I am curious, how does paypal do the transfers to and from the bank via their site? I have seen no other site do this before and I am very puzzled as to how they do this. I want to start my own payment processor legitimately and this is definately one of the things I will need. Also, how can they afford it? If it is a simple wire transfer that costs a fee($20 at my bank). They must have a different way, but how?
Paypal is an official bank, with offices/legal representation worldwide. That's also the reason that they don't support all countries, if they don't have any legal representation there they can't support the country. To set a site up like they have try finding out how to set up a bank. Is going to cost you a small fortune to start up.
They do it via ACH in the US, internationally, they will send it to their offices in countries where they do business and then issue the payment through the local bank account payment gateways. It's not an easy thing to undertake...but anyone can do a Swift wire transfer internationally.
Paypal doesn't work like other payment processors and I believe they would work with each and every single country they support to integrate with their banking system in order to do the bank transfers so smoothly. In countries which it was unable to secure that option, other options such as checks and loading of Credit/Debit cards are supported. The cost of transfers and all related features are integrated in the fees which they charge.
Alfa, paypal is not a bank, saying that is completely incorrect. I have heard ACH but I don't think they have offices in every one of the countries they support. Alertpay is nearly international and there is no way ALertPay could afford to set up a center in each country.
Paypal does not have offices in every country they operate, however they do have regional HQs and offices which caters to a certain regions or countries. They however do work with the local banking system either directly or through an agent. They do not offer bank transfers to every single country. They only offers it to about 30ish countries only.
First they are very good friends with all the banks, and probably pay a much smaller fee than you have to. They just take the hit and recover it in fees most likely. Also, I'm pretty sure PayPal is a bank, my teachers was saying he has a savings (earns interest) from PayPal.
PayPal is not a bank. PayPal has a Money Market option (I use it) which earns interest which is similar to a savings account but different.
Well, maybe this would clarify the issue, see http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/05/15/cnpaypal15.xml https://www.paypal-media.com/releasedetail.cfm?ReleaseID=243295
Well, looks like I just found out how to send money to banks internationally. Thanks for the help though guys/gals. My processor will open within just a few weeks now.