Currency when making online payments?

Discussion in 'Payment Processing' started by therock003, Jun 16, 2008.

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  1. #1
    When you checkout money for payments via the internet,what currency do the payment methods (Paypal and others) use?Cause i always end up paying more than what the actual currency is.

    Today i made i payment and i checked up my bank account status,and it looks like i paid 15 euros more than i was supposed to.That means the dollar2euro ratio was considered 0.68 instead of .65 that it's currently priced up.What's going on?

    I was supposed to send 359.99 USD (234.75) and instead my balance showed me that i actually paid 249.57 USD.

    Can someone please explain this to me.

    Are payment companies supposed to charge more in order to convert currencies?
     
    therock003, Jun 16, 2008 IP
  2. jhon99

    jhon99 Banned

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    #2
    paypal have their own currency, its different when you check in your bank.
     
    jhon99, Jun 16, 2008 IP
  3. therock003

    therock003 Peon

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    #3
    Different how?Anyway this time i used auctioncheckout.Question is,are these 15 euros related somehow with the currency exchange?How did i find myself 15 euros lighter?
     
    therock003, Jun 16, 2008 IP
  4. eddy2099

    eddy2099 Peon

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    #4
    Paypal supports several currencies and you are billed in the currency of what the seller sets which in your case is in the USD. If you are using a credit card to pay then you will given the option to bill you in USD and have your bank do the conversion (this option would include your bank's exchange rate and their foreign exchange fees which could be anything between 1 to 3%) OR have Paypal do the conversion to your local currency and bill you in local currency (this option would tag the 2.5% foreign exchange fees and using Paypal's bank's exchange rate)

    There is no such thing as a fixed exchange rate which is used globally. Exchange rates are determined by market forces (supply and demand) and they can vary greatly from bank to bank, country to country and moneychanger to moneychanger. It all depends on the demand and supply at the one selling the currency.
     
    eddy2099, Jun 16, 2008 IP
  5. therock003

    therock003 Peon

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    #5
    I see so you're saying that paypal doesn't charge any fees for the currency conversion while the bank does?So how can i be informed in more detail about paypal currency conversion?

    I guess this time which i used my credit card with auctioncheckout,my bank must have made the conversion,but .65 to .68 is like a 4,5% fee and that's crazy.

    By fixed i didn't mean it stays constant,but on the last 120 days it hasn't gone up .65 it has reached as low as .62-.63 but peaks at .65 approximately.
     
    therock003, Jun 17, 2008 IP