EBAY PAYPAL CONVERSION RATES

[helmutk9999]

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.

[phorum_junkie*]

Change your bank!

[b3llag1na]

slightly off the original (and old!) topic...

If you want to avoid CC card foreign currency fees,  adding dollars to your paypal account from your bank account (so a cash transaction), then converting them in paypal to the foreign currency of your choice, will avoid these fees. You won't be able to do a CC charge back, of course, but you will have paypal protection anyway.

And no matter where you go, the exchange rate you will be eventually pay is NEVER that advertised on the media, as all companies / banks add brokerage fees.

[cq_tech]

Of course, that only works if you don't select your credit card as the funding source so you won't be paying the card provider's 2.5% offshore transaction surcharge, but if you pay using either your PP balance or your bank account, the conversion amount that Paypal calculate for you still includes their own offshore transaction component, which is just a fraction below the bank's 2.5%, so yes, you will save money, but even on a $100 transaction, the amount saved would only be in the order of a few cents.

The best way to avoid these fees is to keep different currency balances in your PP account, but that is generally only possible if you're selling offshore and being paid in non-Australian currencies. Also, you are now at the mercy of sudden unfortunate currency shifts.

I figured out well over 2 years ago now that with very few exceptions, it is better to allow Paypal to perform the currency exchange. They do charge less, but not by much.

[papermoon.lady]

I noticed the discrepancy too. Just use an online currency converter while you are in PayPal and then see what PayPal charges you and you will clearly see the difference...

[leader-of-the-band]

I recently (last two months) got a PayPal policy update email.  I'm not going to bother to go reading it to add to this thread topic as this thread started in April 2011, and hasn't had a post since Feb 2012 !!!!!!!!!!!!!!

Please start a new thread on this topic to get current perspective related to current PayPal policy and practices.

[m3lissa.h]

true, true but i think for the 'safety' that paypal provides its worth it 😉

[lyndal1838]

Mariq, what you are not taking into account is the fact that the paypal rate that you see when you pay had the fees built into it.  The rate that you see on an on;ine currency conversion site is just the exchange rate, minus the fees that you will be charged by your bank or whatever service you use to convert your currency.

I have been converting AU$ to US$ or C$ and vice versa for over 30 years now and have used a number of services to do so. I started using paypal long before it had anything to do with ebay and have found it by far the best and cheapest way to pay in other currencies.

[lyndal1838]

m3lissa, you can still pay through paypal with all the protection that is offered but you can authorise your bank to do the conversion rather than paypal.

But I think you will find that it is the more expensive option.

[patchoo78]

mariq, was it really necessary to drag up a 7 month old thread?

[lyndal1838]

Not only dragging up an old thread but not reading it and understanding when it has all been explained in detail.