GBP to $ conversion

Wingerr · Jun 7, 2004

I'm getting an item from ebay and paying via paypal, with the item being listed in GBP; just wondering if anyone knows how paypal gets their conversion rate.
Do they add anything extra for themselves in the rate?

The rate they currently list shows
PayPal's Exchange Rate as of Jun. 7, 2004:
1 U.S. Dollar = 0.530092 Pounds Sterling

on www.xe.com, they show
1.00 USD = 0.543128 GBP
United Kingdom Pounds.

Is it supposed to be exactly the same, or do you need to allow for some wriggle room?

maverick · Jun 7, 2004

I posted about a similar problem before. But mine was from USD to HKD for withdrawal. It seems that paypal charges about 3% for every conversion! That's way too steep... so I'm trying to open a US account to get around that....

Wingerr · Jun 7, 2004

That seems like it accounts for the about 2.5% difference. Is that official policy, or just something they sneak in, I wonder?

GJW · Jun 7, 2004

From the PayPal Fees page:
* If your transaction involves a currency conversion, it will be completed at a retail foreign exchange rate determined by PayPal, which is adjusted regularly based on market conditions. This exchange rate includes a 2.5% spread above the wholesale exchange rate at which PayPal obtains foreign currency, and the spread is retained by PayPal. The specific exchange rate that applies to your multiple currency transaction will be displayed at the time of the transaction.

Why don't you contact the seller and see if he will accept payment in USD? Then his bank can handle the conversion which might be free for him.
Or offer him 1-2% -- you'll still be ahead.

Wingerr · Jun 8, 2004

Ah, that explains it-

I already made the payment, so it's too late- I'll see if I can do that if I have any other occasions to pay in other currencies.

GBP to $ conversion

Wingerr

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maverick

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Wingerr

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GJW

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Wingerr

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