The Freelance Pinoy's Guide to Online Payments

The Freelance Pinoy’s Guide to Online Payments

How to set up and withdraw payments from PayPal and oDesk Local Funds Transfer

By Stef Gonzaga, The Freelance Pinoy http://thefreelancepinoy.com

The Freelance Pinoy’s Guide to Online Payments by Stef Gonzaga, The Freelance Pinoy

Published in Manila, Philippines.

First edition, revised.

Disclaimer

The book and the information presented are for instructional purposes only. Neither The Freelance Pinoy nor the author is paid or affiliated in any way with PayPal Inc., oDesk.com, or the Philippine banks mentioned in the guide.

Screenshots, names, addresses, telephone numbers, and bank account numbers found in the book are fictitious and solely for illustration.

Table of Contents

Introduction 1

PayPal Verification: The Why and the How 2-10

From PayPal to Your Bank Account 11-16

Local Funds Transfer: Making oDesk Payments Super Easy 17-22

Local Funds Transfer: The Withdrawal Process 23-27

The Next Step 28

About The Freelance Pinoy 29

Introduction

One of the most common questions the TFP blog received since its launch in 2010 is how to set up payment options, particularly PayPal and oDesk’s Local Funds Transfer.

Many of those who asked are still new to freelancing, not as tech savvy, and are not familiar with the process of setting up these payment methods. This problem evidently posed as a hindrance for them—particularly oDesk contractors—because how then would they be able to receive payments from their clients?

I’ve put together this free PDF for freelancers and oDesk contractors entitled The Freelance Pinoy’s Guide to Online Payments. In it are step-by-step instructions, requirements, and up-to-date screenshots to show you exactly

• How to verify your PayPal account, • How to link your verified PayPal account to a bank account for easy withdrawals, and • How to set up Local Funds Transfer and withdraw your oDesk funds successfully to your bank account.

I hope that this guidebook will help answer and address your questions and concerns regarding these two payment methods, and will enable you to move forward and finally focus on what’s important: landing work, finding clients, and earning income as a freelancer.

Happy freelancing!

Stephanie “Stef” Gonzaga The Freelance Pinoy http://thefreelancepinoy.com/

1 PayPal Verification: The Why and the How

Creating a PayPal account is the easy first step. Just visit http://paypal.com/, provide the necessary information, and you’re done.

The roadblock is what comes afterwards—verifying your PayPal account. It is in this chapter that you will learn what PayPal verification is and how to verify your PayPal account.

The verification process is a set of key security checks that the user must comply to be able to send or withdraw money from PayPal.

For Philippine PayPal users, the verification process is required to withdraw your PayPal funds to either a Philippine bank account or your Visa® debit/credit card.1

An unverified PayPal account would have the “Unverified” status and a Sending and Withdrawal limit. If you complete the verification process, your account would then be labeled as Verified and your limits raised.

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 1 https://www.paypal.com/ph/cgi-bin/webscr?cmd=_show-limits&req_from=view_limits

2 To be clear, you can use your PayPal account even without undergoing verification. But to withdraw PayPal funds to your bank account, the verification process is a must. There’s no other way around it.

Here’s the good news though: it’s really an easy 5-step process, no technical knowledge required.

Once you’ve verified your PayPal account, you can receive and withdraw payments of different currencies to your Philippine bank account as many times as needed.

Requirements

Before you begin the verification process, you must have the following:

1. A registered PayPal account under the same name as that of your chosen Philippine bank account.

Example: If you opened a BPI Express Savings account under the name Jody Maria Mandaluyong, your PayPal account should be registered exactly under Jody Maria Mandaluyong.

Once you’ve registered a PayPal account, you will not be able to change your PayPal account name. You will have to request a name change to do so.

2. An active MasterCard or Visa® credit card or debit card.

Credit card – n. A plastic card issued by a bank, business, etc., for the purchase of goods or services on credit. 2

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2 http://goo.gl/lGbQh 3

BPI Express Credit BDO MasterCard Gold

Debit card – n. A plastic card that enables the holder to withdraw money or to have the cost of purchases charged directly to the holder's bank account.3 Tip: A tried-and-tested

alternative to a credit card is the According to PayPal, your can use an ATM BPI e-Prepaid MasterCard debit card provided that it has a Visa or (http://bpicards.com/Cards/Prepa 4 MasterCard logo on it. I’ve tried this a idDetails/37). It costs PhP 500 to couple of times with a BDO debit card, but apply, PhP500 to renew every to no avail. To be 100% sure that PayPal two years, and you don’t have to will accept your card, go for a credit card. present income-related documents to be qualified.

Unionbank EON Card, a popular debit card of choice.

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3 http://wordnetweb.princeton.edu/perl/webwn?s=debit%20card 4 Quoted from the Add a Credit or Debit Card page: “Debit Cards (also called check cards, ATM cards, or banking cards) are accepted if they have a Visa or MasterCard logo.” 4

Payoneer debit card exclusive for oDesk.com.

3. Your latest credit card statement or online access to your credit/debit account/s.

Example: For BPI credit card holders, they can enroll to BPI Express Online (http://bpiexpressonline.com/), an online banking system where all savings, current, credit, and even e-prepaid accounts can be viewed online.

Other banks with online access: BDO (https://www.clg.bdo.com.ph/en/) and Unionbank EON (http://goo.gl/c6vN3).

Again, make sure that you have all of the above to complete the PayPal verification process successfully. If you are not sure as to which credit card or debit card to apply for, contact your bank of choice for more information.

Tutorial

Here are the steps to successfully verify your PayPal account. For the sake of consistency, let’s use a credit card for the tutorial:

1. With your credit card on hand, log in to your PayPal account and hover your cursor over Profile. Select Add/Edit Credit Card.

2. Click on the gray Add a Card button.

3. Select the Card Type (e.g. Visa, MasterCard, American Express), enter your card number, the card’s Expiration Date, and the Card Verification Number, which is the last three digits printed on the back of your card.

4. Once you have added the credit card to your account, click on the Confirm My Card link to start the verification process.

***

Let’s stop here for a moment.

At this point, you’re about to initiate the PayPal verification process.

It basically requires confirmation that the credit or debit card you’ve added to your account is yours. Not your grandma’s, not some stranger’s credit card you found on the pavement, but yours alone.

To do this, PayPal will deduct PhP 100 (~USD 1.95) from your balance to generate the 4-digit code called the EXPUSE (Expanded Use) number. The EXPUSE number will be visible in your statement of account, which you will enter into the final verification form to complete the process.

If you have online access to your statement of account, the PayPal EXPUSE number would appear immediately or in a few hours. Once you are able to see the EXPUSE number, you can then continue with the verification process.

5. Retrieve the PayPal EXPUSE number from your credit card statement, or from your list of transactions viewable online.

7 A sample of a PayPal EXPUSE number displayed in a credit card statement.

6. Log in to your PayPal account and click on the Verify my Credit Card link located in the Notifications box on the right side of the PayPal Overview.

7. Enter your unique 4-digit EXPUSE number in the textbox under “Enter PayPal code (4 numbers).” These are the four numbers right after PP*.

Example: PP*4653

8. Click on the gold Confirm Card button and wait for PayPal to confirm that you are a verified PayPal member. You should see this very welcoming message if you’ve completed the verification process correctly.

Once you have reached the end of the verification process, PayPal will automatically refund the PhP 100 (~USD 1.95) to your PayPal account.

Congratulations! You are now verified—both sending and withdrawal limits lifted—and ready to continue on the next step.

Takeaway Tips:

• Use a Visa or MasterCard credit or debit card when verifying your PayPal account. A credit card is the more reliable option. • PayPal does not consider local ATM debit cards with only a Bancnet, Expressnet, or Cirrus logo as qualified debit cards. • PayPal deducts PhP 100 (~USD 1.95) to generate the 4-digit EXPUSE (Expanded Use) number. • The EXPUSE number will reflect in your next card statement of account. Depending on your bank of choice, you will either receive this as a printed copy in the mail or you can access it through your online banking system.

9 • Make sure to add a billing address to your PayPal account. Go to Profile » Add/Edit Street Address, add your billing address, and select it from the dropdown menu after adding your credit card or debit card details in the Add a Credit or Debit Card page. • If you lack PayPal funds, you can use your credit/debit card balance to pay for PayPal purchases and transactions.

10 From PayPal to Your Bank Account

Unless you plan on using PayPal funds for online purchases and transactions, the only way to have the money delivered to you in cash is to withdraw to a local bank account.

This process is called “linking” PayPal to a bank account, and in this chapter are the detailed requirements and instructions on how to do so. From there, you will be guided through the steps on how to actually withdraw your PayPal funds to your bank account.

Requirements

Below are the main requirements to successfully link and withdraw your PayPal funds to a local bank account.

1. A verified Paypal account. If you have not completed the verification process, visit the previous chapter “PayPal Verification: The Why and How.”

2. An active Philippine bank account. You should have in writing your exact bank account name and bank account number.

Bank Account Name Bank Account Number

3. Your bank’s unique bank code. This is also known as the BRSTN or Bank Routing Symbol Transit Number.

You can check for your bank’s BRSTN or bank code in the PayPal Bank Codes Master List on page [insert page number].

4. PayPal funds, ideally over PhP 7,000 to avoid the PhP 50 withdrawal fee for withdrawals PhP 6,999 and below.

As soon as you’ve completed the PayPal verification process and listed down the necessary bank details accurately, you can now link and withdraw your PayPal funds to your bank account.

Tutorial: Link PayPal to Your Bank Account

Let’s begin with the steps to linking your Philippine bank account to your PayPal account.

1. In Overview, hover your cursor over Profile. Click Add/Edit Bank Account.

2. In the Bank Account page, click on the gray Add button to add a new bank account.

3. When adding a bank account to PayPal, type the following information and click the gold Continue button:

a. Exact name used in your chosen bank account, b. The bank’s full name, c. The 9-digit bank code, and d. The correct bank account number.

13 ***

Let’s stop here for a moment.

There are several important things to take note of before proceeding with the withdrawal process.

Overlooking these instructions may lead to delays, failures, and return fees. The last thing any freelancer needs is a deduction from their PayPal funds due to carelessness.

• The name on your PayPal account must match the name on your bank account. • If the names don’t match, you can request for a change of name on your PayPal account. This will require identification documents and a waiting period of about 2-3 days (or longer). • When withdrawing funds of a different currency (e.g. US Dollars), PayPal will automatically convert the amount to Philippine pesos. • PayPal charges a PhP 250 return fee if the name of your PayPal account does not match that of your bank account.

All right. Let’s proceed with the last step.

4. Review your bank information. Click on the gold Save button once you’re done.

You can edit your bank account information by clicking on the gray Edit button.

At this point, you’re ready to withdraw your PayPal funds to your newly added bank account.

But before doing so, make sure that all your bank information—your bank account name, number, and bank code—are correct to avoid withdrawal failures and the PhP 250 return fee.

14 Tutorial: Withdraw Your PayPal Funds to Your Bank Account

Here are the steps to withdraw your PayPal funds to your Philippine bank account:

1. In Overview, click on the Withdraw link. Tip: To ensure that you receive your PayPal funds on time, check 2. You have two options: Withdraw funds out this list of 2012 bank holidays to your bank account or Withdraw both for the US and the funds to your card. Select the first Philippines: http://goo.gl/ylVzn option by clicking on the Withdraw funds to your bank account link.

Processing time and the costs to withdraw are displayed in a comprehensive table.

3. We’ve now arrived at the most interesting part of the tutorial. In the textbox provided, type in the amount you wish to withdraw to your bank account.

4. Check if the bank account selected is correct. If you are withdrawing foreign currency, you can use the PayPal currency converter tool to check how much you will receive in Philippine pesos.

15 5. Review all of the information displayed, most especially the bank information and the amount to be withdrawn. You can either edit the info by clicking on the gray Edit button, or proceed with the withdrawal by clicking on the gold Submit button.

Excellent! You’ve just made a withdrawal from PayPal to your Philippine bank account. All that’s left to do is to wait for the funds to reflect in your bank account.

Takeaway Tips:

• The name on your PayPal account must match the name on your bank account. • Check and double-check if the bank account information (i.e. bank account name and bank account number) provided is accurate. • PayPal deducts PhP 50 for withdrawals below PhP 7,000 and a PhP 250 return fee if the bank account details do not match what is registered in your PayPal account. • Processing time for PayPal to bank account withdrawals take 2-4 working days. • Take note of the bank holidays (both the US and the Philippines) as this could cause delays when processing your withdrawal. • Use the PayPal currency converter tool to check how much will be deposited to your bank in Philippine peso and if the amount exceeds PhP 7,000. • When typing a 4-digit amount to withdraw from PayPal, do not include the comma. Example: PhP 4500 or PhP 3200.50 • If there seems to be a delay with your withdrawal, do not panic. Give it a couple of days more before seeking assistance from customer support.

For problems wth your PayPal account, you can turn to PayPal’s Help section (https://www.paypal.com/ph/cgi-bin/helpweb?cmd=_help) or the Contact Us page to reach out to a customer service representative via email or phone (https://www.paypal.com/ph/cgi-bin/helpscr?cmd=_help&t=escalateTab).

16 Local Funds Transfer: Making oDesk Payments Super Easy

April 2011 — The new and long-awaited withdrawal method finally opened its doors to Philippine oDesk contractors nationwide.

Dubbed as “oDesk Local Funds Transfer,” this withdrawal method offers a quick, convenient, and cost-effective means of withdrawing funds from one’s oDesk account to a Philippine bank account.

Local Funds Transfer has several benefits over older oDesk payment methods, namely PayPal, Payoneer, and Skrill (then Moneybookers). Its main highlights are:

• Cost-effective – oDesk LFT costs only $0.99 to withdraw. PayPal and Skrill charge $1 while Payoneer charges $2 per withdrawal—excluding activation and maintenance fees. • Fast processing – it only takes 2-3 business/banking days to have your funds deposited to your bank account • Direct deposits – oDesk funds are immediately deposited to your bank account in Philippine currency. There is no third-party vendor (e.g. PayPal) involved in processing and depositing payments. • Customer support – oDesk will always provide technical assistance whenever you encounter problems or issues with LFT transactions.

If you are a new oDesk contractor, it’s highly recommended to set up Local Funds Transfer as an additional payment method. In the likelihood that one of your payment methods can’t be used, you have LFT as your backup withdrawal option.

In this chapter, you will be guided through the step-by-step process of how to set-up and withdraw your oDesk funds to your bank account via Local Funds Transfer.

Requirements

Before going into the tutorials, you must have the following requirements:

1. Your bank account details, which must match your oDesk account details. This includes the following: a. Name b. Street address c. City and state/province d. Country e. Phone number f. Bank account number.

Example:

CONTRACTOR INFO BANK oDESK NAME Tina R. Fernandez Tina R. Fernandez STREET ADDRESS 2120 Taft Avenue 2120 Taft Avenue Malate, Malate CITY & PROVINCE Manila, NCR Manila, NCR COUNTRY Philippines Philippines PHONE (02) 5110000 +63 (02) 5110000 BANK ACCOUNT # 1418123456 1418123456

2. The correct BRSTN or Bank Routing Symbol Transit Number code of your bank of choice. You can find a full list of BRSTN codes in this section of oDesk’s Help Center, or refer to the list of BRSTN codes in page [#].

If in case both your bank and oDesk account information don’t match, you can edit your oDesk account information to match that of your bank account, since you have immediate access and can apply the necessary changes anytime.

18 Tutorial: Linking oDesk Local Funds Transfer to Your Bank Account

You’re now ready to link your bank account to oDesk Local Funds Transfer. Here are the steps on how to do so:

1. Log in to your oDesk account and click on the Wallet tab.

2. On the right is a box where your registered withdrawal methods are displayed. Click the Add a withdrawal method link.

3. A large box will appear on screen with the available withdrawal options. Under Recommended in Philippines is the Local Funds Transfer (PHP) option. Click on the gray Set Up button. You may be prompted to enter your oDesk account password before proceeding.

4. In the Add Withdrawal Method: Local Funds Transfer page, the first step is to enter your bank’s BRSTN code. Once done, click on the gold “go” button.

You will know if the BRSTN code is correct if oDesk is able to locate your bank and the next two sections of the LFT registration process appear right after.

If you opened an account under a subsidiary bank, use the main office’s BRSTN code. Example: If you opened an account at BPI Family Savings, use Bank of the Philippine Island’s BRSTN code (010040018).

5. Under the Bank Account Information section, enter your bank account number. oDesk suggests checking your bank statement or paper checks in locating your account number.

Other ways to locate your bank account number:

• A passbook. • Some banks would provide a pamphlet printed with your account number and temporary PIN code after opening a new deposit/savings account. • If your bank offers an online banking system where you have 24/7 access to your bank accounts, you will be able to see your bank account number upon successful log-in. 20 • You can call your bank’s customer service hotline or email your bank’s online support system for assistance in locating your bank account number.

6. Enter your complete bank account information. Again, oDesk requires that the name, address, phone number, etc. must be exactly as it appears in your bank account.

To be extra sure that you’re typing the correct info, you can click on the blue “account info” link below the Name field. This will take you to your oDesk user account where you can copy, check, and re-check your account information before proceeding to the next step.

7. Finally, tick the checkbox to “attest that [you] are the owner and have full authorization to the bank account” being registered and linked to oDesk Local Funds Transfer. Click on the gold “Review Details…” button.

8. Another pop-up window will appear on screen where you will see all of the details provided earlier. Give it one last review before adding it as a withdrawal method. Once you’re 100% that everything is accurate, click on the gold “Add Withdrawal Method” button.

And there you have it. You’ve successfully registered oDesk LFT as a withdrawal method and linked it to your chosen bank account.

Takeaway Tips:

• Your oDesk Local Funds Transfer information must match that of your bank account. The name and street address are the most important and must appear exactly as what is in your bank account record. • To ensure that you enter the correct information, use your oDesk account holder information as your guide. • If your bank and oDesk account information don’t match, the quicker solution is to edit your oDesk account info to match that of your bank’s. • Use the main branch’s BRSTN code when setting up oDesk LFT. Subsidiaries and branches (e.g. BPI Family Savings) all use the head office’s (e.g. Bank of the Philippine Islands) BRSTN code. • Weekends and holidays do not count as business days, so expect a longer processing period if you’ve initiated a withdrawal on these days. • Once you’ve finished registering for LFT, you can immediately initiate a withdrawal. Unlike PayPal, there is no activation period.

22 Local Funds Transfer: The Withdrawal Process

You are now just one step away from receiving your oDesk funds—the fruits of your labor—via Local Funds Transfer (PHP).

But before going into the tutorial, let’s get to know LFT a little bit more.

1. oDesk + BPI = Savings from Withdrawal Fees During its beta stage and up to its finalization, oDesk is able to partner with Bank of the Philippine Islands (BPI) in order to make LFT withdrawals free of any remittance charges and bank fees.

BPI users can therefore receive their payments in full with only a $0.99 oDesk withdrawal fee at their expense. To top it off, oDesk waives the $0.99 withdrawal fee for contractors about to make their first LFT withdrawals.

2. Currency Conversion oDesk uses its own currency conversion system to determine how much you will receive after processing your LFT withdrawals . oDesk displays the latest exchange rate (e.g. USD to PHP) based on the UTC+0 timezone. This is not however the final rate that will be used when converting your oDesk funds. Once oDesk processes your withdrawal, it will use the exchange rate for the next business day.

As you can see from the screenshot above, the exchange rate is at PHP 40.9031 as of September 28, 2012 12:00 UTC. The actual exchange rate will be set on the next business day.

Once you’ve completed the withdrawal process, oDesk will email you two things:

a. Confirmation that your LFT withdrawal is completed. b. A detailed overview of how much was withdrawn, when it will reflect in your bank account, and the exchange rate applied to the withdrawal.

From there, all that’s left is to wait for your funds to be deposited to your bank account. If you’ve completed all of the steps in the previous chapter, you should expect the money to arrive in 2-3 banking days.

Requirements

These are the two main requirements for a successful oDesk LFT withdrawal:

1. 100% accurate bank account information, particularly the name, address, and bank account number.

24 2. Local Funds Transfer (PHP) linked to your bank account and registered on your oDesk account.

Tutorial

Let’s now initiate an oDesk withdrawal via Local Funds Transfer.

1. Log in to your oDesk account and click on the Wallet tab. You will automatically be directed to the Withdraw Earnings page.

2. With enough money in your balance (displayed in large font and in green), click on the gold Withdraw button. You may be prompted to re-enter your oDesk account password.

3. Select the Local Funds Transfer option by clicking on the Withdrawal method dropdown menu. LFT is displayed as your bank’s name followed by the last four digits of your bank account number.

4. Choose whether to withdraw your available balance/the entire balance or a specific amount only. The total amount to be withdrawn (after deducting the $0.99 withdrawal fee) will be displayed below.

5. Click on the gold Withdraw button to complete the LFT withdrawal.

That’s all there is to it. You can now sit back and wait for your funds to be deposited.

If you initiated the withdrawal during a weekend or a bank holiday, processing may take longer. Based on past experience and that of other oDesk contractors, the longest it can go is up to 5 days.

Takeaway Tips:

• Contractors can link any Philippine bank account to Local Funds Transfer. • Some banks (i.e. BPI) do not charge an extra fee when receiving funds from oDesk, while others (i.e. BDO) charge as much as P200 per transaction. • Always make sure that the information provided while setting up Local Funds Transfer is exactly as how it appears in your bank account records. Your name, street address, and bank account number are the most important and must be 100% accurate. • Because the information must be accurate, do not use your friend’s or family member’s bank account to use LFT. • Since LFT is an oDesk feature, you can seek help from oDesk customer support in case there are problems, delays (despite entering correct info), or issues with the payment method. • To receive your oDesk funds within the week, the best times to withdraw are from Monday morning to Wednesday 12nn. Withdrawals made on Thursdays and Fridays usually result to funds deposited the week after (usually Mondays or Tuesdays).

26 • Take note of bank holidays (both of the US and the Philippines) as these may cause delays for your LFT transactions.

Lastly, once you receive your funds in your bank account, treat yourself out for a job well done.

Take your spouse and kids out to dinner. Watch a movie with friends. And of course, if you’re aiming for something bigger and long-term, save your hard earned money for whatever plans you have for yourself.

27 The Next Step

You’ve now successfully set up two payment methods for your freelance business. Where do you go from here?

For starters, give yourself a pat on the shoulder. You’ve just made receiving and sending payments and funds possible. With that, you finally focus on more important things: finding work, landing work, marketing, communicating with clients, and building your freelance business for success.

I hope this guidebook has helped set aside the technical side of setting up your payment methods and enabled you to focus more on building and growing your freelancing career.

If you have further questions, suggestions, or feedback regarding the content of this book, feel free to email me at http://thefreelancepinoy.com/contact/. I’d be happy to answer or address questions and concerns that the book may have overlooked.

Thank you for taking the time to download and read The Freelance Pinoy’s Guide to Setting Up and Withdrawing from PayPal and oDesk Local Funds Transfer. You’ve taken one step further towards a successful future as a Pinoy solo professional.

Keep up the good work.

28 About The Freelance Pinoy

The Freelance Pinoy is the go-to source of freelancing tips, advice, and best practices for Pinoy solo professionals of all experience levels.

The blog aims to help Filipino freelancers become the best in the freelancing industry by promoting excellence, trust, value in every aspect of running a freelance business and in building a successful freelancing career.

The Freelance Pinoy is founded and cared for by freelance web/product copywriter and blogger, Stephanie “Stef” Gonzaga.

Writing professionally for four consecutive years, Stef writes engaging and compelling website content for a living. Some of her pieces are published in several popular blogs, including Freelance Folder, FreelanceSwitch, TaskArmy and the official oDesk blog where she worked for 11 months.

Stef currently lives in Manila with her husband and two children. She’s working towards completing a bachelor’s degree in Literature, publishing her first poetry collection, and producing more useful content for both her readers and clients.

You can visit and connect with Stef through the following channels:

• Website – http://stefgonzaga.com/ • Twitter – @stefgonzaga • Email – [email protected]