Israel PayPal accounts can now withdraw funds to Israeli bank accounts! Amen!

The day that I thought would never arrive is here: Israeli PayPal account holders can now withdraw their PayPal funds to Israeli bank accounts! Oh happy day.

PayPal says that it will take 3-5 days for your funds to arrive in your Israeli bank account, and there is an 8 NIS fee if you withdraw less than 1000 NIS at a time:

Withdraw PayPal funds to Israeli bank account

To add a bank account to your PayPal account, you have to fill out the following form:

Add Israeli bank account to Paypal

If you click on “What’s this?” next to where it says “Bank and Branch Code,” the following pop-up window will appear with the exact spelling of each bank in English for entering in the field called “Bank name,” and the exact bank code for entering in the field that says “Bank and Branch Code.”

Israel bank and branch codes for PayPal

In the “Bank and branch code” field, you need to enter the two digit code for your bank and then the three digit code for your branch number. So let’s say your bank account is at Bank Leumi in branch 368 – you would enter 10368 in that field.

Note that there is a minimum that you can withdraw, and that is 40 NIS.

I managed to add a bank account, but I haven’t yet tried withdrawing funds. But it seems to be set up to work, so hopefully we Israelis can now use PayPal as a real means for accepting credit card and online payments, without the stress we had to go through until now.

Responses (31)

Jerusalemstyle

November 13, 2009 1:42 pm

Thanks for the post..

Jacob Share

November 15, 2009 1:06 pm

Good writeup, Miriam. I expect that a lot of freelancers and small businesses will be happy about PayPal finally making this move. I know I am!

    Miriam Schwab

    November 15, 2009 1:10 pm

    Thanks Jacob! I was so happy to hear about this new development, I wanted to have a PayPal celebration. Didn’t happen, but it’s the thought that counts.

Tehillah

November 15, 2009 2:04 pm

Thanks Miriam – you saved me from making a potentially costly mistake on the bank code :-)

Marina Shemesh

November 15, 2009 3:10 pm

How secure is it to put your bank account details online?

Do one still have to have a Visa card connected to the chosen bank account?

Gidon

November 15, 2009 3:59 pm

What rate of exchange would the transfer be?

Up until now, I’ve been transferring dollars from my paypal to my USA account, then writing myself dollar checks from there and cashing them at a local chenge (sic) but I get a horrid rate.

Miriam Schwab

November 15, 2009 9:37 pm

@tehillah glad this post helped you out!

@marina nothing is 100% secure online. It wasn’t 100% secure when you could only link your Visa to your PayPal account. But if you are looking for a decent, simple way to accept online payments, PayPal is it, and it’s a risk we take. PayPal invests a lot in security which is comforting, but as I said – nothing is 100%

@gidon good question. Probably an atrocious exchange rate. But at least we can now withdraw unlimited funds, as opposed to previously where there was a cap, and there is no fee for withdrawals over 1000 NIS.

Svi Ben-Elya

November 16, 2009 12:47 am

Have you checked whether you can transfer NIS from your NIS balance without converting in $USD, then transferring to Israel, where you will need to convert back to NIS.

At least until recently PayPal always deleted from your $USD balance in order to withdraw funds. This result in a double loss on exchange rates.

Tony

November 16, 2009 4:35 pm

Is it possible to deposit money from my israeli bank acct into my paypal bank account?

Fred Schlomka

November 21, 2009 1:13 pm

I can’t find the form to fill out to verify my bank account. Where is it on the site? I also would like to know if I need to verify via a credit card or can it be done with a bank account?
Thanks,
Fred

Fred Schlomka

November 24, 2009 6:45 am

OK, I set up the Bank account with PayPal. It is also interesting to note that the same account can also be inked to a US Bank account, thus enabling international bank to bank transfers via PayPal.

However it is unclear whether I can transfer a PayPal dollar balance IN DOLLARS to my Israel Bank account. Or does PayPal transfer in shekels only with resulting huge exchange losses? Anyone know?
Thanks
Fred

Gidon

November 24, 2009 8:27 am

On the one hand, PayPal is great, I am a very satisfied user.
OTOH, there are some issues that people just can’t get their heads around about it.
Can one of the networking groups in Jerusalem invite Nissim Ohayon (or is it Oded Zehavi?) for a presentation and Q&A, to clear things up once and for all?

Nissim Ohayon

December 2, 2009 4:58 pm

Great post and comments everyone. I will try to answer you all here…

@Marina Shemesh asked:
“How secure is it to put your bank account details online?”
It is a good question to ask as you don’t want to be sharing your bank or other personal and/or financial details with just anyone. Therefore, who CAN you trust with these details? At PayPal we work very hard to ensure that you will always feel secure in sharing such details with us, especially when it means that sharing them with us, means that you won’t need to share them with anyone else that you use PayPal to pay with. Miriam’s answer above is very good advice too.

“Does one still have to have a Visa card connected to the chosen bank account?”
You will need a credit card (Visa, MasterCard or Amex) in order to use your account to make payments. A Visa card is no longer required as a means for withdawal however.

@Gidon asked:
“What rate of exchange would the transfer be?”
There is a currency exchange fee of 2.5% above our bank rate that will be deducted in the course of the withdrawal.

@Tony asked:
“Is it possible to deposit money from my israeli bank acct into my paypal bank account?”
No. At this time, we can only support funds going from PayPal to an Israeli bank account, but not the other way around.

@ Fred Schlomka asked:
“can I transfer a PayPal dollar balance IN DOLLARS to my Israel Bank account.”
No. PayPal balances are always withdrawn in the currency of the destination country, regardless of the currency of the account. You can still withdraw in USD if you have a bank account in the US.

@Gidon also asked:
“Can one of the networking groups in Jerusalem invite Nissim Ohayon (or is it Oded Zehavi?)”
Either one of us would be pleased to speak.

Dr. Nili Marcia

December 6, 2009 1:32 am

Thank you Miriam for this post. It and the answers to comments have been very helpful. I’m pleased that I saved your announcement about this post and waited until today to read it all as all my questions have now been answered in one fell swoop.

Charlie Kalech

December 16, 2009 12:48 pm

Thanks Gidon for your suggestion. Here is the result:

A Night with PayPal

Represented by PayPal’s Israeli Senior Business Development Manager, Nissim Yves Ohayon
Get an Update and Have All your Questions Answered from the Source

NIS 40 in advance with online registration
NIS 50 At the Door – Conditional on Limited Space Availability.
Paypal recently began supporting payments in New Israeli Shekels and as well as money transfers to Israeli banks. However, there are still numerous services they do not support in Israel. Come get an update on what Paypal is doing in Israel and where it is headed. Get your questions answered directly from PayPal’s Senior Business Development Manager in Israel, Nissim Yves Ohayon.

The night will include important updates for site owners and developers including services offered in Israel, tips about how to manage your account for the best seller and buyer experience.

You will also learn about the recent launch of the PayPal X Developer Platform. In particular, we will discuss how Web Applications Developers can leverage the Adaptive Payments APIs, and give some examples of applications that have been created using this set of APIs.

Get a preview of PayPal’s Channel Partner Program which will be launched soon. This program can help you get tools and support geared towards Web professionals.

Monday, December 21, 2009
20:00
JBS Technical Communications Services
Hatasiya 8 Street, Industrial Area of Talpiot
Directions

Space is Limited.

Pre-register at http://jwp.j-town.co.il to secure your place and receive your discount

Fred Schlomka

December 17, 2009 1:19 pm

This business of PayPal only allowing withdrawals in the currency of the destination country is a bit of a scam. They are making huge amounts of money on the terrible exchange rates they offer. There’s absolutely no technical or legal reason why any currency in your PayPal account cannot be withdrawn to a bank in Israel.

Unfortunately I cannot come to teh evening with PayPal but I would be interested to hear what PayPal’s Senior Business Development Manager in Israel, Nissim Yves Ohayon, has to say about the currency withdrawal issue.

Charlie Kalech

December 17, 2009 1:30 pm

Fred,

Let me know if you have a specific question and I will be sure to get an answer for you

Fred Schlomka

December 17, 2009 5:59 pm

Charlie –
my specific question is:

Why can’t we withdraw US dollars from our PayPal account in Israel?
Is it because –
A. The Israeli Government won’t allow it
B. It is technically not possible
C. PayPal would prefer to exchange the dollars into shekels in order to increase it’s profits though giving a below-market exchange rate.
D. Another reason

Thanks,
Fred

Pingback: Review of PayPal Israel Q&A Event with Nissim Ohayon | illuminea marketing and media

Uri

January 8, 2010 4:53 am

PayPal’s withdrawal system is theft. I thought the withdrawal is free, people payed my via PayPal, now I have to withdraw $3,500 US dollars into my bank account, and the exchange rate is 3.59063 shekels per dollar! I lose $128 or 3.66% of my money when I use PayPal. The 2.5% currency exchange fee Nissim Ohayon talks about is a scam! It’s not published on the website of PayPal.

Sarah

January 14, 2010 12:21 pm

I have been using PayPal to make purchases online until now. My payments go through my foreign currency account, which takes money from my shekels account and thereby incurs exchange rates. What is the difference in this new plan? Is it only related to withdrawals? Does the account automatically change over, or do I have to arrange it?
Thanks,
Sarah

David

April 24, 2010 1:48 pm

Are there any updates as of April 2010?
Is PayPal service is Israel better now for independent businesspersons?

Eva Nagy

May 19, 2010 11:30 am

Dear All,

I can confirm that PayPal are currently recruiting for Hebrew speakers in order to start up a customer support team for the Israeli market. Definite dates are not known yet, but the service may already kick off beginning of this summer. This should further improve their relationship with customers in Israel and provide some extra help for all of those in need. I have no additional details but I am sure that PayPal will take the necessary steps to notify the Israeli user community accordingly when the time comes.

Hezi Sochat

August 12, 2010 1:48 pm

Hello All,
I have a paypal account which i opened 7 years ago
when you had to be a US citizen.
now i live in ISRAEL and i tryed to attached my ISRAELI bank account to my paypal account, but i can’t enter the correct details because it’s always reffer to US bank details.
i have balance in my paypal account and i can’t withdraw the money.
Help any one ?

eva nagy

August 15, 2010 8:09 pm

Hi Hezi,

If you have opened your PayPal account in Israel, you should be able to withdraw to:

US bank account
Israeli bank account
Visa credit card

If your PayPal account you have is a US one (opened in US) you wouldn’t be able to add an Israeli bank account to that account. You’d be required to open a PayPal account in Israel (country of residence on your PayPal account is Israel).

Please also note that PayPal have now been offering for almost 2 months, customer service to its Israeli customer base. A very helpful team, situated in Dublin are ready to answer all your questions and queries. If required, Hebrew is spoken within the team.

You can contact the team by clicking on CONTACT US inside your PayPal account and you would be able to forward your questions either via email or phone.

Regards,
Eva

shalom yakir

June 14, 2011 10:14 am

I’m interested to learn how is Paypal actually operating in Israel. I will be very pleased in case you have some documentation that is possible to get through my email account. Unfortunately I don’t have an account in “Twitter”. Thank you very much in advance. Shalom Yakir, Israel.

Benji Lovitt

July 1, 2011 5:43 pm

Well, look what I found by Googling!

Miriam, I set up my account years ago from the US. Not sure what the ramifications are but when I clicked “Add Bank Account” (so I can deposit checks directly to my Leumi account thru my Paypal app on iphone), it’s asking for a routing #. I don’t even know if I have that here….is there a way to find out? Is this even possible?

THANK YOU!

Fred Schlomka

July 1, 2011 8:07 pm

Your US PayPal account cannot withdraw money to your Israeli bank account. You will need to open a new Israeli PayPal account, verified to your address in Israel, and your Israeli bank account.

Benji Lovitt

July 2, 2011 9:03 am

Paypal Tweeted me yesterday that their check capture only supports USD. Darn.

Charlie Kalech

July 3, 2011 12:59 pm

Paypal Israel (and other credit card processors) will be answering questions this Tuesday at a special event of the Jerusalem Web Professionals. For more info and to register see http://jwp.j-town.co.il/online-donations.php

isaac

August 18, 2013 8:21 pm

wait! I’ve been searching through the paypal website for israel and I can’t add my israeli account. Is this still a possibility?

Leave a comment