Can we take legal action against Paypal in this matter? I have noticed that Paypal does not gives USD to INR conversions for withdrawal to Indian Bank. For example, if the USD to INR rate at the time of withdrawal is 1 : 60, it will show the rate at around 57-78. I treat this as a matter of monopoly as PP is clearly not following the international conversion rate rules and would like to know what can be done in this matter. Add : I used MB a couple of years back and I remember that it gave exact conversion rates for USD to INR on any give day. However, I used to get around 5 % less than the amount that was shown in the withdrawal details of MoneyBookers and the bank never account for it (they told that there is a transaction fees, but it was never shown in accounting books !)
My guess is that it will be costly to bring action against Paypal and get a positive result. I'm willing to bet they operate within the law even if they aren't being fair about it. Do they have to follow the same rules that a bank would have to follow? Even if they did, there is probably leeway for them to do the same kind of things that MB did, like add a 5% "transaction fee", as long as it's mentioned somewhere in their TOS. You either need to consider it a cost of doing business or come up with another method to get the money converted. It sucks but remember the golden rule. He who has the gold, makes the rules.
I would not generally assume that every company operates within the law... This is a bad economy and big bosses need to show the board positive results... and sometimes the books are fudged in order to show false results.... People are always getting fired for stuff like this; but they do try to hide it until someone smarter then them figures out the numbers just dont add up.... You can sue anyone for anything, and for any silly reason.... but filing a law suit and winning are two different animals... Do you have millions of dollars for a possible multi-million suit? and so what if you won; you get pennies on the dollar in return, and thanks from paypal, please come again sucker.... and to be honest, everything should be transparent: What are the conversion rates.... List any fees.... List any taxes... and so on....
As far as I know, PayPal charges 2.5% conversion fee which is about the same rate that credit cards companies or banks charge on cross-border transactions. In my country, credit card companies charge 3% or 0.5% more than PayPal when you pay or receive funds in other currencies. I'm afraid there's nothing you can do in this case.
I wont recommend you to SUE paypal on this , because they operate in this field & they might have encountered lot of cases like this & they might have got their stronghold , otherwise they wouldn't have done these for this many long years. So either stop using Paypal & use some other payment system or adapt to their transaction charges , thats how we all have been doing business online.