Bitcoin Forum

Hello Community,
 
As of today, you can fund your PayPal account with Bitcoins.

This service has been long-needed in Bitcoin World and now anyone holding Bitcoins can immediately get them converted to USD and placed in their PayPal account.
http://files.softicons.com/download/business-icons/credit-card-icons-by-iconshock/png/256/paypal.png

Step 1) Sell your coins at Gox, BitStamp, BTC-E, or Crypto, and withdraw a USD coupon.
 
Step 2) Visit BitInstant.com, select Coupon as the "Pay from" and PayPal as the "Pay to"
 
Step 3)  Fill out the account info, complete the process, and voila!
 
Orders are processed by our partner Virtual World Services GmbH and the Paypal funds will arrive from them. There is a 6% total fee for the service, which includes the PayPal fee.
 
Note: Our system will automatically flag a first-time withdrawal for a quick manual review. We check to see if the PayPal address is blacklisted, fraud, or mistyped. Usually, this can range from a few minutes to 12 hours (possibly longer on weekends). On subsequent withdrawals to PayPal, no manual review is needed and funds will appear within a few minutes.

For most transfers, the fee is 6% including Paypal fees. We've partnered up with Virtual World Services GmbH in order to make this possible, since they have a virtual currency approved account with Paypal. The Paypal and middleman fees we are required to pay per transfer are over 4.5%, for this reason we charge 6%.
 
Fast and easy Bitcoin payments to PayPal! Give it a try!

-The BitInstant Team

Thanks. I don't understand withdrawal process for international transfer and I am afraid. I am still afraid of paypal but thanks for letting me risk my money.

Why the multiple threads?

People tend to think that by posting on the "Bitcoin Discussion" board will get them more views.

A better option has arisen for me in the meantime (lower fees), but still, I am dang glad you are offering this!  It's about time someone did!

Yup, we understand this is a more 'premium' service, for those needing to cash out quickly and small amounts.

We're working on much cheaper withdrawal options, however we figured since everyone is having withdrawal issues we'd launch this ASAP

-Charlie


Sorry, I didnt realize I made 2 threads. Feel free to delete the other one.

I can't delete it. Also, it's the other one that is posted on the correct board. :)

As far as I know Paypal charges fees on receiving end.

You've mentioned that part of 6% is paypal's fee, does that mean paypal's receiving account will not pay any additional paypal fee  on their end?  And if so could you please point to paypal's terms where they explain charging fees on sender's side instead of receiving and who is eligible for it. Thanks.

I know of a case where the sender pays the fees. It's called "Mass Pay". Maybe that's what they're using.

oh yeah, i forgot about mass pay function. hopefully Virtual World Services GmbH won't be sending single transactions through mass pay feature - else that would be quickly limited by paypal, i know it from first hand experience ))  on the other hand it looks like transactions will be processed almost instantly, which i'm not sure how they could utilize mass pay in this case unless they have multiple transactions going at any given moment in time - even then, paypal could potentially limit it to once a day  if they feel mass pay is being abused

This new service is a welcome addition to the community.

You guys are on fire with what you are doing for btc, I doubt if I will need this service but I bet there are many who will. The more options the better methinks, I hope you can get some services in Australia sometime too.

another question
what will receiving account in paypal be seeing on transaction's label/description? will there be any mention of word 'bitcoin'?

Sounds like a good service.  Good luck!

Are there any plans to automate this step in the future and just let people give you the Bitcoins directly?

Wow!! Congratulations and good job finding an approved partner! Would it be allowed to use this service to say, pay other people? Or only to fund ones own paypal account?

I think this service will be useful for many, especially if you can lower that fee.

Good questions all around!


Sure, we are using Mass Pay, however since the Paypal account is a European one Paypal charges 2% on this transaction


Yes, we're planning on integrating with Paysius so we can accept Bitcoin directly.


The funds will come from 'Virtual World Services GmbH'.
They have been using Paypal for withdrawals for over 5 years, and they are (as far as our research tells us) the only approved virtual currency account.

So the 6% is all inclusive of fees? Just want to be sure, I give a BTC-E USD code
for $100 and I will receive net $96.00 in my PayPal account?

"Virtual World Services GmbH" is going to be rich as fuck pretty soon, if they aren't already. At least until PayPal boots them out.

Let's bet: How long until they are forced to cease operations that are even slightly Bitcoin related? I give them 4 months, tops.

Last I checked 6% of $100 was $6, so I'd expect $94.

Thank you soooo much for this!  ;D

I agree, even though PayPal assumes no risk, they will still bully baby Bitcoin. When Bitcoin grows up, he will remember who the bullies are.

$94.00 in your Paypal account

last i've checked PP's terms and UA about month ago there were no mention of "virtual currencies" but they do prohibit currency exchange services utilizing their network

The best measure of end-to-end fees would be to start with $100 cash and an empty PayPal account, convert the cash to bitcoins, sell the bitcoins, deposit the result in a PayPal account, use a PayPal debit card to withdraw the money from an ATM and see how much cash you end up with at the end. (assume a theoretical ATM that could produce exact change)

Thanks for the prompt response. nice math fail eh?  ;D

Well … don't know official policies but for tis long awaited feature it's the right board. Move it else where in a week.

You did it again. Awesome! Is there such a thing as too many good news?

I for one second this. Spendbitcoins.com is good but their 10% fee almost kills any incentive to buy Bitcoins in the first place. A 4-6% fee would be far more attractive, and if there were a variety of services competing in AU, I'd be practically throwing money at them to get Bitcoins to buy stuff :) .

We'll be testing that soon... many exciting things still in the pipeline ;)

Long awaited feature that Tangible Cryptography have available for at least 2 months and that Spendbitcoins.com have available for more than 6 months? Is that what you're talking about? Doesn't seem the slightest bit innovative to me.

https://bitcointalk.org/index.php?topic=90240.0
https://bitcointalk.org/index.php?topic=54896.0

Also, this is my personal opinion, take as you wish.
Bitinstant is NOT bitcoin. Their service is NOT a long awaited feature as it clearly existed long before.
Their PR is better? Probably, but maybe that is because they are posting their threads in the wrong place.

I don't use paypal but read of difficulties with bitcoin-paypal all the time here. If this is old news why did nobody put this feature in context? what is better? what is worse?

I was using bitinstant to fund paypal months ago. For a lower fee as well. You transfer from your exchange to virwox (0.89% fee from bit instant. 1% btc deposit fee from virwox) Then just withdrawl from virwox to paypal (2% fee+ 1 USD) for a total of 4.89% in fees on $100. If you withdrawl more than $100 the fee is less because the dollar is fixed. Why would anyone do it this way for 6%? I guess it could be handy for really small deposits. Maybe there is an amount that will work out to have greater than 6% fee if the withdrawl is small enough. You should add a volume discount. The 6% is just insulting to those who use the same service from the same company for an average of 2% less.

Not sure if you remember this, but our accounts were shut down and over 20k frozen. In order to get this back, we have to pay a middleman. I understand its a premium service, and there are always other options for you to use.


There is no need to hate on us PSY.

We are providing a service to our customers because they trust our A+ reputation and everything we do for Bitcoin.

If you don't like it, you could leave.

'Bitinstant is NOT bitcoin' - Thats just insulting. We've spent thousands of dollars on Bitcoin sponsorships at events around the world, got Bitcoin more press than ever, and saved everyone when TradeHill went down. We're one of the largest Bitcoin companies by volume and are on the front lines of Bitcoin advocacy. We give jobs to over 10+ people who can put food on their tables. We love what we do.

What do you do for Bitcoin?

Psy - TBH, I didn't even know there was a way to withdraw to Paypal prior, and I try to know everything in Bitcoinland.

If BitInstant's not the only ones offering it, then fine, though I do believe BitInstant is still offering something unique here, for you can send to Paypal from any of BitInstants source methods (MtGox/Btc-E/Crypto/BitStamp codes, Liberty Reserve, Dwolla, etc), and the other services do not permit this.

In any case, surely its better for more services to offer more options, no? And to calm your antagonism a bit, I promise the next major announcement BitInstant makes has not been replicated by anyone else ;)

I use them: every day! Good enough for you?

Also, I use Bitcoin to avoid fee suckers, not to have 2 more sucking money out of me, so, your suggestion of not using your service is superfluous.

Before someone else starts talking about "calming my antagonism", read this: http://www.nytimes.com/2007/10/07/jobs/07pre.html?_r=1
"My antagonism" only exists in your head, ok?

So BitInstant should offer exchanges for 0%? BitCoin is not exclusive for uncommercial services.
Exchange serives require a lot work/risk and these people deserve to get paid for their input.
It is something different to spend a few hours daily on Bitcointalk or OTC than working a whole day to keep a service running.

For BTC->Paypal, spendbitcoins.com is unbeatable.  However, I agree Bitinstant's offering is unique since you can fund it with more than just BTC.

With the PayPal credit card this is close to the point of being able to keep all of your money in Bitcoins then transfer it to the card when needed.

A good step, but the fees will keep it in the realm of a niche market.

I understand that PayPal fees suck, which is why Bitcoin is necessary. Hopefully the time will come when transfers will be cheap and quick.

Service works, without a hitch.

Update:

Some orders are having fees incorrectly calculated and are being shorted as a result, if you have had such an order then please PM me here with your QuoteID so the extra money owed can be sent to you

Technically they can close your account because it's a tuesday if they feel like it, the question is whether they will and I believe with the current setup end users are not at any risk of this - after all, we aren't going to start demanding refunds for all payments sent out.

Hey,

I don't understand how I make this work.
I have a Gox usd coupon.
I go to BitInstant and choose pay from MtGox Coupon and to Paypal.
Now I can only enter the paypal address, amount and email.
Where do I enter my coupon?

probably on the next page

Well, that what I expected, but I press "send funds" and nothing happens..  ???

Why amount did you enter? Make sure its not above $500 and only 2 decimal points. like 450.01

Oh yeah, I first entered 92.67168.. Now I understand!
Thanks! Got the money! :)