PayPal - Currency Conversion - What a joke!

its always less as they take some money for themselves!

 

I agree the 2.5% conversion fee is ridiculously high!!!

 

Paypal sucks, it was initially made for eBay only, and now that people started using it for tons of other things, Paypal started doing everything they could to make thousands daily....!

 

2.5% is high? Check your local bank and ask them whats the rate they charge for a currency exchange. You will be happy paypal only charge 2.5%

 

I thought that the standard foreign exchange rate is between 2 to 3%. My local bank charges 3% if I use my credit card overseas and if I use my ATM card to withdraw money from an overseas ATM machine, the fees are 3% + $2 per transaction.

The 2.5% which paypal charges is to cover any fluctuation in terms of foreign exchanges and all the associated fees in getting the money from their account in the US to your account in your country. Intermediary banks would need to get paid before they would do the international funds transfer, I doubt banks are charity and would do anything for free. Compared to say wire transfer or any other bank transfer, the 2.5% is extremely very low.

I would think that if you think the 2.5% is very high then I would think that you may not have been exposed to the real world of international trade and banking as yet. In the real world, the charges are a lot higher.

 

2.5% is an extra to the (low?) exchange rate. Then you have to add the payment fee, in my case an average of 4.5%.

So the total fee is at least 7%... still cheap?

 

Yes, if you are looking at total fees, 7% is still cheap. As long as you are not paying more than 15% for services, it should be alright.

I supposed since you say it is expensive it is because you already are using a service which can offer you much less in terms of fees. If that is the case, just use whatever meet your needs at the lowest price.

 

Wow, I didn't know paypal dingged international users that much. Im from usa so i dont have those problems but I understand the currency exchange issues

 

Well, with the domestic banking system, local banks do work with each other and exchange funds on a daily basis and thus cost involved in the transfers are factored into the normal course of business. However, when you cross national borders, things can complicating because the originating and terminating banks may not be partner banks and as you know, banks are for-profit businesses and thus they would only operate if they can make money out of the options.

Basically, with international banking, the funds would inevitably involved with at least 3 or more banks and to complicate things, different countries may have different banking systems and regulations.

It has really nothing to do with Paypal. As long as you involved international banking, you will really see the fees piling up. In fact, I've used physical checks and wire transfer options, the paypal option despite the fees is still the cheapest option to receiving money.

 

The USD to my local currency conversion rate is exactly 2.5%

Not difference at all - its a lot better than pay 12-15% for local traders who charge to send me USD on Paypal.

 

2.5% for exchange currency ? wtf ? atm charges 1% in my country.

And also I noticed that probably paypal thinks I am having ukrainian grivnyas in my account and convert them to USD...What a BS...I have USD account and fill it with USD too.

Another proof that paypal is total BS

 

Yes, just got verified in paypal account. So whole story!

1. I have debit card in USD, it was created like USD card.

2. When I pay with PP and funds charged from my CC, I get 2 currency exchange operations on each transactions ???!!!!

Payment To xxxx
Currency Conversion (credit) To U.S. Dollar From Ukrainian Hryvnia
Currency Conversion (debit) From Ukrainian Hryvnia To U.S. Dollar
Transfer From Credit Card

WTF is going on ? Which exchanges ? I have USD and pay with them...

I am not dealing with exchange service and not needed it. I want to deal with payment processor.

FUCK you paypal! no matter what! this is ridiculuos and no explanations needed for that, just BS

 

What a real jowk... this paypal conversion is not updated

 

If the Debit Card and/or your mailing address is not the US, it would by default convert to your local currency. However, to prevent this from happening, the next time you pay, on the Payment Methods, click on the 'Other Conversion Options' link then select 'Bill me in the currency listed on the seller's invoice.'. By doing that, you will be billed in USD and your credit card company would do the conversion if any. By default, they will convert to your local currency.

Before you start blaming Paypal, make sure that you check all the available options. Besides, it would be unusual for a non-US citizen or resident to be using a Credit Card/Debit Card in USD.

Incidentally which bank issued the Debit Card ?

 

"Besides, it would be unusual for a non-US citizen or resident to be using a Credit Card/Debit Card in USD." I don't think so, it made just to make my life easier and control spending so I will not need that exchanges like now. And it is very usual cause dollar goes everywhere in the world, so it's very clear that I make car to pay internationally without any stupid exchanges. If I will need from time to time I will make a card in local currency to pay locally and ocasionally will pay internationally with exchanges - sounds very clear to me.

Also what about payoneer or epassporte cards ? Mainly non-residents use them. And all right!

Ukrsibbank issued it and have ALL legal rights to do so, which in paypal case I highly doubt!

"If the Debit Card and/or your mailing address is not the US, it would by default convert to your local currency." Very strange, cause I noticed that just recently, I mean all that conversions. Looks like another option to gain as much money as possible from customers, while not needed absolutely from logic point of view!

"Before you start blaming Paypal, make sure that you check all the available options." I thought paypal will make life easier, not harder with it's "options"

"However, to prevent this from happening, the next time you pay, on the Payment Methods, click on the 'Other Conversion Options' link then select 'Bill me in the currency listed on the seller's invoice.'." Where I can find it ? Looks I can't get it.

 

Paypal say they have a margin of 2.5% over the currency exchange rate.. which blows..

But XE is the raw rae and its almost impossible to get that rate at any FX dealer or bank..

I recommend holding the GBP in your a/c as GBP and not converting it to AUD unless you really need the money.. then using the funds in GBP as money to purchase then the person you buy from carries the FX charge.. also the AUD is very high these days so if it drops in the next two weeks you might pick up an extra 1 - 2 % on your side of the deal.

But yes I hate the whole Paypal FX exchange deal..

 

When you Pay for an item, you will be prompted with the Payment Methods.

I am using the Payoneer card myself and it is billed in US dollars by default. For my Singapore credit card, I have the option to opt to bill in local currency or in US$.

 

It seems I only can choose currency (which to pay, but not have my local for sure) options, amount of payment, and ability to choose from ebay, goods, or services. That's it. Will try to look more in future though.

 

SEOLinker,

your searching on the "Send Money" screen, not a payment for an invoice generated on the receiver side.

 

Ah, so on receiver side ? I can only pay, not receive.