Paypal Withdrawal: Paypal Showing Wrong Exchange rate

Hi. I'm from India, and while withdrwaing my first check from Paypal (just completed the limit of $150), I noticed that the exchange rate for Dollar to Rupees was:

$1 = 43.07 Indian Rupees

While the actual rate nowadays is:

$1 = 44.37 Indian Rupees

Now why should I suffer a loss like this? And what do I do about it?

 

Banks have different rates for buying & selling and rates do fluctuate hourly and daily. What was the buy rate the day before Paypal printed the cheque? This seems to be a minor difference (based on my experience with US-Canada-Mexico exchange rates) and I doubt there is anything you can do about it. You could ask them how they determine their rate.

 

also paypal takes a fee for exchanging

 

You cannot do anything. Thats what you have to bear

 

Basically whatever the exchange rate for that time / day when the check was cut is what you will be given. Usually they are batched so you might not have the exact time when to ask for a check but hope the exchange rate is still up when the batch is ran

 

paypal's dollar to rupee exchange rate is always lower by 2-3% than the rates offered by other banks. there's nothing you can do about it

 

Welcome to the world of Foreign Exchange. Yup, Paypal does levy a charge for foreign exchanges and their bank would dictates the rates they use. Different banks especially from different countries would use a different rate of exchange.

 

Thanks evryone for the replies. I guess I have no other option then. I thought I might wait before withdrawing the cheque, maybe contact customer support...

but now I'l withdraw the cheque right away, before Dollar slides any further...

 

Paypal gets also a good and full cup of aditional money by giving you that bad exchange rates, just like a street cambist, that should not be the way to do business ( since they are already deducting a higher fee than regular merchants when using a premier/business Paypal account ), but Paypal does what they want, once you sign-up you agree to all upcoming nightmares which ones will arrive to you without your knowledge, sooner or later it will happen there.
Thank you, see you soon.

 

You can change the dollars with some indians who wants paypal funds,try to start a thread in the service section.

 

Hopefully, google checkout will end paypal's monopoly and force it use more ethical business practices ...

 

Google Checkout haves a problem:
It is not internationalized like Paypal, so I think Paypal will be the ruler for many Years more to come unless Google Inc. invests more money into getting global and not staying only local ( USA ).
Thank you, see you soon.

 

O thats bad..wonder why no other company seizes the wonderful opportunities in the international payment processing business online. The unethical profits of paypal should end!

 

Well, Paypal charges are amongst the lowest in the industry so they are actually not making a lot from it. Other payment processing businesses have been around for way longer but they charge a lot more than Paypal.

You know, Paypal is a For-Profit Company, which means that it would need to be able to make a profit from whatever it does so as to be able to finance its business and pay their staffs. There is probably a lot of things which happens at the back office to ensure that payments get paid to the right person.

It will take awhile to unseat Paypal because the business need to have very deep pockets and they need to be able to accept razor-thin profit margins and must have a lot of connections and influences with the local government of each of the country it wants to deal with in the same level as Paypal.

 

Suppose I withdraw today and the rate is 44.20 $ , will I not get it at that rate ?

 

Well, you will get the rate based on what paypal site would show you when you do the funds withdrawal. That rate is confirmed as it is accurate at the time of the transfer.

 

You will get a rate about 2.5% lower

 

What is the best rate Paypal till date, any idea ? I hope something closer to the exchange rate [ $ > INR ].

 

It varies day to day and you really cannot predict which day would give you better rates.

Generally speaking, in an open economy which is controlled by supply and demand, rates between banks or between other foreign currency exchange bureaus would never be the same. Banks generally do not have good rates compared to changing in the streets. You are bounded by the bank which Paypal use. Also according to http://www.paypal.com/cgi-bin/webscr?cmd=_display-fees-outside , there is the 2.5% fees which are levied on each transfer so you have to account to that.

 

You're wrong. Paypal never shows the accurate rate. Its rate is always lower than the actual exchange rate in the market. DNK is probably right when he says that its around 2.5% lower