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Community Member
Posts: 1
Registered: ‎03-02-2010

EBAY PAYPAL CONVERSION RATES

PayPal is skimming 6-7% of USD conversion rates. Of course, they do not show the rates until you have committed to the transaction, so its to late to change your mind.

Sellers requiring PayPal should bear in mind that their insisting on PayPal add 5% or more to a purchasers cost. No doubt PayPal is adding their fees and maybe conversions rates to the Seller.

And you thought the banks were bad.
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digital*ghost
Community Member
Posts: 6,043
Registered: ‎05-25-2010

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
Last time I made a US purchase, the difference was about 1%, give or take. That was over a month ago but if PayPal decided to instigate a higher percentage for currency conversion, I'd be surprised it went unannounced. ?:smileyindifferent:

By the by, though, I have always been shown the exact amount that will be deducted from my account before I confirm payment. Plus I kinda figure if I'm on eBay and at the point where I'm about to pay for my purchase, it's already too late to change my mind about it. :8} :-p
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putney32
Community Member
Posts: 5,107
Registered: ‎01-02-2006

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
the 'conversion rate' you see on tv is the MID RATE.
I.E. it is the average of the buying and selling rates.


so.. if you go to any bank or Bureau d'Exchange you will see various rates quoted

1. the BUY rate, thats what they give you to buy foreign currency you may have
2. the SELL rate, thats what they charge you to sell you some foreign currency
3. the MID RATE, THAT is the average of the above two and is what is generally used as a rule-of-thumb to work out different currencies.

what PayPal charge you is the SELL rate (and it also factors in their exchange charges)... something the Banks usually add on after they have done the conversion and charge separately.


so no, PayPal is not skimming money, they are SELLING you a foreign currency, at their SELL RATE.

(THERE is no ACCURATE currency rate by law, the buy / sell currency rates often change 2-3-4- times a day at banks).
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phorum_junkie*
Community Member
Posts: 7,028
Registered: ‎11-01-2006

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
There will almost always be a disparity between the approximate price given on the ebay site and the actual rate charged by Paypal.

The ebay conversion clearly states it is an estimate and it does not change several times a day as does the realo exchange rate.

You do not have to allow Paypal to do the currency conversion for you unless you are paying with existing funds. You have the option to let your banki do the conversion instead.

I don't know anyone who has tried this more than once though as most banks give a worse rate than Paypal and then charge you an extra fee on top!
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Community Member
Posts: 5
Registered: ‎07-10-2011

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
I agree with you helmutk9999.. Well there's too many excuses flying about. The bottom line is, well, you agree to a price before you pay it. I was worried, really worried, when I saw the total cost jump up by $15 after I committed to the purchase. That puchase price I agreed to was displayed on Ebay! not PayPal. Corporate Greed.... there you have it.
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lyndal1838
Community Member
Posts: 8,759
Registered: ‎07-23-2006

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
I have been letting paypal do all my conversions for years now....ever since I did the experiment of paying some invoices via paypal and some via my credit card rates.
Paypal is by far the best.
I have no idea where you get your figures from but in the last week I have paid a number of US invoices. I will detail the results

9/11/11 US$74.45 converted to AU$74.00
10/11/11 US$24.38 = AU$24.56
13/11/11 US$16.32 = AU$16.29
US$14.99 = AU$14.96
1411/11 US$14.43 = AU$14.40

All small amounts, but the same rules apply to larger amounts.
All those figures are exactly what has come out of my bank account with no extra fees as would be charged by my bank.
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phorum_junkie*
Community Member
Posts: 7,028
Registered: ‎11-01-2006

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
heather2work this thread is ancient, the OP as almost certainly found out by now that it is more cost effective to let Paypal do the conversion instead of their bank but if you think Paypal is all about corporate greed next time you go to make a payment in a different currency select the option to let your bank do the conversion but please do not come back here complaining that the exchange rate was worse and the bank charged you a fee on top.
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Community Member
Posts: 162
Registered: ‎10-04-2005

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
actually this is a recent thing, today I bought US$8.09 worth and got charged AU$8.20 which I know is a pathetic amount to bitch about but it's still wrong as the aus dollar is still slightly higher than US.
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punch*drunk
Community Member
Posts: 3,146
Registered: ‎06-21-2007

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
My bank/credit card conversion rate is always better than paypals.
punch
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Community Member
Posts: 162
Registered: ‎10-04-2005

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
punch does that include the fee for overseas buying?
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punch*drunk
Community Member
Posts: 3,146
Registered: ‎06-21-2007

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
punch does that include the fee for overseas buying?



Yep :-)

I did a little research on it earlier this year. I noted the paypal conversion rate and then paid with my credit card. 4 or 5 transactions and I think I saved about $30 all up.
punch
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punch*drunk
Community Member
Posts: 3,146
Registered: ‎06-21-2007

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
I did the same test a few years ago when the dollar was low and had the same result, although I only saved a few cents then on a lower value transaction.
punch
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phorum_junkie*
Community Member
Posts: 7,028
Registered: ‎11-01-2006

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
I'd love to know which bank, I have tried it with ANZ and Suncorp as well as 2 UK bank accounts and it cost more. The only way I can get close to the same value as Paypal is to use one of my UK credit cards that does not have any charges for using it overseas.

I actually use Paypal to transfer money between my UK and Au bank accounts as it is cheaper than a CHAPS transfer.
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punch*drunk
Community Member
Posts: 3,146
Registered: ‎06-21-2007

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
ANZ Visa.

I nearly started a thread about it at the time, and I wish I had now because it has been brought up a few times.

I wrote down the amount paypal were going to charge me, then paid by visa and compared the amounts. In every case, the visa was cheaper. It showed on the statement as 2 separate charges, the sale amount and the conversion fee. But added together, the credit card was still cheaper.

Next time I buy from the US, I will do the same checks and post the results.

Who knows, maybe it was just luck and the dollar fluctuated upwards the day the visa processed the charge, maybe when others have done it, its fluctuated down. But so far, I have 100% success at saving money using visa over paypal.
punch
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cq_tech
Community Member
Posts: 6,691
Registered: ‎04-01-2007

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
Well I'm with PJ here inasmuch as Paypal has always been marginally less expensive than my banks' exchange rates (I'm with CBA & Suncorp & have tried both).

Sure, the actual exchange rate might be better with the banks, but they then add 2.5% as their commission to the total and this generally brings the final amount to slightly in excess of what Paypal was charging at the same time.

This very subject was discussed some months ago when it was shown that it was best to allow Paypal to perform the exchange and I can assure you that nothing has changed since then.
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lyndal1838
Community Member
Posts: 8,759
Registered: ‎07-23-2006

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
You can add Westpac and St George to that list too.
I have always found them to be more expensive than paypal. In my experience there is only a very marginal difference in the exchange rates, but the banks charge slightly higher fees, and for the most part now charge a Cross Border Transaction Fee as well.

I think what a lot of people do not allow for is the fact that paypal builds their fees into the exchange rate, which at first glance makes it look like a very poor exchange rate. They do not take into account the extra fees added by the banks.

And if anyone is thinking of using any of the GE Money cards attached to paypal....think again. They add a Foreigh Transaction fee to EVERY paypal transaction, even if it is just a local payment...because paypal is a foreign company.
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the_racquet_liquidator
Community Member
Posts: 9
Registered: ‎11-19-2007

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
when buying with Visa and paypal I got stung twice.(not any more though) - paypal convert to the other currency(add 3%) and then nab Visa charge international transfer fee of another 3%.

paypal with westpac mastercard and it is only 3% paypal currency conversion and no bank charges at all.:^O
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phorum_junkie*
Community Member
Posts: 7,028
Registered: ‎11-01-2006

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999
I have tried with ANZ Visa and it was the nearest but still slightly more than Paypal, only a few cents but they would add up over time. I think I will continue to let Paypal do the conversion.
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I have lost 2 days already.
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Community Member
Posts: 1
Registered: ‎12-03-2003

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999

Add to the Paypal fees my credit card (Woolworths Qantas Card) which since January 2012 has begun charging me Overseas Transaction Fees amounting to additional 3%. Strange that it only started happening since Jnauary 01, 2012. Prior years there was not one Overseas Transaction Fee applied. Now on top of the Paypal feee I have to factor in another 3%. So regardless of what POP states, buyers are slugged by PP and now Woolies. Certainly don't Love My Woolies! Woolies even stung me on an AU$ dollar transaction from a GB seller. PP took no fees, but Woolies took their 3%!

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lyndal1838
Community Member
Posts: 8,759
Registered: ‎07-23-2006

Re: EBAY PAYPAL CONVERSION RATES

in reply to helmutk9999

That would be the cross border transaction fee...it sounds like the credit provider is charging it on ALL paypal transactions simply because paypal is an overseas company.


This is what I warned about above with the GE Money cards.

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