Yes its official. Paypal now allows those in Malaysia to withdraw their USD funds into their Malaysian Bank Accounts! Happy day!

There are some guidelines here for linking your Paypal account to your Malaysia bank account. Basically, most banks in Malaysia are accepted and Paypal has even provided the bank’s MEPS code so you don’t have to go hunting for it

If you are wondering, yes there is a fee of RM3 if you withdraw amounts below RM400 but for RM400 and above withdrawal is free.

Also, do ensure that your name is correct and matches your bank account name and account number because there will be charges if the bank refuses to accept your payment – Paypal’s charges will be RM15 and who knows how much the banks will charge!

The upshot of this too is that you might now be able to fund your online or ebay purchases with your bank account instead of having to use a credit or debit card. Since there is now a RM50 service tax on credit cards, some people might be thinking of cutting up most of their cards.

I’ve done a test withdrawal with a small amount – I prefer to incur a small charge to see if it works well, rather than have RM400 floating in cyberspace somewhere! Will update on how it goes.