PayPal Currency Conversion Rates

[DNBro]

Anyone having any idea about how paypal do the euro -> dollar conversion.

I have checked using xe.com currency tool and paypal, but paypal giving slightly low rates

Xe.com: 1 Euro = $1.27544
Paypal: 1 Euro = $1.25331

Why such, any idea?

Thanks

 

[dnb8]

Because they have their "spread" already included in this price

 

[DNBro]

Because they have their "spread" already included in this price

Thanks for making it clear.

Anyways I have learned good lesson now, transaction involving EUROs its better to get the amount directly in bank account instead of receving them in paypal and then again transfering to bank account. in my case i followed second one.

by doing first one, can save ~$30.00 each on a $1000.00 transaction.

 

[Traveler]

Paypal is going to do what is their best interest. I live in Europe now and when I take money out of my US bank account, it takes a few days before the transaction hits my account. No matter what xe.com says when I withdraw the money, somehow my bank finds a lower exchange rate when it takes the money from my account.

But anyway, you did find the solution. Don't transfer money between banks in a foreign currency and not expect to get shorted.

 

[thebutler]

Every currency

They do the same thing with EVERY currency exchange its just not a euro/dollar thing.

 

[shockie]

they usually take a 2.5% fee for conversions, and it's normal to take these fees. if you're dealing heavily with euro/dollar and don't need the conversion, then just open up an bank account with that currency.

 

[DNBro]

in my case, now i'm compelling to pay coversion fee twice nearly 5.5 to 6% fee, first euro-> dollar-> indian currency.

 

[shockie]

wow, you should try to convert just directly to indian... could you somehow bypass the dollar conversion, or just get paid in dollars to begin with?

 

[DNBro]

wow, you should try to convert just directly to indian... could you somehow bypass the dollar conversion, or just get paid in dollars to begin with?

It was mistake and i was not unware of about such double rates. anyways its a learning exp.

it was sedo transaction, payment received on euro in paypal account.

 

[wot]

Just a rider to this re exchanging currency- NEVER change money at any hotel- they have THE worst rates. This applies anywhere in the world. :td: