How Malaysians can withdraw directly from Paypal

Note: This post was first published on the 19th March, 2007.

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

Here’s a way that I’ve been using for months, and I’ve successfully withdrawn from Paypal a couple of times with the exchange rate of about 3.5+. Before I start explaining, I must declare that you will need to buy a debit card in the process, which is not FREE. However, methods and processes of using the card 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 transactions in PayPal except withdrawal because no option sends money directly to local banks. The solution I see here is 3rd party debit card, which is how it works.

You will register with an online bank (recognized by PayPal) and then receive 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 USD 25.00 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 days with tracking
  • $40.00 shipping via UPS Express, receive in about three business days 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 responded 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.

  • Wait for card activation email
  • 3. Activate VMI Bank Account

    Once the account is activated, follow the following steps:

    1. Go to 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 your VMI bank account. It may take 3-4 days for the transfer to complete.
    5. The Withdrawing Moment

    Check your VMI Bank Account 2-3 days after the transfer from PayPal. If you transferred USD 300 from PayPal to the VMI bank account, you would notice a USD 2 charge (transaction fee). You will end up receiving USD 298. Also, note that you must have at least USD 10 in your account as a balance.

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

    I hope you get the picture here. I’m emphasizing this because every transaction (Balance Inquiry, Wrong Pin entered, Withdrawal, etc.) counts, and you will be charged for it. Here is a rundown 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 another currency and choose your local currency. This gives you an idea of how much you can withdraw. Say if you have $298 in your account and with $10 as a balance, you can withdraw USD 288 / RM 1010.
    2. Hit the nearest ATM and withdraw RM 1010 straight away. Remember: Balance inquiry online is free, and whatever you do on an ATM will charge.
    3. Before you run happily to the nearest ATM, remember the steps in the following images below. These are the actual images I took during one of my withdrawals.

    Look for the Cirrus Logo

    This site of the card up

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



    Confirm your amount, receive your cash

    Don’t fear the long content I’ve put up here. It isn’t as complicated as it looks. I make this so long because I won’t want to miss any small points that got you lost or stuck somewhere in the process. If you face 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 to try nor am I going to try them.