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PayPal currency converter always shows Low Rates!

Discussion in 'PayPal' started by coolseo36, Jan 28, 2010.

  1. #1
    I think someone might be known to this.

    Paypal is showing lower Rates than the current market rate while withdrawing the money to credit card or bank. This is except the fees they are charging always!

    Their Currency conversion Rates always shows 3-4% lower to the actual Rate..

    Do you have any similar experience or have any idea about what it is? Kindly share it here..

    SEMrush
     
    Last edited by a moderator: Jan 28, 2010
    coolseo36, Jan 28, 2010 IP
    SEMrush
  2. rochem1867

    rochem1867 Guest

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    #2
    paypal rips everyone offf i hate em good luck!
     
    rochem1867, Jan 28, 2010 IP
  3. Safetyfirst

    Safetyfirst Active Member

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    #3
    Well that is their main way of earning and continuing their business , noticed this long before.
     
    Safetyfirst, Jan 28, 2010 IP
  4. lepi

    lepi Active Member

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    #4
    This is the way how to they get more money! I have many currencies on my account and never do any exchange if i don't need it......
     
    lepi, Jan 28, 2010 IP
  5. mellow-h

    mellow-h Peon

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    #5
    Exchanges fees are always a potential source of earning for a business dealing with currencies. You have to sacrifice those money for using the paypal service :)
     
    mellow-h, Jan 29, 2010 IP
  6. samser_m

    samser_m Active Member

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    #6
    In case of INR currency exchange, approx Re.1/- lower than standard, but still PayPal transfer fund relatively fast than other methods, a bit cheaper and afterall many of us use PayPal.
     
    samser_m, Jan 29, 2010 IP
  7. RightMan

    RightMan Notable Member

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    #7
    I guess... apart from the transaction fees, the currency conversion business offers them a very easy and lucrative income! :(

    Regards,

    RightMan

    (Thanks samser m...for correcting my mistake, I have suitably edited my post!)
     
    Last edited: Jan 30, 2010
    RightMan, Jan 29, 2010 IP
  8. samser_m

    samser_m Active Member

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    #8
    xe.com:
    1.00 USD = 46.3701 INR

    PayPal: 1.00 USD = 44.62 INR

    I have just checked
     
    samser_m, Jan 30, 2010 IP
  9. zodiac

    zodiac Peon

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    #9
    have you considered that the paypals conversion rates have to to with the bank that holds paypals money and does the converting?
     
    zodiac, Jan 30, 2010 IP
  10. samser_m

    samser_m Active Member

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    #10
    As far I know, PayPal's bank in India is Deutsche Bank. Not sure their xchnage rate, but if we take a closer look we will also see PayPal send the same amount which is locked while we request withdrawl. Bank don't charges anything for currency conversation.

    I requested money through Moneybookers few days ago, and bank charges currency conversation fee, and moneybooker informed that they can't do anything here.
     
    samser_m, Jan 30, 2010 IP
    dexterb007 likes this.
  11. hhsaus

    hhsaus Active Member

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    #11
    Their rates are always at least 2.5% lower. They are making tens (if not hundreds) of millions of dollars in profits thanks to this rip off.

    For a business of their size and their transaction volumes (over 20billion in the 4th qtr, with a large portion of that in foreign transactions) , they have more buying power than a lot of banks. And yet i still get a much better deal with my local (small) bank when it comes to foreign exchange rates.

    It's little wonder their revenue transaction rate was at 3.67% for the quarter.
     
    hhsaus, Jan 30, 2010 IP
  12. coolseo36

    coolseo36 Active Member

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    #12
    Thanks for all the info you shared, rep for you:)

    Do you know about Google checkout, how are they?
     
    coolseo36, Jan 30, 2010 IP
  13. samser_m

    samser_m Active Member

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    #13
    I think Google checkout is available in only two currency( GBP and USD). Also, verifiedbyvisa and mastercard secure code don't work. Not sure where, but somewhere on net I got few info that googlecheckout is best for large transactions or business. And I don't feel the are cheap than PayPal

    Here, I would like to share some of my personal thoughts:
    if you are programmer and get paid through freelancing sites, then we may have 2-3 options.
    1. PayPal: Though they give us lower exchange rate but seems okay for fast payment.

    2. Moneybookers :Their currency conversation rates are high- They are from GB, currency is EUR, my account is in INR. I did a test withdrawl USD $55 from a freelancing site, MB account balance became INR 2428.67 (1 USD = 44.157 INR approx. INR 0.90 higher than PayPal on the same day). I transferred the same amount, moneybookers deducted INR 117.64 for Bank transfer fees, so INR 2311.03 was sent from moneybookers. I got INR 1,918.00 - (FIR EUR 34.49 @ 65.2025)!

    So ultimately I got USD $55 = INR 1,918.00 (1 USD = 34.87 INR)
    If I could get it through PayPal then it would be INR 2373.63 (Considering paypal currency exchange USD 1 @ 43.157 on that day) - INR 50.00 (for withdrawl less than Rs. 6999.00) = INR 2323.63, so lost Rs. 405 = $9.5 approx.

    I am not sure for large payments, if any body have already transferred $200 or more kindly let us know.

    So, I should try to avoid MB.

    3. Payoneer (Not used yet, but seems good, only monthly charges which is something irritable for casual freelancing work, but okay for full time freelancer). Somebody informed on another thread that you would get approx same amount in hand like PayPal.

    If you are an Indian company and business is in India, I would suggest to go for Indian payment gateway. BillDesk is a very good one, may consider ccavenue too, they also not so bad, not only accept payments through CC, they also accept all pyments through Internet banking from major Banks in India. Although don't sure about their rate but feel they are good.

    CC avenue use Citibank's credit card processing system.

    CC and BillDesk both uses VerifiedByVisa/MasterCard SecureCode.

    But if your business is not so large, then paypal is just fine to start.
     
    samser_m, Jan 30, 2010 IP
  14. primoto

    primoto Member

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    #14
    but why do you think that they should not do this ...? well, it is an exchange service and everybody pays for this everywhere (even in Tonga, I guess )..
     
    primoto, Jan 31, 2010 IP
  15. coolseo36

    coolseo36 Active Member

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    #15
    I was planning to go for moneybookers but now I ll keep away...thanks for the help;)
     
    coolseo36, Jan 31, 2010 IP
  16. samser_m

    samser_m Active Member

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    #16
    What ? :confused:
     
    samser_m, Jan 31, 2010 IP
  17. yoes_san

    yoes_san Peon

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    #17
    Where did paypal take the conversion rate from by the way?
     
    yoes_san, Feb 2, 2010 IP
  18. PRGuy

    PRGuy Peon

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    #18
    Friend,

    thank you very much for such a detailed information. I really appreciate your effort. It has a clear picture.
     
    PRGuy, Feb 7, 2010 IP
  19. buzzgal

    buzzgal Peon

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    #19
    Paypal always behave like this they always pays less and can limit your account anytime
     
    buzzgal, Feb 7, 2010 IP
  20. samser_m

    samser_m Active Member

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    #20
    Probably they apply a standard rate which is lower than market to remain safe I guess
     
    samser_m, Feb 7, 2010 IP