was importing some silver via ebay and went to pay...
then realised that the conversion rate looked pretty bad.
I was aked to pay £597.25 for $950.
Rang my bank, todays rate with them is £535 +£2 transaction fee!
that means paypal is trying to make £60 just off conversion scamming!
Thought i'd warn you all and show you how to avoid it!
when you go to pay just before you confirm the amount you can see the local currency amount(after paypals exchange)
underneath that is "other conversion options"
and then select the option
I noticed the same swindle.
They will usually delay updating their exchange rate depending on what gets them the most of your money on any given transaction.
Not to mention, ebay will also display an approximate equivelant in your currency of choice during auctions which are usually way off from what paypal will ultimately wind up charging to your account. It's like the old 'bait and switch' and they are operating in collusion.
Eventually I started doing exactly as you suggested but billing it directly to my credit card in the auctions listed currency right at the end to get a real real-time bank exchange rate and it only took maybe 2 transaction before paypal suspended my use of my credit card for use in settling auctions in foreign currencies. I wrote them a scathing letter accusing them of their crooked usury exchange 'bait and switch' ghestapo tactics. They admitted that they suspended my credit card exactly because i was using bank exchange rate instead of paypal. I threaten that not only will i relay my negative experiences to everyone i know but will also no longer be using neither ebay and/or paypal and they promise to re-enstate my C-card but it takes nearly 3 months and i had to make-good on my threats. Just stop using paypal for a few hefty transactions and they get the message quickly!
Can't believe they did that... although the way all the corporations are going, nothinig should suprise us.
all hiding behind their 9,000 page terms of service
Back in the early days of PayPal they had little to no fees associated with currency conversion. And because of this, a lot of abuse developed. Basically a segment of people were using their PayPal account like a Forex account to speculate on currency moves, which was not really the intended use of the account. I'm not privy to all the specifics, but I know that there was a window of abuse that was possible if you played the system right. Anyway, to curtail this practice, they decided to insert a fee to make the exchange rate less favorable to speculate on. (The extra profit for them I'm sure was a nice incentive as well.)
In general, PayPal is a pretty immoral company, but at least in this area, there was some reasoning behind their actions.
I really liked the article, and the very cool blog
I liked the old paypal when I would get 1.5% back on all debit card transactions, INCLUDING cash advances. get a $400 advance, get $6.00 back. Needless to say, that didn't last long,,,