CincauHangus has just given me a head up; he can now receive payments in PayPal as usual. I assumed that Malaysians who stayed waiting without playing with these random bank accounts like I’ve suggested, your patience has just got rewarded. Login to your PayPal account to double confirm this. Leave a comment to help verifying this, thanks.

• Can you really withdraw from VMI?
• Have I really withdrawn before and how much?
• Any extra/hidden charges you’ve not covered?

I totally understand that everyone will be extra careful when it comes to monetary matters especially when it’s online transaction. Well, to answer these doubts together I’ve did a transaction on purpose last week and will list in details the steps, currency and extra charges involved. Hopefully this will help clear some clouds.

Transferring from PayPal to VMI Bank Account

I transferred $500 from PayPal to my VMI Bank account on the 27th March 2007 and there is no extra charges from PayPal.

Receiving money in VMI Bank Account

Money was sent from PayPal on the 27th and received in VMI on the 30th. Transaction will require at least 3 working days along with $2 as transaction fees. I’ve made a $500 transfer and received $498 in VMI.

The Currency Rate

One thing I like here is the US Dollars / Ringgit Malaysia currency rate is still doing at 3.527 even though a lot of banks has dropped to 3.4. Always perform a currency conversion check before you do a transaction. My remaining $498 will give me about RM1756.

Know the cost, Plan your withdrawal

Planning how much to withdraw saves you from extra costs. You will be charged for every transaction and query done at the ATM. Also, you must have at least $10 left in your bank account. If this is your very first transaction, you are only eligible to withdraw $488 ($498-$10) and that’s about RM 1721.00. This leaves you with 2 options:

1. Withdraw RM1500 with ($5/RM18 transaction fees)
2. Withdraw RM1500 with ($5/RM18 transaction fees), you left about RM201. Since another $5/RM18 transaction fees will be applied on the next transaction, you can only withdraw RM150 and have approximately RM33 left in account.

Its not worth withdrawing small amount (RM150) when transaction fee is standard, I personally don’t recommend it. You can leave the money lying inside VMI Bank account until the next transaction. Note: Not all banks allows RM1500 per withdrawal, I know RHB don’t, CIMB don’t but Maybank yes.

Summary

Here’s a roundup.

1. Transfer $500 from PayPal to VMI Bank Account, deducting $2 transaction fee, you left $498.
2. Assume you need at least $10 in your bank account, you eligible to withdraw $488
3. Each withdrawal will cost $5, you have $483 to withdraw.
4. $483 x 3.527, you have RM1703 to withdraw.

How you withdraw is entirely up to you, but remember each transaction cost you $5/RM18. I suggest you do it in bulk.

It’s been a common problem all these while for most Malaysians where we cannot withdraw money directly from Paypal. I believe the reason PayPal is keeping us out is simply because of the massive credit card fraud that happened few years back.

Here’s a way that I’ve been using for months and I’ve successfully withdraw from Paypal couple of times with the exchange rate about 3.5+. Before I start explaining, I must declare that in the process, you will need to buy a debit card and that is not FREE. However, methods and process of using the card all the way until you are touching your hot cash from ATMs are FREE; based on real life trial and error I’ve actually conducted. If you are still interested, continue reading.

In a Nutshell

Malaysians can do most transaction in PayPal except withdrawal because there is no option that sends money directly to local bank. The solution I see here is 3rd party debit card and this is how it works.

You will register with an online bank (recognized by PayPal) and then received a debit card. Transfer money from PayPal to your online bank account and with the debit card you can withdraw the money (in local currency) at almost any local bank ATM as long as they have a Cirrus or Pulse logo on it. Now that you understand the concept lets go about applying and using your debit card.

What is VMI ATM Card

The Virtual Money ATM cards are already used by hundreds and thousands of people throughout Asia.  You are able to withdraw local currency cash from any bank ATM that has a Cirrus or Pulse logo on it.  Most international ATMS in Asia with a Cirrus/Master card logo will accept the Virtual Money debit card.

How to buy and How much VMI ATM Card cost?

VMI ATM card is sold for $25.00 USD each plus the shipping fee below of your choice.

• $3.00 shipping via regular United States Postal service (USPS), receive in about one and a half week
• $8.00 shipping via USPS Global Priority, receive in about one week
• $20.00 shipping via USPS Express, receive in about 3-5 business day with tracking
• $40.00 shipping via UPS Express, receive in about 3 business day with tracking

1. Application of VMI ATM Card

1. E-mail millie[at]mooncash[dot]com with title "Application of VMI ATM Card" to inquire more information about VMI ATM Card (just in case charges have changed)
2. Millie respond with more information and the requirements needed to apply VMI ATM Card
3. Send $25.00 USD + Shipping fee to Paypal account: moonlover[at]aol[dot]com
4. Send another email to millie[at]mooncash[dot]com to notify that payment has been send, include your Shipping Address in the e-mail.

2. Arrival of card and Activation

1. Send the following information back to millie[at]mooncash[dot]com for activation
• Virtual Card number
• First Name
• Last Name
• Birth Date
• Telephone
• Address
• City
• State
• Zip
• Country
• Government ID number
• Telephone
• E-mail

Attached along a scanned copy of your MyCard.

2. Wait for card activation email

3. Activate VMI Bank Account

Once account is activated, follow the following steps

1. Go to VirtualMoneyInc.com and click on Activate Your Card.
2. Follow each steps until completion of activation. Do not forget your 4-Digit PIN. You will use it to withdraw from ATM later.
3. Login to your account and get familiar with it.

4. Transfer from PayPal to VMI Bank account

1. Login to PayPal -> Withdraw and click on Transfer funds to your bank account
2. Fill up the form carefully.
   • Bank Name: Southwest Bank
   • Account Type: Checking
   • Routing Number: 111900756
   • Account Number: (8) + (Last 9 digits of your card number)
   • Re-enter Account Number: (8) + (Last 9 digits of your card number)
3. Transfer money from your PayPal account to VMI bank account. It may take 3-4 days for transfer to complete.

5. The Withdrawing Moment

Check your VMI Bank Account 2-3 days after the transfer from PayPal. If you transfered $300 USD fom PayPal to VMI bank account, you will noticed there is a $2 USD charged (transaction free). You will end up receiving $298 USD. Also take note that you must have at least $10 USD in your account as balance.

Example: Assume you transfer $300 USD from PayPal to VMI Bank Account for the first time, you will received $298 USD after 3 days in your bank account. With $10 USD as balance remaining in your account, you are able to withdraw $288 USD. If you transfer $500 USD from PayPal to VMI the second time, you will received $498 USD and you can withdraw $498 USD.

I hope you get the picture here. The reason I’m emphasizing on this is because every transaction (Balance Enquiry, Wrong Pin entered, Withdrawal, etc) counts and you will be charged for it. Here is a run down of the charges.

Transaction Charges

• Funds Deposit 2.00
• ATM Withdrawal – US 1.80
• ATM Withdrawal – International 5.00
• ATM Balance Inquiry/Denied Inquiry – US 0.50
• ATM Balance Inquiry/Denied Inquiry – International 0.50
• Card to Card Transfer 2.00
• Card to Bank Account Transfer 2.00
• Bank Account to Card Transfer 2.00
• Monthly Account Service Fee 2.70
• Card to Check 4.95

How to withdraw with minimum charges

1. Login to your online VMI account, click View Balance in other currency and choose your local currency. This gives you an idea how much you can withdraw. Say if you have $298 in your account and with $10 as balance, you can withdraw $288 USD / RM 1010.
2. Hit to the nearest ATM and withdraw RM 1010 straight away. Remember: Balance enquiry online is free and whatever you do on an ATM is going to charge.
3. Before you run happily to the nearest ATM, try remember the steps in the following imags below. These are the actual images I took during one of my withdrawal.

Look for the Cirrus Logo

This site of the card up

4-Digit Pin. At some ATMs you might need to hit Enter manually

“Withdraw”

“Savings”

Confirm your amount, receive your cash

Don’t fear the long content I’ve put up here. It isn’t as complicated as it look. The reason I make this so long is because I won’t want to miss any small points that got you lost or stuck somewhere in the process. If you faced any problem, I’m more than happy to help. If you think this guide helps, please help spread. No one should be paying for simple knowledge like this. Happy money making online.

Updates: VMI Card is now selling at $30.00 instead of previous $25.00. If you are getting your VMI from other suppliers then that is at your own risk because I’ve not try nor going to try them.

It’s working and I’ve been withdrawing with it. Why am I doing this? Simply because I like the way Internet works. Free & sharing. If you are interested, please bear with me as I need couple of days to compile contents and images.