Misleading Currency Conversion!

[itzenterprises]

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?

[lyndal1838]

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.

[bigbrickshop]

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.

[itzenterprises]

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

[the_great_she_elephant]

 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.

[carls*world]

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.

[carls*world]

 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.

[itzenterprises]

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

[lyndal1838]

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.

[itzenterprises]

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.