Why Paypal's Currency convesion rate is so low

Discussion in 'PayPal' started by cooljeba, Jul 17, 2007.

  1. #1
    I have always see this. Today I thought lets ask buddies here.

    Today I withdrew money.. this is the conversion rate of Paypal.

    Exchange Rate:
    1 U.S. Dollar = 39.0487 Indian Rupees

    This is what I found in Google the rate of INR

    1 U.S. dollar = 40.3437286 Indian rupees

    I also checked at XE.com and found this there

    1.00 USD = 40.3702 INR

    Already the Dollar is falling big time with Rupee and Paypal conversion rates are still lower. We Indians are loosing lots of money in just currency conversion!!!

    ..:: peace ::..
    Jeba
     
    cooljeba, Jul 17, 2007 IP
  2. eddy2099

    eddy2099 Peon

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    #2
    As you already mentioned, the US Dollar is weakening which means that you will expect lower exchange rates. Some of the online exchange rates such as XE uses rates from a different source as what the Paypal bank uses. Different banks have different exchange rates. Also as indicated on Paypal website, there is a 2.5% foreign exchange fees which is included. Paypal does not have any real control over the exchange rates as it is defined by the bank they used.

    Indian users are not the only one getting lower exchange rates. Anyone who trades in US dollars will suffer too but then in the end, in theory, if you earn Rupees then things from the US would in theory be cheaper.
     
    eddy2099, Jul 17, 2007 IP
  3. tangotocharli

    tangotocharli Peon

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    #3
    paypal makes a huge profit! it's looting us!
     
    tangotocharli, Jul 17, 2007 IP
  4. Mong

    Mong ↓↘→ horsePower

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    #4
    Paypal currency conversion rates also include their handling fee.

    You think paypal is sending money to your bank account for free? :D
     
    Mong, Jul 17, 2007 IP
  5. deluxdon

    deluxdon Catch Me If You Can...!!!™ Staff

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    #5
    Yes thats true. As indicated on Paypal website, there is a 2.5% foreign exchange fees which is included in this thats why their exchange price is low.

    BTW just checked this with Xoom.

    Current Exchange Rate:
    US$ 1.00 = INR 39.1149

    Rate is little bit higher then paypal ;)

    And its lot quicker then paypal. (You will get your funds within 3-4 days max.)
     
    deluxdon, Jul 17, 2007 IP
    Mong likes this.
  6. inworx

    inworx Peon

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    #6
    Whats the rates are, PayPal includes 2.5% currency exchange fees as well. Dont forget them which totls about INR 0.90 - INR 1

    So, for every dollar, you loose 1 INR
     
    inworx, Jul 18, 2007 IP
  7. reachpradeep

    reachpradeep Well-Known Member

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    #7
    Paypal take some transaction fees so better use xoom to witdraw your money
    US$ 1.00 = INR 39.1149

    they give good exchange rate. but they charge 8$ fees. try to insert some coupon code to get discount on fees
     
    reachpradeep, Jul 18, 2007 IP
  8. tradeepak

    tradeepak Banned

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    #8
    Dollar rate wont fall below 40 against INR. Be assured. Dont worry!
     
    tradeepak, Jul 18, 2007 IP
  9. Maksa

    Maksa Well-Known Member

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    #9
    It means XOOM is cheap and best way to get money home :)


    btw do anyone know how can we check paypal todays's exchange rate? i just want to know so i can see before i take money.
     
    Maksa, Jul 18, 2007 IP
  10. champ_rock

    champ_rock Peon

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    #10
    i think u have to start the cheque withdrawal and just before the final confirmation it tells you the conversion rate that you will be getting on the transaction.

    therefore, just try to withdraw 10$ (do not confirm, in the end) to see the conversion rates
     
    champ_rock, Jul 18, 2007 IP
  11. Maksa

    Maksa Well-Known Member

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    #11
    tha't cool idea i will try that when it required for me :)
     
    Maksa, Jul 18, 2007 IP
  12. eddy2099

    eddy2099 Peon

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    #12
    At the Withdrawal part, there is a foreign exchange calculator which you can use.
     
    eddy2099, Jul 18, 2007 IP
  13. mania2night22

    mania2night22 Banned

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    #13
    so you better try to use XOOM to withdraw your money :D
     
    mania2night22, Jul 18, 2007 IP
  14. megri

    megri Active Member

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    #14
    Today rater is good It is equal to market 40.25 INR I think PayPal has changed its conversion rate and giving current market rates
     
    megri, Jul 25, 2007 IP
  15. eddy2099

    eddy2099 Peon

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    #15
    Paypal does not decide the conversion rate, it is fully dependent on the foreign exchange rates used by the bank which Paypal uses.

    The US dollar has risen a little this two days and that is why you see a slight increase. It will come down when the US dollar falls and goes up when it goes up. The rates are not fixed and it varies day to day.
     
    eddy2099, Jul 25, 2007 IP