Annoyed with refund from US$ to Australian Dollars.

[tulip*place]

Purchased an item early August from the United States.  Paid US$15.00. Paypal conversion then to Australian Dollars $24.90.

Item has arrived but there was an issue with it and seller has agreed to refund US$15.00.  I was hoping the amount in Australian Dollars for the refund would be close to the $24.90 that was paid a few weeks ago.  Somewhere $4.07 has been lost and the refund is A$20.83.   This seems a bit greedy by Paypal.

[*tippy*toes*]

PayPal has very little to do with currency conversion rates. They can only convert to what the current exchange rate is. One of the risks you take when buying from overseas is the fluctuating currency rates. What would you have done if it went the other way and you got $28 back instead of $24 because the rates had changed in that direction? That can and does happen.

You paid $US15 for the item. The seller refunded $US15 for the item. Obviously in that time, the exchange rate had altered. Not PayPal's doing. 

[11dustyattic]

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@*tippy*toes* wrote:

PayPal has very little to do with currency conversion rates. They can only convert to what the current exchange rate is. One of the risks you take when buying from overseas is the fluctuating currency rates. What would you have done if it went the other way and you got $28 back instead of $24 because the rates had changed in that direction? That can and does happen.

You paid $US15 for the item. The seller refunded $US15 for the item. Obviously in that time, the exchange rate had altered. Not PayPal's doing. 

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We wouldn't be having this conversation 😉

[11dustyattic]

So you want a free item and a good exchange rate? Damn 😂

[tulip*place]

Will be thinking seriously buying from overseas in future,  The cost of the item was $15 us plus  with the shipping, import charges and gst the item cost over $90 Australian.  

[11dustyattic]

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@tulip*place wrote:

Will be thinking seriously buying from overseas in future,  The cost of the item was $15 us plus  with the shipping, import charges and gst the item cost over $90 Australian.  

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What was the item?

[hunter4752001]

I've just had the same experience. eBay's Global Shipping Program has declined to ship an item because "we have set-up our policy and leather is part of them as leather have came from animals."

Paypal, eBay subsidary, have refunded the US$ purchase price but the exchange rate calculations means I get approx AUD $6 less than I paid. And no, the rates are not beyond their control. Companies like Paypal access the wholesale exchange rate but charge on the retail rate (in fact looks like even greater than the retail rate). Meaning they get a very nice margin on the transaction, all for providing no service.

[michellebartley]

What's the issue with the item?

[lyndal1838]

In the past refunds used to be processed at the same rate as the original transaction if it is within (I think, 6 weeks)....not sure when it changed or if indeed it has changed.

I am inclined to think that this discrepancy has come about because paypal no longer refunds their fees.

[tazzieterror]

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@lyndal1838 wrote:

In the past refunds used to be processed at the same rate as the original transaction if it is within (I think, 6 weeks)....not sure when it changed or if indeed it has changed.

...

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If that's the case it must have been quite a while ago, as I'm pretty sure I recall a purchase I made from a HK seller around 2007 or 2008 where I lost about $60 due to exchange rate differences between purchase and refund (the purchase total was a little over $2000).