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PayPal foreign exchange rates

minty - 2012-01-11 02:15

I have noticed PayPal are charging way above the correct rates for foreign exchange. I have an app on my iPhone which gives up to date exchange rates, which PayPal are far higher than.

For instance, I recently purchased an item from America. It cost me 75 dollars, which works out at 58 euro. But Paypal charged me over 62 euro. I understand they have to make money, but this is a rip off.

I emailed Paypal and got the usual story. "We strive to be competitive blah blah blah" just seems like they are screwing there customers.

docp - 2012-01-12 05:46

http://en.wikipedia.org/wiki/PayPal

Scroll down for an idea of how it operates in individual countries...

Changing policies across the globe are making Paypal a bit complex and expensive to use in certain (Non US) zones either due to the fees & commisions or requirements that every single payment received however small be withdrawn immediately (with a high charge for this transfer)

While this doesn't affect large transactions ...smaller/courtesy transactions are becoming a bit of a pain for a service provider/seller. It still ranks high as the safest way for a buyer to complete a purchase.....so the grass is greener on the other side

docp - 2012-01-12 06:32

Originally Posted by Minty:
PayPal are charging way above the correct rates for foreign exchange.

The squeeze is based on the fact that they are providing a service and charge for every bit of service.

If you receive money a commission is charged.

If you convert from currency A to B a commission is charged

If you change your mind and want to convert back from currency B to A...you are charged again

Reversal of charges - you get a refund...paypal doesn't charge ...but the card guys do

 

So you may want to assume that if you are selling something you may want to keep aside 10% for all these invisible payments...

 

Waiting for Barter.com or LetsTradeOurJunk.com ...a return to the primitive ways of 'mutual exchange' commerce as an interesting variant   ( I am proud that S2G already has a 'Trade' section )