Paypal Exchange Rates Less ????

Ok So i was checking if there is much diffrence in real exchange rate and paypal exchange rate

Normal Exchange Rate - Source

1USD = 49.3583 INR

Paypal Exchange Rate

1USD = 47.7750 INR

Is this for all countries ?

 

Yes paypal rate is always less compared to current rates,thats how they make money.

 

As you would be fully aware, exchange rates are not standard across the board and vary from bank to bank or moneychanger to moneychanger. XE rates are typically a generalized exchange rates typically interbank rates, ie where bank use to exchange big sum of money with another bank.

Retail rates would be much different from the interbank rates. Also changing currency say exchanging USD to Rupees in India would give you a different rate if you do it in the US because everything about currency exchanges is about supply and demand (willing buyer, willing seller). Also exchange rates are not static, ie it does not stay the same rate throughout the year, month, day or even hour, it can change within minutes or seconds.

Paypal uses the rates which its banks offers and tag on a 2.5% foreign exchange fees (this would counter any currency loss which paypal may suffer when it actually complete the transaction for you). With how much currency exchange rates can swing these days, the 2.5% fees may probably not cover any losses paypal may face particularly if you are exchanging US$ to AUD$ in the last few weeks.

If you have the time, pop into several banks and moneychangers in your region and see if the rates are the same between all of them ?

 

It would obviously have to be lower.

They need to protect themselves from any fluctuations in the exchange market and make profit at the same time

 

yes their exchange rates is always lower than real,,you should not exchange all u got to the currency that you dont work with it alot,thats what i always do,if you do a google search like usd to euro you will see the real and ontime exchange rate..

 

ya exactly me to received money in that rate from paypal when i withdraw 500 usd they have always less rates then normal although it's free and not very much expensive rather then other payment processor and also its reliable

 

The Main exchange rates are not taken into account by most of the Bankers and Financial Institutions.

 

Paypal takes a 2.5% spread which seems excessive as they already take 1.5 - 3% already in fees...

however this seems to be the normal when dealing in FX related issues...even my bank has a 2.5% spread..

its daylight robbery.

 

Yep paypal rates are always lower ..... ripoff

 

It isn't a rip off.

Put yourself in PayPal's shoes and look at it from their point of view.

At the end of the day, they are a business too.

 

The rates are a bit low but it's a business and they need to earn a profit to continue operating.