Yes they can withdraw but you can not fund your paypal account from a local bank account in NZ. Its the same for many countries, the only option to fund your paypal is by credit card, not a local bank account.
From NZ? I dont know of any, there may be a few that will let you fund by T/T transfer, but I doubt there are any that will let you fund from a local accoutn with next to no fees. Majority use C/C to fund accounts.
Hopefully NZ will catch up to Canada soon. For a while, we could only withdraw from PP to a bank account. And when making a PP purchase we were only able to draw on a cc if the account needed funded. Now, while we still cant manually "fund" the PP acount from the bank account, we can have the PP transaction take funds directly from the bank account if it runs short in a transaction.
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