Paypal Is scamming on conversion rates

Discussion in 'PayPal' started by joecool6101, Sep 26, 2008.

  1. #1
    Hello,

    After recieveing 2 amounts of money 1 being from google the other being for another company. Both the same.. except maybe $100 difference.. Google sent payment at 1.03 so i earned 3 cents on every dollar.

    But with the money i have in my paypal account for the other company. When i went to go transfer to my bank account they were trying to give me some garbage exchange rate of 1.005 which made for losses in my revenue. (this is transferring to USD to CDN)

    Has anyone else noticed this? How can it be legal as they are supposed to be classified almost as a bank.
     
    joecool6101, Sep 26, 2008 IP
  2. cool_78

    cool_78 Guest

    Messages:
    11,409
    Likes Received:
    339
    Best Answers:
    0
    Trophy Points:
    0
    #2
    Yeah their conversion rates are low, but I think it's one way they earn from us aside from the fees.
     
    cool_78, Sep 26, 2008 IP
  3. eddy2099

    eddy2099 Peon

    Messages:
    8,028
    Likes Received:
    568
    Best Answers:
    0
    Trophy Points:
    0
    #3
    As you know Paypal is not a bank and does not do the foreign exchanges in-house and also the fact that currency is dependent on supply and demand and thus would not remain the same and would change over the course of the day.

    So in order to protect themselves and to cover all the necessary fees Paypal needs to pay in order to send you the money, they add a 2.5% foreign exchange fees which is clearly indicated on their website.

    If you do not think that Paypal has the right to protect itself from foreign exchanges or pay fees to send you the money, you should consider opting for another payment processor which would accomodate your needs.

    https://www.paypal.com/helpcenter/m...ps=solutionPanels&solutionId=10690&isSrch=Yes

     
    eddy2099, Sep 26, 2008 IP
  4. SunnyB

    SunnyB Peon

    Messages:
    38
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    0
    #4
    Uer, Ive noticed that too. But they do add a percentage on to make profit
     
    SunnyB, Sep 27, 2008 IP
  5. joecool6101

    joecool6101 Well-Known Member

    Messages:
    2,589
    Likes Received:
    68
    Best Answers:
    0
    Trophy Points:
    135
    #5
    i realize they need to make a profit..

    BUT 2 weeks ago the conversion rate was perfect with what normal conversion is.. so why the SUDDEN penny pinching?
     
    joecool6101, Sep 27, 2008 IP
  6. kinitex

    kinitex Well-Known Member

    Messages:
    485
    Likes Received:
    3
    Best Answers:
    0
    Trophy Points:
    105
    #6
    They have been doing this for as long as I can remember.
     
    kinitex, Sep 27, 2008 IP
  7. dimaks

    dimaks Peon

    Messages:
    53
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #7
    well maybe because ex-rate is not a fixed thing.. it changes quiet very often.. everyday i guess.
     
    dimaks, Sep 27, 2008 IP
  8. joecool6101

    joecool6101 Well-Known Member

    Messages:
    2,589
    Likes Received:
    68
    Best Answers:
    0
    Trophy Points:
    135
    #8
    I realize this.

    Which is why i said 2 weeks ago it was par with actual exchange rates. But now they screw you over 4 cents on every dollar now.
     
    joecool6101, Sep 27, 2008 IP
  9. dimaks

    dimaks Peon

    Messages:
    53
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #9
    whoa scary thing on the exchange rates.
     
    dimaks, Sep 27, 2008 IP
  10. wussadotcom

    wussadotcom Banned

    Messages:
    1,168
    Likes Received:
    43
    Best Answers:
    0
    Trophy Points:
    0
    #10
    Not surprised at all. Paypal is still runned by human.~
     
    wussadotcom, Sep 27, 2008 IP
  11. eddy2099

    eddy2099 Peon

    Messages:
    8,028
    Likes Received:
    568
    Best Answers:
    0
    Trophy Points:
    0
    #11
    I am not sure if you known but the exchange rates have been quite volatile over the last several weeks and the US dollars have been on a yo-yo. Since you know that Paypal withdrawal is not instantaneous, they are probably just protecting themselves in case the currency swings the other way. Of course, no matter what, Paypal would still have to endure a risk factor in the currency exchanges. The 2.5% foreign exchange fees is merely to pay for the necessary expenses involved in currency exchanges and also to protect it if the currency swings the wrong way. Paypal has no control over the global currency mechanism. In Paypal's case, their exchange rate is govern by the banks it uses.

    Of course, Paypal could opt to not to fix an exchange rate at the time of your withdrawal and only let the banks determine it when they deposit the money in your account. That way, the exchange rate would be more closer to market trend but you would not know how much you would be taking in local currency. Besides if you been through the banks and money changers, you would realized that exchange rates they use varies from store to store so it is not possible to compel paypal to use the exchange rate of the bank you always use to do exchanges from.
     
    eddy2099, Sep 27, 2008 IP
  12. Fiverscripts

    Fiverscripts Moderator Staff

    Messages:
    1,839
    Likes Received:
    42
    Best Answers:
    1
    Trophy Points:
    370
    #12
    Very true paypal do scam a bit but they do have to make money somewhere dont they?

    Mattlav
     
    Fiverscripts, Sep 28, 2008 IP
  13. joecool6101

    joecool6101 Well-Known Member

    Messages:
    2,589
    Likes Received:
    68
    Best Answers:
    0
    Trophy Points:
    135
    #13
    They make tons of money everywhere..

    3% fee just for receiving the money.. fee for transferring to bank account if not over $150 ... 4% fee for converting.. Shit soon there going to have a fee just for logging into your account.

    They are LOADED I dont want to hear this BS about they need to protect them selves.. its all a money grab.
     
    joecool6101, Sep 28, 2008 IP
  14. kush86

    kush86 Well-Known Member

    Messages:
    2,507
    Likes Received:
    40
    Best Answers:
    0
    Trophy Points:
    160
    #14
    I can't believe I just read this whole thread.

    1) The exchange rate goes up and down everyday all day.
    2) Paypal has a 2.5% exchange fee.

    Get over it, if you don't like how paypal run their business use alertpay or moneybookers.
     
    kush86, Sep 28, 2008 IP
  15. eddy2099

    eddy2099 Peon

    Messages:
    8,028
    Likes Received:
    568
    Best Answers:
    0
    Trophy Points:
    0
    #15
    If all you can do is complain about Paypal and are not happy about the fees you pay then just do yourself a favor and terminate your paypal account and use someone else who would be more accommodating to your concept of reality.

    Actually, Paypal is not a charity and at the same time, running a business such as theirs is not cheap. Their fees are pretty much bottom of the barrel and they can only survive because of the volume which goes through them.
     
    eddy2099, Sep 28, 2008 IP
  16. mixke

    mixke Prominent Member

    Messages:
    5,917
    Likes Received:
    590
    Best Answers:
    0
    Trophy Points:
    310
    #16
    PayPal charges more fees than Google. We cannot do anything about it. They own the site, and they have their rules. Complaining about these things won't help, as it's already very famous and being used by millions of people all around the world.
     
    mixke, Sep 28, 2008 IP
  17. eddy2099

    eddy2099 Peon

    Messages:
    8,028
    Likes Received:
    568
    Best Answers:
    0
    Trophy Points:
    0
    #17
    Google core business is not running their Google Checkout besides the checkout is a very basic payment processor service which is different from Paypal's business. On top of that, Google can afford to make losses in order to gain market share.
     
    eddy2099, Sep 28, 2008 IP
  18. alexa_s

    alexa_s Peon

    Messages:
    1,077
    Likes Received:
    41
    Best Answers:
    0
    Trophy Points:
    0
    #18
    ... if you honestly imagine that either of them is any better! :eek:
     
    alexa_s, Sep 28, 2008 IP
  19. kush86

    kush86 Well-Known Member

    Messages:
    2,507
    Likes Received:
    40
    Best Answers:
    0
    Trophy Points:
    160
    #19
    Alertpay is much better and safer, its only a matter of time before alertpay be #1 in the industry.
     
    kush86, Sep 28, 2008 IP
  20. alexa_s

    alexa_s Peon

    Messages:
    1,077
    Likes Received:
    41
    Best Answers:
    0
    Trophy Points:
    0
    #20
    Yes, I'm using AlertPay myself now, and am fairly pleased with them so far, this may well be right.
     
    alexa_s, Sep 28, 2008 IP