I am out of luck?

Nissim Ohayon

May 7, 2009 3:41 pm

Hi Dan,

Bank Hapoalim also issues Visa cards. I believe you can just request a Visa card from your bank, and then you can withdraw too.

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lesley

May 13, 2009 4:59 am

my organization (an NGO “AMUTA”) would like to oppen a paypall on our new site.

the bank does not give NGO’s a credit card. can we set up an account with pay pall without a credit card i.e. have the funds we receave via paypal directed into our bank account?

Nissim Ohayon

May 14, 2009 9:33 am

Hi Lesley,

I believe that you can get a Debit card with Visa from your bank. If so, you should be able to withdraw funds through the Visa Debit card to your bank account.

Betsy

May 22, 2009 7:29 am

I am just now restarting a freelance business after a 2 year break to take care of my family. I don’t have any credit card with VISA, nor enough in the bank to get such a card from Bank Mizrachi, nor do I have a US bank account.

My main client is willing to pay me only via PayPal.

I tried linking a relative’s US-based VISA credit card to my Paypal account to try to withdraw my first paycheck, but it doesn’t work because my address is already set to Israel and the credit card mailing address is in the US.

I desperately need to get this money out of my account to buy groceries. Please help me! What should I do? This is only the first client! Others to follow!

Nissim Ohayon

May 24, 2009 4:37 am

Have you asked your bank for a Visa Debit card? If your bank does not want to offer you the services you need (debit or credit), you can certainly shop around to one that will. Here are some links to get you started:

Isracard: http://www.isracard.co.il
LeumiCard http://www.leumi-card.co.il
CAL: http://www.cal-online.co.il

Indeed, if you explain to the clerk that you need the Visa card in order to direct funds into an account they manage, they should surely want to service you gladly. Maybe it is time that we demand a bit more customer service from our banks in Israel. Who knows, this could be the start of something big ;-)

Miriam Schwab

May 24, 2009 4:42 am

Nissim – customer service from an Israeli bank?! In our dreams. First they just need to start playing fair, like paying interest to accounts in plus rather than just demanding interest on overdrafts.

Nissim Ohayon

May 24, 2009 4:48 am

Baby Steps. First, let them see that customers will switch and take their business to someone that will service their needs.

In this small example, a bank that does not want service the needs of issuing a simple Visa Debit card, should be exposed for their lack of service, and promote the ones that help customers out. Like I said, this could be the start of something.

If we all demand more from the banks and make good on our threats to move our money and business out of one bank to another, we could finally break this monopolistic behavior of the banks in Israel.

Yes, it is my dream too.

Dave

May 24, 2009 4:56 am

You can keep a positive balance in your PayPal account and use that to pay suppliers, etc. Save currency conversion fees and keep your money away from Israeli banks. It’s not a perfect solution, but it’s a start. Many of my suppliers gladly accept PayPal. PayPal still has a long way to go in Israel, but from what I see in this blog and elsewhere, PayPal Israel is moving in the right direction.

Betsy

May 24, 2009 11:34 pm

Nissim,

Please answer my question! I really need this money now, I cannot buy groceries. As far as “suppliers,” Dave, since when has a supermarket accepted PayPal?

I asked Paypal what to do via their web form, and the clueless answer came back this morning saying I should request a check. But from what I saw I am not allowed to ask for a check if I live in Israel. So much for that.

What should I do?

Betsy

May 25, 2009 3:38 am

Nissim,
I don’t have any money at all, only debt, except what is in PayPal!
(There were terrible circumstances beyond my control that landed me in this situation temporarily…)
Anyway, I can’t take my business to any new bank if I don’t have any money to deposit. : ( Really, why would they want my business?

So this is no answer. How do I get my money out of Paypal?

Nissim Ohayon

May 25, 2009 3:25 am

Betsy,
The answer is in my response. You need a Visa card.

The rest of my message was to try to give you some ideas on how to get one, despite the bank telling you that you can’t have one.

Dan

May 25, 2009 3:41 am

Betsy,

Contact me off list, maybe I could help you out.

Eliyahu

June 8, 2009 5:36 pm

Hi Nissim

The above comments serve to at least make me realise I’m not the only one with difficulties!

I’d like to share this with you:

I bank with Bank Leumi. I owned an Electron debit card. I used it to withdraw funds from Paypal and it seemed to me that the money went through to my bank account after a day or so after the Paypal transfer.

Anyway, I upgraded my card to a Multi card which I was told was *much* better. And I destroyed the Electron card. My next transfer from Paypal came through on the day after the debit to my credit card would occur – and I was forced in now waiting a full month before those funds cleared into my bank account.

When I told my bank this story, they looked at my Multi card like I was mad, wondering what the Multi card was. It was a third pary card, though I never knew this because I ordered the card from LeumiCard thinking it to also be Bank Leumi!

So, I asked the bank for a Bank Leumi Multi card, which they issued, though while they told me this would be far better than the third party card, it seems it’s exactly the same… To say the least though – they decided on their own accord to change my order, and issued an ordinary Bank Leumi credit card. So I’ve now had to wait another full month for my next Paypal transfer as the last funds did not – as they explained – go through immediately.

Today, I went into Bank Leumi and spoke personally to the bank manager (wow!) He told me there is no such a thing as Paypal and that the only way to do business is to purchase one of those old credit card swiping machines. He explained I should ask each individual client who I sell something to, to please tell me their credit card number, and I could then enter it into this machine and could then do the transaction. (Wonderful!)

There was no way I could convince him that Paypal existed. I went to a number of tellers asking them for help as well – and each of them cringed their foreheads as they looked at me as if I was from Mars. There is no such a thing as Paypal they said. None could help me.

My issue of course is being able to get the money from the card into the account ASAP – as others have pointed out here. Am I wrong in assuming that this could actually be done using a debit card instead?!

When I asked the bank manager about the Cash Card that Leumi is supposed to have, he once again explained that one can never receive money on a credit card and I must get it out of my head as soon as possible that such things could be done! Going back to the Electron would be a waste of time – they explained, because I already have a proper credit card.

There obviously wasn’t anyone I could complain to, and nobody who would give me better service!

I tried speaking to a number of tellers, who likewise knew nothing of any credit cards that Leumi has, including the Cash Card, which they thought meant that I wanted to withdraw money from a Kaspomat.

My bottom line question is… Is there at least a debit card I could order that would allow me to get the money from the card into my account faster than having to wait a full month (at times) until the next time the credit card company debits the card?

Indeed, when I called Leumicard, even the manager there (or a manager there – I don’t know how many there are) had no idea what Paypal was either refusing to believe that business could actually be conducted on the Internet in any other way than using the ordinary credit card system used in the local Makolet.

I’m happy to order a debit card meanwhile, if this will allow the process to work faster. Can it be done, and if so, do you personally know *any* particular bank that would be happy to help me out – in English of course (to make sure we both understand what’s going on!)

I’m really looking forward to a system that allows moving the funds directly into the bank immediately – and one which also has no $750 restriction.

Thank you.

Nissim Ohayon

June 10, 2009 12:40 pm

Hi Eliyahu,

If this were the first time I had experienced banking in the Holy Land, I would surely read the above as fiction. Alas, it is all true. Now, forcefully biting my tongue to not let loose my feelings on the matter of banking in Israel, let me just give you the facts…

Currently, Israeli PayPal account holders can only withdraw funds directly in Israel through a locally issued Visa card. It is not ideal, as there is the $750/day limit (approximately 3,000 ILS/day), but it is what it is for now. Stay tuned though, direct connenction to Israeli banks is coming soon. As soon as we have a date, we will announce it.

There is no point asking the bank too many questions about the PayPal functionality through the Visa card. Transfers are being done through Visa internationally, and do not require Israeli banks’ intervention. As such, they are not expected to know anything about it.

As for the length of time that it takes, it is purely a function of the billing cycle of the Visa card with the bank account.

Finally, to your question of whether it needs to be a Visa Credit or Debit card, there is no differnece from our perspective. As long as the Visa logo is on the card, and you have a 16 digit card number, it should work fine. I am curious to know however if anyone has a debit card that settles into the bank account more quickly than once a month (as you have indicated above).

You are welcome to “Follow my Tweet” which is brand new (not much there yet). There, you will be notified of little known, or newly released features from PayPal in Israel.

https://twitter.com/PayPal_BaAretz

Cheers,
Nissim

Fred Schlomka

June 18, 2009 10:43 am

Will Israeli Paypal accounts be able to get Debit cards like US accounts can have?

George Farah

June 22, 2009 11:57 pm

I’m sorry but I could not withdraw an amount from my account in Papal because I could not understand what is Code Giuchet and what is RIB Key?
Even the clerk in the bank could not help me.
So how can I get my money?

buywine

June 23, 2009 12:43 pm

I would love to use paypal but they dont allow shipping to Israel. I guess this is buyer protection bec Israel is a warzone and Paypal can hardly be expected to guarantee deliveries in the 3rd world. Can I not turn this off and use Paypal to ship in ISrael? It would seem a simple request for the company that deals in Israel?

Fred Schlomka

June 23, 2009 2:06 pm

PayPal doesn’t ship anything and therefor can’t dictate to you where to ship your products. I sell goods off my website and ship from Israel, and I have made purchases on foreign websites, paid with PayPal, and had the goods shipped here. All the major shipping companies operate here, Fedex etc

However it’s possible that a site you have purchased goods from may not ship to Israel. That’s a different issue, not a PayPal issue.

Betsy

June 23, 2009 2:17 pm

I finally twisted the arm of my bank branch manager–really hard– and he gave me a visa debit card. I linked that card to my paypal account but now I am supposed to verify it by gettng some kind of 4-digit number on my card statement. I cannot wait that long for the money in the paypal account…i called up the bank but this number has not yet shown up on my account statement. where should I seek this number? it’s been a week since I linked the card.
Thank you.

buywine

June 23, 2009 2:25 pm

fred – what are you talking about? go to my website and try to pay with paypal with shipping address in ISrael. Paypal told me they dont allow shipping to Israel. It is not an option in the country field.

“PayPal doesn’t ship anything and therefor can’t dictate to you where to ship your products.” – It would be nice to think so

Fred Schlomka

June 23, 2009 3:35 pm

you should have online access to your account. That way you can monitor the account at any time, and see when PayPal makes the verification deposits

Fred Schlomka

June 23, 2009 3:43 pm

BuyWine – I’m only telling you my personal experience. Just checked your website and you are correct. PayPal refused to ship to Israel – and from an Israeli supplier no less – What Chutzpah!!

Do you have an Israeli PayPal account or a USA PayPal account? That might make the difference. You need to call them and sort this out

Nissim Ohayon

June 23, 2009 5:56 pm

Answering a few posts here today:

Fred Schlomka – Great suggestion. There is no such offering immenent, but we are always looking for innovative ways to bring great new services to our users. Thanks.

George Farah – Not sure what these codes are either. What language is your PayPal account interface in, French?

BuyWine – I was able to run throgh the checkout with my account, which had a local Israeli address already registered in it. We will get back to you offline about anything we find out. As for shipping in Israel, there is no issue there. You can ship to Israel, especially considering that your are shipping locally.

Betsy – Once you have initiated the process of Link and Confirm My Card from inside your PayPal account, you should be able to see the transaction within 2-4 business days on your debit/credit card statement.

Fred – Thanks for your help in trying to answer the questions ;-)

Fred Schlomka

June 24, 2009 6:47 am

Nissim – my pleasure. Direct Debit cards from PayPal accounts would be a big boost to your service in Israel. It’s standard for US accounts and would seem to be a logical thing to offer here.

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Fred Schlomka

October 28, 2009 10:51 am

any news on when PayPal Israel will allow linkage directly to bank accounts?

    Miriam Schwab

    October 28, 2009 11:19 am

    @Fred Not that I know of. PayPal recently appointed a new biz dev guy, but whether that means they succeed in getting the banks to work with them is another story. In the meantime, we’re stuck with Visa as our only option.

joe

November 15, 2009 6:21 pm

if you were paypal would you want to work with israeli banks? – what chance do we have…?

Nora

November 19, 2009 7:30 am

Hi,
I don’t have Visa and I don’t want to have another credit card. Is there any possibility to ask for a family member who has Visa to withdraw the money for me from PayPal?

Nissim Ohayon

December 1, 2009 2:17 pm

Hi Nora,

You are in luck. You no longer need a Visa card to withdraw from PayPal. Miriam blogged about quite nicely here:
http://illuminea.com/israel/withdraw-paypal-to-israeli-bank-accounts/

Just add an Israeli bank account to your PayPal account, and withdraw the funds directly.

Miriam Schwab

December 2, 2009 4:13 pm

Hi Nissim (and Nora, and everyone else),

I wrote a newish post on PayPal usage and the new option of connecting a PayPal account to your Israeli bank account here: http://illuminea.com/israel/withdraw-paypal-to-israeli-bank-accounts/.

Nissim, there are quite a few questions from users there, so if you can I think some of them would be happy to get answers from an “authority”.

Eliyahu

December 2, 2009 4:43 pm

Hi Nissim, Miriam – and all Israeli Paypal fans

Well I’m happy that Paypal have finally got it together and now allow direct transfers from Paypal account to bank account without the credit card intermediary. So much for my bank manager understanding Paypal (see my previous post!) I only hope he’ll understand my needs to obtain a mortgage one day – better than he understands Paypal (else I might be stuck with using a credit card machine to manage my mortgage payments!)

My question is this: I’m in Israel, but I also try to attract overseas buyers and donors to my site. They of course work in Dollars etc. while I’m working in Shekels. I understand there’s no problem in accepting either currency – and I’ve done it too. However, I’m at a loss for knowing which is actually the better currency to work in as the default currency for me. For example, can those in the USA pay in Shekels for things they wish to purchase from me – though their banks are working in Dollars – or MUST I set up the Dollar “Add to Cart” button for them?

Likewise for Israelis – is it a MUST that everything be set up in Shekels for them, or can they just as easily purchase off the Dollar “Add to Cart” button?

The reason I’m asking this is based upon transfer fees and the like. Though Paypal seem to explain their terms “clearly” regarding costs, personally I’m lost. I’ve now got two currencies set up – Shekels and Dollars. Money is paid to both. But when I withdraw, I have to choose which to withdraw from, or make a conversion and then withdraw.

Is it best to simply withdraw from each individually (and wait for each to accumulate to at least 1000 shekels before doing so – to avoid extra costs,) or to first make a transfer into one of the accounts (and if so which?) – and then make the transfer to the Israeli bank?

I’m trying to reduce banking and transfer fees, and would like to know the best way of using my Paypal account in Israel so that it ends up attracting the least Paypal and other fees along the way.

Thanks again.

Eliyahu

Nissim Ohayon

December 2, 2009 5:12 pm

@Eliyahu asked (allow me to paraphrase):

“how should I post my items for sale, in USD or ILS?”
The answer is that “it depends” on whether you believe that the buyer would think twice about making the purchase if he is faced with a currency conversion fee. You see, if the credit card owner pays his bills in USD and you charged him in ILS, then he will get a charge in the equivalent USD amount, plus the conversion fee. As such, receiving the fee in ILS means that you do not pay the exchange fee when withdrawing the funds, since they are already in ILS.

“Can I combine currencies for a single withdrawal, in order to reach the 1000 ILS minimum to avoid the 8 ILS fee?”
Withdrawals need to be made from a single currency. If you wish to withdraw more than you have in a single currency (like the ILS for example) you need to click on Manage Currencies in your account in order to covnert those funds to ILS.

Eliyahu

December 2, 2009 5:16 pm

I don’t mind your paraphrasing, Nissim… You answered the question perfectly. Thanks!

Eliyahu

Fred Schlomka

December 2, 2009 10:32 pm

It’s a real boon to be able to link Israeli PayPal accounts to both a USA bank account AND an Israeli bank account. Those of us who have accounts in both countries will now be able to do international bank transfers via PayPal for less cost than direct bank to bank transfer.

However there’s no excuse PayPal’s unfortunately low exchange rates for US$ to Shekels.

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Ingla

February 4, 2010 2:50 pm

I’m in Israel. I have a US PayPal account with a US bank and a US address.

Can I link an Israeli bank account to that US PayPal account?

Nissim Ohayon

February 4, 2010 4:23 pm

Hi Ingla,

To connect an Israeli bank account to a PayPal account, you will need to open a PayPal account and register it with your address in Israel.

Fred Schlomka

April 9, 2010 12:22 pm

Why is it that when I transfer money from my US bank account to my Israel PayPal, there is several days of ‘processing’ at PayPal-Israel before the funds are available. The money was removed from my US Bank account and there seems to be no reason why PayPal in Israel is holding it up. Maybe Bank Leumi is making a few dollars off my money before I can receive it . . . . ?

Dan

April 9, 2010 12:52 pm

when transfering dollars from paypal accounts to israeli bank account… is it my imagination, or does paypal automatically then committ a shekel exchange, and at a horrific rate.

if i want to transfer dollars to my israeli bank, i’d like to transfer to shekels when I prefer, and at the banks better exchange rate.

doesn’t that make sense?

Fred Schlomka

April 9, 2010 1:50 pm

Makes sense to me. I would use PalPal-Israel more if I knew that the exchange rates were not exorbitant. I’ve also stopped using the PayPal-USA debit card in Israel because of the lousy exchange rates. Much cheaper to transfer the funds from PayPal to my US bank account (free), then withdraw the funds with my US bankcard.

If PayPal wants serious businesses to use the service in a comprehensive fashion then the exchange rates need to be competitive.

Nissim? You want to weigh in on this?

Betsy

April 9, 2010 1:52 pm

Hi,
I want to say I am very displeased with the amount of time it takes to get money from PayPal into my Israeli bank account. It is NEVER 3 days. Why does PayPal say 3-5 days? I am also confused as to whether Friday and Sunday are considered business days or not–are we going by Israeli business days or US business days?

Also, the exchange rate is outrageously low from dollars to shekels. If PayPal is already making money on the transactions, why does it need to also make so much money on the forex?

I am glad to have the service but it could be improved in these two ways.

Fred Schlomka

April 11, 2010 4:10 pm

UPDATE – I transferred dollars from my US bank account to my PayPal-Israel account on the 7th April and I still have no access to the funds as of 11th April. That means PayPal has been sitting on my money for 5 days.

Very unhappy . . . . .

Fred Schlomka

September 16, 2010 1:27 pm

Update on the previous post. I have now transferred money several timed from Paypal to my Israel bank account. It takes 10-14 days every time. PayPal still insists it takes 3-5 days. It’s a lie. Bank Leumi in Israel operated paypal under contract, and I assume that my cash gets tied up in their legendary bureaucracy in transit. This means that Bank Leumi is earning from my money before it appears in my bank account. This is Bullsh-t.

Also it is still not possible to transfer foreign currency, Dollars or Euros, to an Israeli bank account from PayPal. They force you to exchange the money into shekels at really bad exchange rates.

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Eliyahu

June 6, 2011 8:26 am

Does anybody know if it is possible to set up a Paypal button that forces the client clicking it to pay for the service charge instead of the service provider having to always pay for it? A transaction involving – for example – 400 shekels incurs a cost of some 17 shekel. Sometimes the service provider charges the 400 shekel because that is the actual cost. The client is likewise prepared to pay the full amount – even if they must pay additional fees afterwards.

I notice something interesting in my list of Paypal receipts (payments from others.) I have some transactions that incur no fees. The person sending the money sent me the exact amount and Paypal did not charge any fees. Perhaps they charged the client – though I don’t know.

Can someone help to explain this and if it is in fact possible to get the client to pay the Paypal fees? There are in fact people out there prepared to pay the extra fee so long as they know they have paid the full amount to the service provider.

Thanks.

Eliyahu

Fred Schlomka

June 6, 2011 11:01 am

Eliyahu – If someone sends you a personal gift or payment, they can choose whether to pay for the transfer fee. The fees are also lower for personal transactions

What I do for commercial transactions is to include an extra 2.5% or so in the price I am charging the customer, so they ultimately pay the transaction fee even though it gets charged at my end. Transaction fees are also deductible as a business expense if you are declaring the income from PayPal transactions.

Eliyahu

June 10, 2011 1:28 pm

Thanks for your points Fred. I understand this issue of the person transaction now. I also agree with your including an extra charge – so long as one is selling an item.

It’s not so easy to explain to a person if you are offering a service that one’s price is “x” but because of Paypal, the new Paypal price is “y”. Whereas it’s far easier if they understand that the cost is “x” and they must pay any charges if they choose to use the Paypal option. Incidentally, I notice most of my transactions being billed with a service charge as high as 4 to even 5%! 2.5% would still be a pleasure!

How do you manage to deduct your Paypal service charge as a business expense?! On my end, we are continually perplexed that we must show up our income as the full Paypal amount. There is no option for speaking about the service charge as an expense because the receipts we submit must include the full Paypal amount that the client pays to us. So in truth we must submit full receipt amounts – even though technically we never see some 4-5% of the amounts documented.

Fred Schlomka

June 10, 2011 4:01 pm

Eliyahu – You can use the PayPal fees as a business expense by documenting the fees. Yes, you must include as your income the full amount you receive into the PayPal Account. However you should print out each month the PayPal Report the total fees for the month, then use those fees as a business expense, just as you use receipts from other business expenses. Keep the report in your records.

I have no problem explaining to people that if they want to use PayPal or a credit card then the cost is a little more than if they pay in cash. Most people understand.

Dominique

June 29, 2011 9:49 am

Hi

Does anyone know if it is possible to have Donations as part of PayPal in Israel? I belong to a non-profit organization and we are in the process of setting up a website and would like to have PayPal as an option for our future donors. I couldn’t find anything about the donations feature on the PayPal Israel site.
Thanks for your help.

teddy

September 5, 2011 2:26 am

I tried to confirm my Paypal account with Bank Leumi account. Paypal did NOT put a transaction there with a 4-digit code. The only code there is the final 6-digits of the card number, same as every visa card transaction has.

How is one supposed to confirm? Believe me I tried entering just 4 of the 6 digits but of course that did not work.

teddy

September 5, 2011 1:05 pm

I solved the Leumi paypal mystery: Instead of looking for the code on the main transactions page on the Leumi website, I checked the Visa transactions page, and there it was.

Guest

December 28, 2011 11:51 pm

I just made a blog post showing how to verify your PayPal without needing a bank account, you can check it out at http://whosthatguru.com – I just figured it may help some of the people who read your stuff so why not share it

Benny Barmo

March 3, 2012 4:41 pm

Shalom,
I wanted to know if there are any yearly limits for the sums that can be transferred through Paypal IL. I know that in some countries Paypal has yearly limits and, after having reached them, the accounts are blocked for quite a very long time.
Shalom
Benny

Benny

August 11, 2012 6:34 pm

Hello,
Does PayPal have an API for e-commerce developers?

Dena

December 13, 2012 12:44 pm

Anyone have an idea as to how I can deposit funds into my Paypal account? I want to make ebay purchases and the suppliers only accept Paypal.
Thanks
Dena

Fred Schlomka

December 15, 2012 6:06 am

First you verify your account by adding your Israeli credit card details. Then once you have gone through the process (takes a few days), any charges on your PayPal account will be billed to your credit card unless you have funds in the PayPal account.

Unless you have verified the account already, you will see on the right side of the PayPal webpage the following link: “Confirm my debit or credit card” Click the link and follow the instructions.

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