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PayPal - Currency Conversion - What a joke!

Discussion in 'PayPal' started by Brennan, Jul 25, 2008.

  1. #1
    I recently received a very large sum in GBP from Sedo and PayPal converted it to AUD, they converted it at the following rate:

    PayPal Exchange rate:
    1 British Pound = 2.01944 Australian Dollars



    Google says:
    1 British pound = 2.08250445 Australian dollars


    I checked the the xe.com rate when it was completed and it said:
    1 British Pound = 2.06175 Australian Dollars



    There's quite a difference and when it involves a large sum of money it adds up, do you think this is ridiculous is am I being stupid?
    SEMrush
     
    Brennan, Jul 25, 2008 IP
    SEMrush
  2. selling vcc

    selling vcc Peon

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    #2
    Currency Conversion Disclaimer

    Google cannot guarantee the accuracy of the exchange rates used by the calculator. You should confirm current rates before making any transactions that could be affected by changes in the exchange rates. Foreign currency rates provided by Citibank N.A. and displayed under license. Rates are for information purposes only and are subject to change without notice. Rates for actual transactions may vary, and Citibank is not offering to enter into any transaction at any rate displayed.
     
    selling vcc, Jul 25, 2008 IP
  3. Rohit patel

    Rohit patel Prominent Member

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    #3
    Well we have same problems when we transfer cash to banks and we are getting 1.50 Rs less then normal rates. We lost $35 to $40 per $1000 Withdrawal. But we can't do anything on it.:(
     
    Rohit patel, Jul 25, 2008 IP
  4. kush86

    kush86 Well-Known Member

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    #4
    Paypal does their rate by the average of banks around the world. you can find it in their TOS.

    Also remember they charge 2.5% to do currency exchange
     
    kush86, Jul 25, 2008 IP
  5. rickccc21

    rickccc21 Peon

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    #5
    I think that it is not totally true, the 2.5% commission is applied when you receive a payment in a currency for which you don't maintain a balance in your paypal account. For example you receive CA$ and you accept this payment but directly converted in US$. On the other hand if accepting the payment in CA$ and changing it in US$ then the commission is higher, or at least the exchange rate is different, so you finally pay them a higher fee.

    The best way is to only deal in your local currency. And open and close foreign currency balances accodring to your needs. Be aware that if you've several pending payments in one currency and that you open a balance in this currency paypal will automatically accept all pending payments.

    Also at least for european users, be patient as the UE commission is currently taking a closer look inside this, as these are clearly hidden charges. Paypal acting in virtual money these foreign exchange commissions makes no sense.
     
    rickccc21, Jul 25, 2008 IP
  6. getjimmy

    getjimmy Prominent Member

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    #6
    Paypal calculate by their own rate which is always less than real exchange rate.
     
    getjimmy, Jul 25, 2008 IP
  7. Netochka

    Netochka Peon

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    #7
    No one will pay the xe.com rate. It cost institutions money to exchange so there will always be a surcharge, albeit PayPal isn't known for great exchange rates.
     
    Netochka, Jul 25, 2008 IP
  8. mshore

    mshore Peon

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    #8
    Hate to say it but Paypal is not your friend on international exchange rates, and they are never going to be. They use their own calculations and take a percentage of the transfer. If possible, get the money out in the original currency and use a bank to switch it to local funds. Obviously this means using Paypal won't often work for you.
     
    mshore, Jul 25, 2008 IP
  9. kush86

    kush86 Well-Known Member

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    #9
    Its a problem with that. Most banks charge 8% for the exchange and paypal only charges 2.5%.

    Yeah by going through the bank you get a better exchange rate but the fee for it is higher than paypal so you will wind up paying more at the bank.
     
    kush86, Jul 25, 2008 IP
  10. mexabet

    mexabet Active Member

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    #10
    I have lost so much through their "commission" and I couldn't come to grips why one has to lose that much. You're not alone.
     
    mexabet, Jul 25, 2008 IP
  11. monika0611

    monika0611 Banned

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    #11
    Yeah, that stinks.. I have lost some money due to conversions... :(
     
    monika0611, Jul 25, 2008 IP
  12. apeterson

    apeterson Guest

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    #12
    Unfortunately there isn't much one can do. They do as they want... Always will. Your in the right to complain though because when it is large sums, it does add up.
     
    apeterson, Jul 25, 2008 IP
  13. eddy2099

    eddy2099 Peon

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    #13
    XE does not offer the official exchange rates and it is merely just for the purpose for information.

    If you do not know, currency exchanges is a product of supply and demand and can vary vastly from bank to bank or even in country to country. You would get a different rate if you change the money in the US as compared to doing the same conversion in the UK.

    Besides, in order to protect against the volatile currency exchanges, Paypal did explicitly mentioned that they will tag on the 2.5% foreign exchange fees as long as you are exchanging outside of your base currency or the US Dollar. It is not like they hidden that fact.

    In fact if you ever used a credit card to purchase from outside your home currency or withdraw from a foreign ATM machine, you would realized that there is about 2 to 3% foreign exchange fees which is tagged on to the transaction.
     
    eddy2099, Jul 25, 2008 IP
  14. JoseArmando

    JoseArmando Active Member

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    #14
    Yeah I've made that mistake once and lost some money.

    I don't think I'll convert money using their system anymore.
     
    JoseArmando, Jul 25, 2008 IP
  15. ryandanielt

    ryandanielt Well-Known Member

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    #15
    There crooks when it comes to this, from my understanding the Canadian dollar is more then the US dollar but according to PayPal the US dollar is worth more then the Canadian.

    By the way PayPal acts and by the way there business is run you could almost think that it is being run by a child.

    One day it will all catch up to them when one person decides to look into it further and find a loop hole but until that day we all are going to have to keep getting ripped off.

    Just My Thoughts!
     
    ryandanielt, Jul 25, 2008 IP
  16. eddy2099

    eddy2099 Peon

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    #16
    I know the Canadian Dollar is less than the US Dollars but they are very closely par now. Why can't you read Paypal's website as they clearly state that there is a 2.5% foreign exchange fees and as such would tip the US$ to be less than the Canadian Dollar.

    I am not sure how it is in Canada but here in Singapore if you use a credit card and makes an overseas purchase, the bank would tag on a 3% foreign exchange fees which makes paying in cash a lot better.

    Once and for all, I hope that you guys really don't play the ignorant game and actually read the Paypal website at https://www.paypal.com/us/cgi-bin/webscr?cmd=_display-fees-outside

     
    eddy2099, Jul 25, 2008 IP
  17. winson

    winson Active Member

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    #17
    wa, never take on look on this part
     
    winson, Jul 25, 2008 IP
  18. eddy2099

    eddy2099 Peon

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    #18
    Next time, make sure you read all the contractual agreement, acceptable usage policy and fees and all the HELP and FAQs so that you know what you are getting into. It is your responsibility to do so.
     
    eddy2099, Jul 25, 2008 IP
  19. MarcL

    MarcL Notable Member

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    #19
    I used to trade forex and currency values change very often...
     
    MarcL, Jul 25, 2008 IP
  20. brettk

    brettk Member

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    #20
    Based on my experience, Paypal really charges a lot with but I think it's worth the service compared to others.
    I'd be more comfortable to pay higher for the great services than to pay for the low services and worry around all the time.. :)
     
    brettk, Jul 25, 2008 IP