Withdraws from Paypal for Malaysian: VMI and its cost

I’ve been asked quite number of times even after I’ve shown how we can withdraw from PayPal via VMI. Questions varies but most of them sounds like the following:

  • 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  • Have I really withdrawn before and how much?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.


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.