paypal always take 400INR more in currencyconversion

Discussion in 'PayPal' started by vitrag24, Nov 27, 2007.

  1. #1
    If i withdraw my funds from paypal to indianbank..
    in currency conversion it always deduct around 400INR then actual currency conversion..

    e.g. rightnow 1USD = appr. 39USD then paypal calculating 1USD = 38INR

    how to avoid this?

    someone earlier suggested to change currency or something else.. i fotgot it..

    guide me how to get maximum withdrawl..
     
    vitrag24, Nov 27, 2007 IP
  2. swapnil90

    swapnil90 Well-Known Member

    Messages:
    1,528
    Likes Received:
    80
    Best Answers:
    0
    Trophy Points:
    115
    #2
    You can't avoid it neither can you change your currency.

    PayPal increases the rate of transfer as the fees for transfer. PayPal to Bank transfer is one of the quickest and best way to get maximum withdrawal and you can't help the decreasing rates. Part of the business :)
     
    swapnil90, Nov 27, 2007 IP
  3. eddy2099

    eddy2099 Peon

    Messages:
    8,028
    Likes Received:
    568
    Best Answers:
    0
    Trophy Points:
    0
    #3
    That probably represents the 2.5% foreign exchange fees. At the moment, there is nothing you can do about it. Even if you use Xoom.com , they do deduct some fees for the forieng exchange fees but they do not tell you what the percentage is.

    I guess you can wait until the Indian Rupee is accepted currency in Paypal then set it as your primary currency and have people pay you in rupees. When that happens, you will not need to pay the 2.5% fees but all your customers who are not paying you in rupees would pay that fees.

    For the time being, just take it as part of a business expense.
     
    eddy2099, Nov 27, 2007 IP
  4. deluxdon

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

    Messages:
    25,481
    Likes Received:
    1,943
    Best Answers:
    32
    Trophy Points:
    480
    #4
    Yes truely said eddy. Vitrag you can't do anything in this regarding currency conversion. Just charge little more to your client as thats only way you have and go on ;)
     
    deluxdon, Nov 27, 2007 IP
  5. izeaus

    izeaus Banned

    Messages:
    803
    Likes Received:
    18
    Best Answers:
    0
    Trophy Points:
    0
    #5
    Yes . Currency Exchange is 2.5% when Paypal does not support Indian Currency in their main currency .. Instead when you want to withdraw via cheque . Indian Banks would charge you more because of the currency regulations.

    In my case when I got my cj cheque for $47 the amount credited to my Bank account was around INR 2000 when the dollar to Inr conversion was high but then bank charges were high and they charged INR 400 so it is better to have the currency converted and then sent to your bank account rather than recieving cheque from Paypal which takes at least 20-40 days to arrive and other 21 days to encash it ..

    so total of around 2 months before you get your money while getting it in 38 Rs would get you in 3 days maximum..
     
    izeaus, Nov 27, 2007 IP
  6. vitrag24

    vitrag24 Active Member

    Messages:
    358
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    53
    #6
    mean we cant avoid this currency conversion loss by anyway?
    by changing primary currency to any other or anyway?
     
    vitrag24, Feb 27, 2008 IP
  7. eddy2099

    eddy2099 Peon

    Messages:
    8,028
    Likes Received:
    568
    Best Answers:
    0
    Trophy Points:
    0
    #7
    Currently the Indian Rupee is not one of the currency which you can create a balance for so at the moment, there is no option for you.

    In the future, if the Indian Rupee is considered one of the currency you can set the base for, you can then use it so avoid the conversion fees. This way, your customers would pay for the 2.5% foreign exchange fees when they convert from their currency to the Indian Rupees.
     
    eddy2099, Feb 27, 2008 IP
  8. vitrag24

    vitrag24 Active Member

    Messages:
    358
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    53
    #8
    hmm..
    can we do something like changing primary currency in euro or somethingelse andthen send to indian bank?

    as euro is stable than USD but i'm not certain whether there will be some difference...give your opinion...
     
    vitrag24, Feb 27, 2008 IP
  9. eddy2099

    eddy2099 Peon

    Messages:
    8,028
    Likes Received:
    568
    Best Answers:
    0
    Trophy Points:
    0
    #9
    If your customer is from the US, when he pays you in Euro, he would have to pay the 2.5% foreign exchange fees if he uses his paypal balance or if he uses a credit card, his bank would charge him some fees for the conversion. Then when you withdraw from your Euro account to your bank, Paypal will use its bank's conversion rate + 2.5% foreign exchange fees and you are back to square one. In the end, you may even scare some customer away since the euro would seems more expensive.
     
    eddy2099, Feb 27, 2008 IP
  10. vitrag24

    vitrag24 Active Member

    Messages:
    358
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    53
    #10
    yeah but in euro we can keep rate according to usd conversion...wont it be effective?
    :D
     
    vitrag24, Feb 27, 2008 IP
  11. eddy2099

    eddy2099 Peon

    Messages:
    8,028
    Likes Received:
    568
    Best Answers:
    0
    Trophy Points:
    0
    #11
    Just take note of all the foreign exchange fees and you should do fine. In the end, it is something you need to decide on your own. Remember that not only that with the EURO, your products and services would seems more expensive to the rest of the world and to top it all up, they need to pay extra fees for it. This may put off some customers.
     
    eddy2099, Feb 27, 2008 IP
  12. vitrag24

    vitrag24 Active Member

    Messages:
    358
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    53
    #12
    hmm.. i think i should keep USD in primary currency & withdraw money at longer interval when more bucks have been deposited radher then frequently withdrawing.. isnt it? :D
     
    vitrag24, Feb 27, 2008 IP
  13. eddy2099

    eddy2099 Peon

    Messages:
    8,028
    Likes Received:
    568
    Best Answers:
    0
    Trophy Points:
    0
    #13
    I think it does not matter since whatever the amount you withdraw would always come with the 2.5% foreign exchange fees. Personally, I would withdraw the bulk of my money and keep some there to pay for what I need to purchase for the month.

    From the looks of things, it would be a while before the US dollars goes up back to its former level.

    I am actually taking this opportunity to purhase items from the US as it is cheaper than ever before. Some how I believe that non-Americans would take advantage of the situation to make purchases and for the Americans, the difference in foreign exchange does not make any difference to them.
     
    eddy2099, Feb 27, 2008 IP
  14. vitrag24

    vitrag24 Active Member

    Messages:
    358
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    53
    #14
    I'm from india..
    is it possible [&safe] to buy ipod from us from net? i've never bought anything from online stores yet..
     
    vitrag24, Feb 28, 2008 IP
  15. eddy2099

    eddy2099 Peon

    Messages:
    8,028
    Likes Received:
    568
    Best Answers:
    0
    Trophy Points:
    0
    #15
    Well, you can certainly do that but it would mean that you would have to shoulder the risk of delivery and accept that the ipod you purchase would come without any warranty. It may cost you a hefty sum on delivery and when it arrived in India, you may have to pay taxes or custom duties for it.

    If you care about warranty then it would certainly be better to just buy it in India even though it would be more expensive.
     
    eddy2099, Feb 28, 2008 IP