PayPal - Currency Conversion - What a joke!

paypals currency converter IS a joke! I once changed my Canadian money to US then i realized it would be better to switch back to canadian, so i switch and LOST money!! They only want to make a profit.

 

It happens sometimes with me also.
I found online USD whcih is differ when i transfer monety from paypal to my country.
It is always lower rate i found in paypal.

 

Hello my name is Arj, I am sorry to hear about the situation regarding
currency conversion, and understand your frustration and concern over
this issue. I will be happy to assist you with your questions.

The exchange rate will be calculated anytime funds are converted from
one currency to another. The rate PayPal presents includes a small risk
factor as well as a currency conversion fee.

The rate will be figured at the time of the conversion from one currency
to another. For example:

· If funds are transferred from one balance to another in an
account, the exchange rate will be calculated and presented during the
conversion

· If a payment is sent in Pounds Sterling using a credit card
denominated in U.S. Dollars, the exchange rate will be calculated in the
Send Money flow

· If a payment is sent in Euros and the receiver accepts the
payment and converts it to U.S. Dollars, the exchange rate will be
calculated before the total amount is credited to the account balance

PayPal is not a currency dealer and therefore must purchase foreign
currencies from its bank. PayPal receives a quoted wholesale rate from
its bank [twice a day], and adds a 2.5% spread above this rate to
determine the retail foreign exchange rate that is applied to customers
who make a transaction that involves a currency conversion (such as a
payment in Euros from a U.S. dollar balance), or a withdrawal of dollars
by a U.K. user to his local bank account (the dollars must be converted
to pounds sterling before withdrawal).

The 2.5% spread that PayPal charges is competitive with most
multi-currency credit card transactions, in which Visa or MasterCard
charge a 1% spread above their wholesale exchange rate, and the
card-issuing bank typically charges an additional spread of 1-3%. Visa
and MasterCard benefit from a lower wholesale rate than PayPal, but
PayPal seeks to keep its foreign exchange rates competitive with credit
card transactions and other on-line payment service providers such as
Western Union. Because PayPal does not charge a high fixed fee for
sending international payments, the total cost of sending an
international payment through PayPal is still lower than many
international multi-currency bank transfers.

Please keep in mind that some of the published rates only apply to large
transactions that are valued at U.S. $1,000,000.00 or more. A more
applicable comparison for consumers is the exchange rates quoted at
airports or other consumer currency exchange shops.

PayPal allows its customers to transfer any amount that is U.S. $25.00
or more, with the same conversion rate, to the bank account and the
funds are automatically converted into the local currency for approved
bank accounts. For more detailed information on the exchange rate click
https://www.paypal.com/useragreement or copy and paste the entire link
into the address bar.

If you click the link "Conversion options" on the Review Your Payment
page, you will get a page that explains that you have two options for
being charged for a currency conversion. The two options are:

· The PayPal currency conversion process
· The MasterCard and Visa currency conversion process
You can select your option by choosing one of the following:

· Use PayPal's conversion process to complete my transaction using
my card's currency.
Both the original transaction currency and the converted amount
that I will be charged are disclosed for my convenience. I understand
that MasterCard and Visa have a currency conversion process. I have
chosen not to use the MasterCard and Visa currency conversion process,
and I will have no recourse against MasterCard and Visa with respect to
any matter related to this conversion.
· Bill me in the currency listed on the seller's invoice.
I will not know which foreign exchange rate has been applied to
this transaction until I receive my card statement from my card issuer.
I acknowledge that by choosing this option, my card issuer will
determine the foreign exchange rate to apply to this transaction, and
that I will not be informed of the foreign exchange rate or any
additional foreign exchange fees applied until I am billed by my card
issuer.
Once you make your selection, click "Submit."

If you have any further questions, please feel free to contact us again.

Sincerely,
Arj
Consumer Support
PayPal, an eBay Company

That's what've got in question why they do this.

Most imortant BAD thing they DID is to make my USD card in their system looks like Grivnya one. It only with them. And I paid to lot of places with it and nobody charges me for exchanges cause it's USD card. Moreover I have no money in PP, so they take it from CC directly AND exchange. Pure solid scum!

 

3 times my bank account cancel and i lost 50-100$ for currency conversion

 

Well, if you think the 2.5% is bad , you should see the Payoneer card which charges $2.15 + up to 3% each time you withdraw from a non-US ATM Machine. There is also a limited on how you can withdraw each time and each time you do make a withdrawal, there is the fees. At the same time, there is a $2 to $5 loading fees.

With this in mind, I actually opt to withdraw my earnings from Plimus through Paypal and into my bank account here in Singapore because it is cheaper option.