Why is my refund less than what I paid?

[negan]

This is more a PayPal question, but as they don't have an AU forum, I'll post my issue here.

I paid $3184.83 AUD for an item on 28th May, converted to 1770.00 GBP.

Had an issue, opened a dispute case. Just won it.

I have now been issued a refund, but it was the 1770.00 GBP converted back to AUD which today equals $2826.95.

The user agreement policy states:

14.6 When you send a payment in which you perform a currency conversion using PayPal (i.e. converting the currency in which you fund your payment into the currency to be received by the recipient) and later there is a refund, return or Reversal, we will generally reverse the currency conversion and complete the refund, return or Reversal in your funding currency using the exchange rate which prevailed on the date of the original transaction.

This does not seem to have been the case in my situation. Now I have lost over $357.88 due to change in exchange rates.

I do not see how this is fair on me when I had to pay $3184.83 and not have received my item.

Anyway I sent PayPal a message about this with the above user agreement statement, this was their response;

Since exchange rates fluctuate, you may find that the original currency is worth less or more than it was on the date of the original purchase. In some instances, you may make money on the conversion exchange, and in some instances there may be a loss if you were to convert the currency. PayPal will not reimburse you for a loss in currency exchange, and we also will not take back any money that you potentially could have made on the currency conversion. We will only refund the exact dollar amount in the original currency that was used on the payment.

Anyone have any more ideas or am I just fighting a losing battle?

[2266claire]

I have read the complete thread and am in a similar situation, except my original purchase, in GBP, was converted to AUD using a higher rate than the official exchange rate on that day, (costing me an additional $1000 over official conversion rates) and yet my refund, only 5 days later was offered to me at a rate that was lower than the official rate.

So I have two questions,

1. Should they have been using the same rate as on the day of purchase since the refund happened only 5 days later?

2. How can they justify setting their own rates higher on charges and lower on refunds....surely that is not fair?

[davewil1964]

Maybe make sure you want what you bought in the first place.

A difference of $1000 would indicate a purchase of many tens of thousands. I certainly wouldn't be using eBay for that sort of purchase.

If you've read the thread you would know that Paypal include currency conversion fees in their charges. Banks tend to add it on.

If you've read the thread you would know that the amounts paid (and refunded) are in the destination currency.

[digital*ghost]

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@2266claire wrote:

2. How can they justify setting their own rates higher on charges and lower on refunds....surely that is not fair?

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Unfortunately, currency conversion fees apply for both payments and refunds, and it is set at a rate of 4%, which is built into PayPal's commercial rate (that is, instead of having the exchange rate at - for example - 70c and then whacking a 4% fee on top, it will be 72.8c / 67.2c, depending on which way it's going) - if memory serves correctly, a refund now has to be issued within one day for the original rate to apply. 

[jayohwenn]

I've ALWAYS lost out on currency conversion...deep down it's just another corporate scam...same as "global" shipping.

They've even refunded me less for purchases in my own country...just enough to make it not worth my time to ask them why.

[kh-stanley1]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread HERE if you wish to continue to discuss this topic.

Thank you for understanding.