11 {{ upvoteCount | shortNum }}
11 {{ upvoteCount | shortNum }}

What's with Paypal's conversion rate?

by TheEliteWarrior
9 replies
I was going to fund my LeadImpact account through Paypal but the currency conversion rate through Paypal is much higher!

Through Paypal

200USD to HKD= $1,608.85 HKD


Through online conversion sites

200USD = around 1552.04 HKD


Although the difference isn't huge but a penny saved is a penny earned.

Would trying another conversion option through Paypal be worth it? That is :

"Bill me in the currency listed on the seller's invoice.

I will not know which foreign exchange rate has been applied to this transaction until I receive my card statement from my card issuer. I acknowledge that by choosing this option, my card issuer will determine the foreign exchange rate to apply to this transaction, and that I will not be informed of the foreign exchange rate or any additional foreign exchange fees applied until I am billed by my card issuer."

Would my card issuer give a more correct conversion rate?
#conversion #paypal #rate
  • Profile picture of the author MarcCPASAW
    In my experience all the rates are inflated whether it be Paypal or a Card Issuer. If you do find a fairer conversion rate please post where.
    {{ DiscussionBoard.errors[8057431].message }}
    • Profile picture of the author CandyxLand
      Paypal seriously sucks with this. I regularly buy things in other currencies and I get slammed. The best thing is to have an account in HKD to begin with, but you're always going to lose some money in the transaction. Such is the life of digital currencies.
      {{ DiscussionBoard.errors[8058262].message }}
  • Profile picture of the author Daniel Thomas
    What's the opposite rate of conversion?
    Signature

    $75     CPA >> DigiPartners Affiliate Program
    {{ DiscussionBoard.errors[8058365].message }}
    • Profile picture of the author TheEliteWarrior
      Originally Posted by TomGreen View Post

      What's the opposite rate of conversion?
      Paypal's rate

      207.32 US Dollar = hkd1,608.85


      Online conversion

      USD200= 1552.04 HKD

      The 200USD is for a LeadImpact deposit.
      {{ DiscussionBoard.errors[8058426].message }}
  • Profile picture of the author PPC-Coach
    Yes they do inflate their rates. Just another way to make some money.
    Signature
    {{ DiscussionBoard.errors[8058529].message }}
    • Profile picture of the author TheEliteWarrior
      Originally Posted by PPC-Coach View Post

      Yes they do inflate their rates. Just another way to make some money.
      Would paying via credit card be a better idea?
      {{ DiscussionBoard.errors[8061356].message }}
  • Profile picture of the author RosuC
    PayPal is screwing with all exchange currency, for example with EUR/USD they have the worst exchange rate ever, so if I have the currency in USD and I try to buy something from Europe I prefer to use a Debit Card instead of PayPal - they are taking like 15% transfer fee from USD to EURO - no use.
    {{ DiscussionBoard.errors[8059197].message }}
  • Profile picture of the author mikekoltas
    It is very common to get charged 3-4 % for these types of transactions , not just by paypal , but other CC companies , I also see this when I travel out of the US that banks will generally chage a flat fee or they have a spread at what they buy and sell at . Keep in mind that the banks are taking on currency risk when doing this . If it was more than 5 % , i think it would be fishy .
    {{ DiscussionBoard.errors[8059571].message }}
  • Profile picture of the author BrianCampbelldotcom
    All banks charge ridiculously high conversion rates. They will typically charge 4-6% above what the spot rate is. When you look on a site like xe.com at the current rate, they are giving you the interbank rate, not the rate that the banks charge you. If you're not a bank, you don't get that price.

    This is simply how it works. I don't believe paypal is charging any more than Bank of America does. All banks have slightly different rates. If you want a particular amount of currency, you need to charge for it in that currency. Any time you convert from one currency to another, you're going to pay the bank 4-6%. It's the price of doing business abroad.
    Signature
    {{ DiscussionBoard.errors[8061428].message }}

Trending Topics