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Avoiding Paypal's Exchange Rate - Page 2

post #16 of 23
Quote:
Originally Posted by odoreater
They tell you what rate they are going to use, but they don't tell you that it's different from the market rate or how different it is.
Quote:
If your transaction involves a currency conversion, it will be completed at a retail foreign exchange rate determined by PayPal, which is adjusted regularly based on market conditions. This exchange rate includes a 2.5% spread above the wholesale exchange rate at which PayPal obtains foreign currency, and the spread is retained by PayPal. The specific exchange rate that applies to your multiple currency transaction will be displayed at the time of the transaction.
http://www.paypal.com/cgi-bin/webscr...y-fees-outside From what I've gathered based on past experiences, the 2.5% overhead is accurate. I used xe.com to get the most up-to-date conversion rates. Frankly, I think Paypal charges too much for its services, on top of the interests/profits they make on your money while it is in their accounts. There used to be a few others, but they effectively were all killed the moment eBay decided to buy Paypal, which in essence gave them a vertical monopoly on top of the horizontal monopoly eBay has already held. Now, if you sell on eBay and accept Paypal, you're looking at about 10% transaction fee total. THAT, is profit!
post #17 of 23
Thread Starter 
Quote:
Originally Posted by DarkNWorn
http://www.paypal.com/cgi-bin/webscr...y-fees-outside

From what I've gathered based on past experiences, the 2.5% overhead is accurate. I used xe.com to get the most up-to-date conversion rates.

Frankly, I think Paypal charges too much for its services, on top of the interests/profits they make on your money while it is in their accounts. There used to be a few others, but they effectively were all killed the moment eBay decided to buy Paypal, which in essence gave them a vertical monopoly on top of the horizontal monopoly eBay has already held. Now, if you sell on eBay and accept Paypal, you're looking at about 10% transaction fee total. THAT, is profit!

Well, there you go then.
post #18 of 23
The problem with PayPal is that it's really the only game in town for fast and convenient transfers. Maybe when Google comes up with a competing service there will be pressure to lower fees and offer better conversion rates.
post #19 of 23
Quote:
Originally Posted by odoreater
It's not really the fact that they do it that bothers me, it's the fact that they don't tell you that they do it. Paypal has a lot of "hidden fees" in a lot of areas. You want to send money? They hit you with a fee. You want to receive money? Fee. You want to transfer money? Fee. You buy something? Fee. You sell something? Fee. What makes it more annoying is that paypal is owned by ebay. So, they can't even give you a break and transfer money into foreign currencies for you for free, they have to take a fee on that too, and a nice one at that.

I have never been charged for sending money. Nor have I been charged for transferring money to my bank account, and I haven't been charged for buying anything. Only time I get charged is when I receive money. Sure the fee sucks, but it's an easier method to receive money than anything else at present.
post #20 of 23
Thread Starter 
Quote:
Originally Posted by mrchapel
I have never been charged for sending money. Nor have I been charged for transferring money to my bank account, and I haven't been charged for buying anything. Only time I get charged is when I receive money. Sure the fee sucks, but it's an easier method to receive money than anything else at present.

How much business do you do with paypal? Do you have the free account that they give you if you do less than $500 per month, or do you have the pay account that you have to use if you do more than $500 per month?

EDIT: Btw, there was some hyperbole involved in my statement - they probably don't charge money for all that, but I know that I pay a lot in fees every month when I do my ebay accounting. They definitely charge when you receive money and they definitely charge to transfer into a different currency.
post #21 of 23
Quote:
Originally Posted by odoreater
How much business do you do with paypal? Do you have the free account that they give you if you do less than $500 per month, or do you have the pay account that you have to use if you do more than $500 per month?

EDIT: Btw, there was some hyperbole involved in my statement - they probably don't charge money for all that, but I know that I pay a lot in fees every month when I do my ebay accounting. They definitely charge when you receive money and they definitely charge to transfer into a different currency.

I have a Business Account with them. And yes, you are charged for receiving and for transferring into a different currency irrespective of your account type.
post #22 of 23
I checked the XE conversion for $ to pounds on the 13th and the conversion my (USAA) credit card charged me for my EG purchase and found only a 1.1% spread. That is OK with me.

Perry
post #23 of 23
Thread Starter 
Quote:
Originally Posted by pkincy
I checked the XE conversion for $ to pounds on the 13th and the conversion my (USAA) credit card charged me for my EG purchase and found only a 1.1% spread. That is OK with me.

Perry

That's not bad - less than what paypal charges.
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