How paypal count exchange rate?

Derek · #1 (**permalink**) 03-14-2008, 07:25 PM

I provide service for a person. He pay me 1 euro and I was happy. I convert the money to dollar and get 1.49 dollar. When I check exchange site, it say the rate is 1.55. Why paypal so unfair on the rate?

hwang · #2 (**permalink**) 03-15-2008, 11:34 AM

Paypal actually changes an extra 2.5% fee on all currency exchange transactions. That's the reason why you observe the rate differential between the market rate.

JJenny · #3 (**permalink**) 03-15-2008, 03:29 PM

You can check out the page here [Only registered and activated users can see links. ]

Derek · #4 (**permalink**) 03-15-2008, 03:54 PM

Thx friends. I understand now. I better withdraw in euro to save on exchange fee. It is eating up my money. Lucky the payment amount small.

titaniumhijau · #5 (**permalink**) 03-22-2008, 01:12 PM

Quote:

Originally Posted by Derek

I provide service for a person. He pay me 1 euro and I was happy. I convert the money to dollar and get 1.49 dollar. When I check exchange site, it say the rate is 1.55. Why paypal so unfair on the rate?

Some people maybe its unfair for some people. But its nothing we can do if we use paypal. We need to admit and accept it. I also angry about that. But i start to understand.

zymon_king · #6 (**permalink**) 10-04-2008, 07:52 PM

Hi friends, paypal may charge any fees for transfer money to our bank account? as well they transfer exact exchange value ???

hwang · #7 (**permalink**) 10-04-2008, 08:00 PM

The fact is... their exchange rate is one of the worst that I've encountered. Just compare the exchange rate with the current forex market rate and you will see the difference.

Anyway direct bank withdrawal should be free (but only for certain countries).

liowkc · #8 (**permalink**) 10-05-2008, 05:53 AM

Paypal's exchange rates are probably the worst ( credit card exchange rates are better) so the golden rule is to keep conversion to the bare minumum.

hwang · #9 (**permalink**) 10-05-2008, 10:53 AM

I just wonder how much they earn in just a year. First the exchange rate, then the interest that they earn for every dollar in each and every individual account, and next the fees...

liowkc · #10 (**permalink**) 10-06-2008, 05:46 AM

A lot of money, a lot of money. And the reason I stay with them is 2 fold - reliable and widely accepted but most important reason: no choice

zymon_king · #11 (**permalink**) 10-16-2008, 09:18 AM

Paypal didn't tranfer the exact exchange value, they reduce nearly 4% of the current exchange value. I think it is the reasonable commission.....

hwang · #12 (**permalink**) 10-16-2008, 03:34 PM

Reasonable commission? Wow...It's the most terrible which I have seen. One word.... They are taking advantage of users like us knowing that *you* have to use it somehow and no other choice.

liowkc · #13 (**permalink**) 10-17-2008, 07:54 AM

4% is definitely not reasonable! Credit card sharks only mark up about 1 to 2% the max. Perhaps there should be a legal probe on paypal's forex transactions.