$%*& Pay Pal

[Claytron]

Hey, is it just me, or does it seem like everytime i by some TF's internationally, which is very frequent, the exchange rate is always a a few fractions on a cent lower than the current exchage rate i'm being quoted from online websites.

This is happening to me everytime i buy something, is it another way for paypal to screw us or am i over looking something???

[blackie]

thats how paypal make their money ;)

[MV75]

This is how it works.

There are two basic levels of exchange rate.

Buy
Sell

What they show on the sites and news as the exchange rate is the average of the two because it's easier reporting.

The rate is thus different when you do an actual transaction, by how much depends on which way you are currency converting.

[jaydisc]

Paypal also includes a 2.5% fee in their conversion. If you fund your transaction with your credit card using the seller's native currency, you will be assessed whatever the buy rate is in 24-72 hours when the money is actually debited from your card. Also, many banks separate out their conversion fee, which in my case (NAB) is 2%. Thus, I've found the difference between PayPal and my bank's conversion to be relatively minimal. Regardless, I always fund with my credit card for Visa's purchase protection anyway.... way better than PayPal's.

[GoktimusPrime]

Forgive my ignorance, but why use Paypal at all? Why not pay directly with a credit or debit card? I'm just asking out of curiosity because I vaguely recall other people complaining about PayPal before, and I'm I'm wondering what advantage it offers that would be worth the apparent grief.

Thanks. :)

[Eruntalon]

Forgive my ignorance, but why use Paypal at all? Why not pay directly with a credit or debit card? I'm just asking out of curiosity because I vaguely recall other people complaining about PayPal before, and I'm I'm wondering what advantage it offers that would be worth the apparent grief.

Thanks. :)

Ebay (if purchasing from Ebay that is) requires the use of PayPal as a method of Payment on all auctions, with PayPal being affiliated with Ebay.

[SGB]

Ebay (if purchasing from Ebay that is) requires the use of PayPal as a method of Payment on all auctions
Not anymore. Not for local auctions anyway. The ACCC very recently forced ebay to stop making PayPal mandatory.

[Claytron]

And with Pay Pal you have insurance if you don't receive your item

[Lint]

also does not require you to directly expose your credit or bank details and transfers payments instantly (to other paypal accounts) instead of waiting X business days for bank transfers.

[jaydisc]

PayPal is the credit card processor for many merchants and every eBay seller. It is more difficult to find a seller of Transformers that accepts credit cards directly than it is to find one that accepts Paypal.

[langzixinxin]

It's called *spread*. When you pay in paypal, they help you do the exchange, they have to get paid from the service.

This is true if you go to bank for some foreign currency. Commonwealth bank, too, will charge a spread.