Hi guys,

I have a few hundred bucks in my paypal. Was planning to sell here to convert to cash like others. Now that the plan is an epic fail i was thinking to cash in at local bank.

I haven't opened any bank accounts yet, so is it possible to move the paypal fund to a bank and if can what bank should i use? M2U / CIMB etc? rate

If you accepting Malaysian Ringgit you will get some charges for

3.9% + RM2 for cross border transaction.
3.4% + RM2 for domestic tranaction.

But if you accepting like USD
3.9% + 2.5%/2% + RM2 for cross border transation+ PayPal conversion rate + cash out.

Wow!

You will get less money in MYR if you accepting USD. All the while I thought is good to accept in USD but in the end doing oversea business I make less money. If you own a Malaysia issued credit card if you buying stuff from oversea paying in their currency bank will use Visa, Master or AMex their own rate of charge. Some overseas seller learned it in hard way, now they try to use their own country currency.

The above rate is correct if you accepting MYR 3.9% + RM2 for cross border transaction. 
If you accepting USD it will be 3.9%+2% or +2.5% + RM2 for cross border transaction.   

Let's going in math way.

For example fix the rate at 3.5 for now, I know is not real but you may refer the rates according to PayPal.

That fellow pay you USD1K.
When you have received the money paypal will get 3.9% off from USD1K
1,000
0.961 ×
--------------------------
961 =
You will get USD961 in your book account, you want to get your money out in USD if you live in US. You will get USD961. Nice isn't it?
The reality is you are living in Malaysia and your bank is in Malaysia. You want to cash out in MYR. Now you are USD961.
Let's assume is 2% rate.
961
0.98 ×
--------------------------
941.78 =

3.5 ×
--------------------------
3,296.23 =

2 -
--------------------------
3,294.23 =

You will get RM3294.23 in cold hard cash after the RM2 processing fees. What if 2.5% rate?
961
0.975 ×
--------------------------
936.975 =

3.5 ×
--------------------------
3,279.4125 =

2 -
--------------------------
3,277.41 =

You will get RM3277.41.

The next possible scenario is both of you make a deal to trade in MYR.
3,500
0.961 ×
--------------------------
3,363.5 =

2 -
--------------------------
3,361.5 =

That is what you are expecting in MYR 3361.50.
If you want to make MYR3500 firm, then add the 3.9% to the amount or you may add up RM2 for cash out fees if you want.
3,500
1.039 ×
--------------------------
3,636.5 =

2 +
--------------------------
3,638.5 =

This is the amount he/she should pays to you. You will receive MYR 3500 intact without loosing a single cent.

*Fix me if I am wrong*