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Thread ID: 119449 2011-07-23 22:31:00 PayPal exchange rate --Wolf-- (128) PC World Chat
Post ID Timestamp Content User
1218638 2011-07-23 22:31:00 Can someone explain how the exchange rate in Paypal works please?

Bought something on ebay in USD, went to purchase with Paypal and noticed this:

1 NZD = 0.793703 USD

And it said it was current (checked again today and same thing)

From what I understand, they add 2.5% of fees on top or something like that, but that still doesn't bring it down to 79 from this (current as of time of this post)

1.00 NZD = 0.864700 USD

I did send them an email, but am curious as I don't actually use PayPal that much, but at that exchange rate I'm paying quite a lot more and maybe there's something I'm missing about how their exchange rates work.
--Wolf-- (128)
1218639 2011-07-23 22:40:00 I noticed the same thing yesterday :( :(

1 NZD = 0.793703USD
Zippity (58)
1218640 2011-07-23 22:52:00 I'd be happy to clarify how our rates are quoted. Please note that
PayPal’s exchange rates are updated daily.

Here’s how we set our exchange rate:

* We receive a wholesale rate quote from our bank twice a day and
add 2.5% to determine the retail foreign exchange rate to apply to
transactions that involve a currency conversion.
* Our currency exchange rates are competitive with conversion rates
used by banks and by currency exchanges.
* When you withdraw money from your PayPal account to your local
bank account, we automatically convert the money into the local currency
at the time of the withdrawal request.

Here’s how to view the current exchange rate:
1. Go to www.paypal.com and log in to your account.
2. Click ‘Profile’ near the top of the page.
3. Click ‘Currency Balances’ under ‘Financial Information. ‘
4. Enter your information and click ‘Calculate.’

Visa or MasterCard typically adds 1% to provide a currency exchange.
Your issuing bank typically adds between 1% and 3% to provide a currency
exchange. The total cost through PayPal is usually less than many
international multi-currency bank transfers.

For more information on the exchange rate with international payments,
click ‘Legal Agreement’ at the bottom of any PayPal page and then choose
‘User Agreement for PayPal Service’ under ‘For All Users.’

PayPal strives for improvement and your support is appreciated.

Sincerely,

The hell? What bs.

Lets see.

2.5% PP + 1% Visa + 3% max my bank = 6.5%.

6.5% of 0.864700 = 0.0562055

0.864700 - 0.0562055

= 0.8084945

???
--Wolf-- (128)
1218641 2011-07-23 23:05:00 I bought something on Friday using Paypal from the US and the exchange rate was .834069.
:)
Trev (427)
1218642 2011-07-24 01:35:00 Somehow, I think that an incorrect exchange rate was listed/used yesterday :( Zippity (58)
1218643 2011-07-24 01:50:00 As of 2 seconds ago:

PayPal Conversion Rate as of 24/07/2011: 1 New Zealand Dollar = 0.793703 U.S. Dollars

Yet the correct rate is 0.864
--Wolf-- (128)
1218644 2011-07-24 02:02:00 Probably rounding, i.e. the no. of decimal places (both for currency, and percentage cut from Bank/VISA), that yield different accumulated final exchange rate. Also XE com seems to have slightly different exchange rate that some NZ banks. Unless Paypal has their "own" exchange rates, but so do banks (it seems), depending how the exchange is implemented, i.e. cash, online, bank transfers, etc. I have seen similar questions in other forums, as much as I have seen slightly different exchange rates from different sources. kahawai chaser (3545)
1218645 2011-07-24 03:22:00 When banks or other large economic institutions deal on your behalf, just remember they own the pitch, the bat, ball and stumps as well as providing the umpires and writing the rules. You are merely there to pay the money. Of COURSE they will act in your interests at all times; ~ ~ just ask them. ;) R2x1 (4628)
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