This work investigates the possibility to form catalytically active bimetallic Pd-Ag nanoparticles synthesized in the water pools of a reversed microemulsion using methanol, a more environmental- and user-friendly reductant compared to hydrazine or sodium borohydride, which are commonly used for this type of synthesis. The nanoparticles were characterized with regards to crystallinity and size by X-ray diffraction and transmission electron microscopy. CO chemisorption and oxidation followed by in situ diffuse reflectance infrared Fourier transform spectroscopy (DRIFTS) was used for investigating the elemental composition of the surface and catalytic activity, respectively. Moreover, the structural composition of the bimetallic particles was determined by scanning transmission electron microscopy coupled with energy-dispersive X-ray spectroscopy. The particles were shown to be crystalline nanoalloys of around 5-12 nm. CO adsorption followed by in situ DRIFTS suggests that the particle surfaces are composed of the same Pd-Ag ratios as the entire particles, regardless of elemental ratio (i.e., no core-shell structures can be detected). This is also shown by numerical simulations using a Monte Carlo based model. Furthermore, CO oxidation confirms that the synthesized particles are catalytically active.