topic Re: Misleading Currency Conversion! in Buying

Misleading Currency Conversion!

itzenterprises — Tue, 30 Oct 2012 07:41:47 GMT

Am I the only one frustrated by eBay's misleading currency conversion?

Most of the time its not a lot of money but as I purchase more expensive items from overseas it becomes a bigger concern, particularly in USD.

Considering eBay owns Paypal there should be a lot better fluency,

Ill give you an example below;

One item i ordered was listed

US $131.96
AU $127.77

+ US $39.99
AU $38.72

postage

So thats $171.95 USD
and $166.49 AUD according to eBay.

As for the Paypal transaction
$171.95 US turns into $172.15 AUD

Now forgetting what the actual exchange rate is at the moment and how little amount that example shows, it feels misleading, you go off eBays conversion only to find your paying more by Paypal, even when Paypal is owned by eBay. It should be more universal, fluid.

Im about to buy a much more expensive item of eBay from the US, but all im concerned about is how much more Paypal is actually going to charge me!

Anyone else share this concern?

Re: Misleading Currency Conversion!

lyndal1838 — Tue, 30 Oct 2012 08:00:56 GMT

Paypal charges a 2.4% conversion fee and an additional % (not sure what it is) if you use an International Credit card.

When you look at ebay you are seeing the actual conversion of the amounts.

When you pay with paypal you are charged that amount plus the additional amount of the conversion fee. Paypal builds their charges into the rate whereas most banks charge their fees as additional amounts.

I can tell you from many years of experience that paypal's rate is usually much better than your bank.

I used paypal a few minutes ago to pay a US seller....US$82.99 came to AU$83.32...not exactly a fortune.

Re: Misleading Currency Conversion!

bigbrickshop — Tue, 30 Oct 2012 08:21:17 GMT

If you are purchasing a high value item and want to know what the PayPal conversion will be you can login to PayPal and check prior to buying the item.

In PayPal click on Currency Converter and select Payment Conversion, from AU dollars to US dollars or whatever currency the listing is in.

Re: Misleading Currency Conversion!

itzenterprises — Tue, 30 Oct 2012 09:15:48 GMT

Alright fair enough, i just believe that eBay owning Paypal they can be a bit more accurate with there conversions on eBay. I always thought the fees were taken out of the total sent to the Sellers account, but if there is an additional fee in regards to the conversion thats built into Paypal rate it makes more sense.

Thanks

Re: Misleading Currency Conversion!

the_great_she_elephant — Tue, 30 Oct 2012 09:23:15 GMT

i just believe that eBay owning Paypal they can be a bit more accurate with there conversions on eBay.

If Ebay added the paypal fee into their conversions they wouldn't be accurate - not everyone pays through paypal.

Re: Misleading Currency Conversion!

carls*world — Tue, 30 Oct 2012 09:30:14 GMT

I agree with the OP here, and have held that opinion for quite a time.
Since most international transactions through ebay are funded via Paypal, I can't see any reason the conversion shown on the listing pages can't be aligned with the Paypal conversion rate.

As for credit card rates being more expensive, I recently made a purchase via another well known, international online venue. Their exchange rate saw the $AU as a little lower than the $US. ($AU1.03 = $US1.00) I purchased the item in $US instead, paid with my credit card, and paid 3% less in total, than had I used their convertor and purchased in $AU.

Re: Misleading Currency Conversion!

carls*world — Tue, 30 Oct 2012 09:31:54 GMT

i just believe that eBay owning Paypal they can be a bit more accurate with there conversions on eBay.

If Ebay added the paypal fee into their conversions they wouldn't be accurate - not everyone pays through paypal.

Then that would be a little bonus for the occasional buyer who doesn't use PP would it not? Getting their purchase a little cheaper than expected.

Re: Misleading Currency Conversion!

itzenterprises — Tue, 30 Oct 2012 09:36:27 GMT

99% of eBay transactions internationally would be done by Paypal (yes its a guess) Trusting a seller and using a method such as WU, MG or International Bank Transfer is not common, not until you have dealt with them a few times and by that stage you may not even complete the transaction through eBay

Re: Misleading Currency Conversion!

lyndal1838 — Tue, 30 Oct 2012 11:00:37 GMT

Carl. I think you will find that your credit card would have had a separate charge for currency conversion which would add to the overall cost of the item you bought.

What you are all missing is the fact that all institutions which deal in foreign currency will charge you for the conversion.

Paypal is no different, but they build the fee into the conversion rate....there is no separate charge.

The actual cost of the item is the same on ebay and paypal but the final paypal payment includes the conversion fees.

Re: Misleading Currency Conversion!

itzenterprises — Tue, 30 Oct 2012 11:19:01 GMT

What i think people are missing, is im not even complaining about the price, im happy paying the appropriate rate exchange. i just want to know what ill be actually paying, before im paying. And my thought is considering how closely Paypal and eBay work together and how much they push it and the fact eBay owns Paypal, cant there be more accuracy.

Re: Misleading Currency Conversion!

lyndal1838 — Tue, 30 Oct 2012 12:25:05 GMT

There is complete accuracy itzenterprises.

If you log into your paypal account and use the currency converter you can see that the item cost is exactly what is shown on the ebay site.

Change that to show what you will pay for that transaction through paypal and you will be given the adjusted rate which includes the conversion fee, which your bank would charge as a separate amount.

How much more accuracy do you want, or indeed could paypal give you?

Re: Misleading Currency Conversion!

itzenterprises — Tue, 30 Oct 2012 23:03:10 GMT

Alright maybe im lazy, but really do you not understand, the fact that seeing an amount on eBay should be final, especially when you are browsing a country specific site (Australia) and yes before you start i know i can choose "Australia Only" on the left side.
The sellers advertise a price where they are located overseas, eBay gives you a converted amount, most people pay by Paypal, but when you pay the amount is different. Cant there be a little more fluency. If you dont agree fine, but i dont believe its unreasonable expectation.

Re: Misleading Currency Conversion!

itzenterprises — Tue, 30 Oct 2012 23:16:06 GMT

And i finally read you post properly lyndal, i dont blaim Paypal, your first response made me understand what the difference was and thats perfectly reasonable, even the method mentioned in your last post is simple. I do still feel eBay could do more, if Paypal still was a completely different entity i would most likely accept it. But i just feel it could be more specific especially considering (like a broken record) eBay owns Paypal.

Re: Misleading Currency Conversion!

cq_tech — Wed, 31 Oct 2012 00:54:09 GMT

Don't forget also that there is a "buy" rate and a "sell" rate, and the difference between them can be as much as 2c (i.e. 2%).

You certainly don't have to be a rocket scientists to know which rate that we, as buyers, are paying. 😞

Re: Misleading Currency Conversion!

the_great_she_elephant — Wed, 31 Oct 2012 03:25:49 GMT

If you click on any overseas listing, you will see that in fact the conversion is always given as an approximation (e.g.GBP 35.60 Approximately AU $55.23)

Ebay cannot be any more specific, because quite apart from any fee that Paypal or your credit card provider might charge, the exchange rate itself fluctuates from day to day and the rate quoted in the listing may not be the same one in force when your payment is processed.

Re: Misleading Currency Conversion!

patchoo78 — Wed, 31 Oct 2012 03:34:49 GMT

I just checked one of my transactions to find out myself, and there was only a 13 cent difference between the eBay estimate and what I actually paid through PayPal. It was between GBP and AUD

Re: Misleading Currency Conversion!

lyndal1838 — Wed, 31 Oct 2012 03:36:50 GMT

Please explain how ebay could do more and exactly what they could do.

You have been told the exact cost of the item, using the the paypal conversion rate and you can check on the paypal site what it will be when the paypal fees are added.

There is no compulsion for you to allow paypal to do the conversion...when you actually pay you are given the option to allow paypal do the conversion OR to have it done by your bank.

You could do your own research and find out the rate charged by your bank, BUT that is not the final rate you are charged. Your bank/credit card company will add a Conversion fee to your account days after the payment has been made and in some cases an Across Border Transaction Fee.

How would ebay know which option you are going to choose?

Re: Misleading Currency Conversion!

nbr001 — Thu, 27 Dec 2012 22:55:15 GMT

i have to say that i totally agree with itzenterprises on this one. I bought a projector on ebay listed as:

US $549.99

AU $530.18

Then when i make payment by Paypal its now AU $550.88

As far as i know all sellers have to have a Paypal account - so ebay isnt forcing people to use it but not far from it. If Paypal is the preferred payment method i think the listing should state:

US $549.99

AU $530.18 at market rates

AU $550.88 if paying by paypal

Or something like that - if the paypal rates are set, why cant they display the approximate paypal charge on the listing?

I know the exchange rate fluctuates - thats why the ebay listing includes the word "approximate". But they could add their 4% to the listing price and still use the word approximate...

Re: Misleading Currency Conversion!

zanadoo_56 — Fri, 28 Dec 2012 00:23:13 GMT

I think that's when the exchange rates listed are at their worst - eBay says we pay less, but use PayPal and you pay more. I noticed that when I made a purchase from the US yesterday...and it annoyed me very much.

Re: Misleading Currency Conversion!

***super_nova*** — Fri, 28 Dec 2012 00:53:22 GMT

i have to say that i totally agree with itzenterprises on this one.

I know the exchange rate fluctuates - thats why the ebay listing includes the word "approximate". But they could add their 4% to the listing price and still use the word approximate...

Please, read carefully the answers above; eBay does not know how much the $ will be at the moment you pay, they have no idea when you will pay, and they have no idea what your bank will charge if you use CC. So how on earth do you expect tem to tell you the total before it is processed?