Fee to pay Ebay invoice. Is this correct?

[shacklestore]

I've being charged international fees by my bank to either pay an Ebay invoice or for using the Paypal gateway. The invoices are in AUD and that is the currency I used tp pay. However I wasn't aware that when payments are made locally to Ebay using the Paypal gateway they are actually credited to an overseas account and any fees are passed on to the customer.

It seems all rather convoluted but I learnt this from my bank when I queried some odd debits. My main concern is that it doesn't seem to be mentioned anywhere by Ebay or Paypal though I could be mistaken and was hoping someone may be able to point me to the related section?

Ebay has rejected my email stating that I must use the Ebay contact form. However the only option they will allow is a direct chat session with an Ebay rep who as usual hung up when they realised my question was outside of their standard script. It's rather tiresome this hanging up game of theirs.

Thank you

[audio-spot]

I can't see why GE Money would be able to treat Paypal transactions as international? When you sign up to Paypal from the Aust site, your agreement is with PayPal Pty Ltd, and all money they hold are held in Aust banks.

Not saying it doesn't happen, just can't see why they would do this.

However, because the OP is paying an eBay invoice as a guest Paypal user, there is no user agreement between him and the Aust PayPal company, and hence maybe why it is treated as a foreign transaction.

No reason why the OP shouldn't sign up as a member on the Aust site.

[collect247]

PayPal isn't a bank so there is no money kept in any banks and they definately don't have an Australian bank

[lyndal1838]

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@audio-spot wrote:

I can't see why GE Money would be able to treat Paypal transactions as international? When you sign up to Paypal from the Aust site, your agreement is with PayPal Pty Ltd, and all money they hold are held in Aust banks.

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Just because you can not see it that doesn't mean it did not happen.

The Paypal transactions are treated as international because paypal is a US based company....the money is going overseas.

I did not like it so I removed that card from my PP account.....none of my other credit cards treat PP as an overseas transaction.

[audio-spot]

Never said Paypal Aust was a bank, but they are a licensed deposit taking institution, and any funds held in your account are pooled together and deposited in Aust banks.

It's in their financial services guide from Sept 2015.

[padi*0409]

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@audio-spot wrote:
Never said Paypal Aust was a bank, but they are a licensed deposit taking institution, and any funds held in your account are pooled together and deposited in Aust banks.

It's in their financial services guide from Sept 2015.

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A link to that please.

[shacklestore]

Thanks audio-spot for high lighting some important points.

The Australian Paypal website advises that the PayPal service is provided by PayPal Australia Pty Limited (ABN 93 111 195 389). Paypal is an Authorised Deposit-Taking Institution and thus regulated by APRA. Their licence authorises them to carry on a banking business in Australia. Paypal also has an Australian Financial Services Licence and is thus regulated by ASIC. 

[shacklestore]

I was looking at the same thing so have provided links. I haven't yet located information relating to local payments being considered overseas transactions. 

Paypal authority to carry on a banking business

Combined Financial Services Guide and Product Disclosure Statement

[pennyforum14]

Shacklestore, I doubt you will find anything on Paypal or eBay about payments for Australian invoices in Australian currency being considered international payments, because they DON'T consider them as such.  As Lyndal has been trying to point out, it is your credit card provider who is levying the International payment fee, and they are the ones who treat Paypal payments as international payments.  Lyndal has explained that GE Money cards do this and asked if that is if your card is with GE, but you have not answered.  That sort of makes me feel it probably is with GE, but that you prefer not to believe that this situation is a failing of GE, but would rather believe it is the fault of Paypal and/or eBay.  I am certain it is not.  The reason I am so certain of this is that any time you make a payment through Paypal it ALWAYS show all fees and charges at the time of payment, including currency conversion fees where applicable, and the final amount shown is exactly what will be charged to your account or card by them.  If you have a charge on your credit card statement over and about this amount, it is coming form your card provider, not from Paypal.

[cathyjoyjoy]

It can be very confusing, but as others have stated here, extra charges for international transactions are done by your credit card provider or your bank account provider ...... nothing to do with eBay or PayPal.

For example, my credit card holder recently implemented an "international transaction fee".  I have been charged this fee for a direct transaction with a US company, but not for any PayPal purchases for international or domestic purchases.

Also my eBay fees are automatically charged to my credit card each month and I haven't ever been charged an international transaction fee.

[dazzledayz]

You could always set your payment of eBay invoices up in a better way.

Make PayPal the default payment option and then link your CC to PayPal.

Done this way you are paying a bill NOT transferring money so any fees should be covered by eBay.

My partner buys O/S stuff using his Westpac Visa via PayPal and reports no fees associated with transfers to PP.

(though PP still make some on the cross rates)