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Currency Conversions

Peter WadePeter Wade Posts: 1,672
in The Commons

I've been keeping an eye on the exchange rate since the pound has been dropping after brexit, but recently I had a problem with my credit card so I am using PayPal for now and that showed something interesting. On my last order the XE online currency converter was showing a bit over $1.22 to the pound but PayPal was giving me just a bit over $1.81 to the pound. I don't know what rate I ws getting when I was using my credit card but I wonder if this is typical of pound to dollar conversions or just PayPal making extra profits.

Comments

  • SPACECHIMPSPACECHIMP Posts: 212

    I use paypal and my credit card and notice paypal is really expensive with the currency conversion since brexit, way above the credit card rate, so  I am trying not to use it now I think they are just charging to much. Credit card is around $1.26 to the pound now.

  • ChoholeChohole Posts: 33,604

    PayPal has always tended to be slightly more expensive when changing between currencies.   but there again some banks do charge for currency conversions as well,  which is one reason why a lot of us from over this side of the pond started buying ourselves gift certs, pre PayPal, so we only got one bank charge rather than lots of individual purchases.

  • TangoAlphaTangoAlpha Posts: 4,587

    As a PA it works in my favour for income right now (in the last month $1 has gone from 74p to 80p), but as a customer, stuff is getting a lot more expensive (£1 only got me $1.18 last week, compared to $1.29 a month ago). That's PayPal. Credit card gave me $1.23 for £1 a month ago, so allowing for daily fluctuations (none of these transactions happened on the same day), and the low number of data points, it's hard to say with any certainty but Paypal doesn't seem hugely out of step. But whenever I do an online currency check, it's always massively different to the rate that shows up on the transaction, no matter who it's with. Consequently I think it's only useful for seeing the trend up or down, not as a guide to what you'll actually pay or get.

  • Richard HaseltineRichard Haseltine Posts: 108,713

    Most payment processors will add a fee - either by tweaking their exchange rate (as PayPal does) or as a separate item charged to the payment method. I can't remember what PayPal charges but it should be in their terms.

  • Peter WadePeter Wade Posts: 1,672

    When I use my credit card my bank makes things confusing. When I look at my statement I have charges with Daz on them and other small charges that just say NON-STERLING TRANSACTION with nothng to say what they are for. I assume these are extra charges assoctiated with the Daz ones but there is no way I can see to link them. But considering what PayPal is going once I get my replacement card I'll set it up for Daz.

  • glaseyeglaseye Posts: 1,312
    edited October 2016

    As for me, the rate paypal uses ($ to Euro ) is about 0.04; If XE.com shows an exchange rate of $1.08 to the Euro, they usually charge me $1.04 to the Euro. And mind you, AFAIK the XE rate is an average rate between buying and selling (letting? don't know the exact terms :) )  so in that sense, paypal doesn't seem that bad to me.....

    Post edited by glaseye on
  • Richard HaseltineRichard Haseltine Posts: 108,713
    Peter Wade said:

    When I use my credit card my bank makes things confusing. When I look at my statement I have charges with Daz on them and other small charges that just say NON-STERLING TRANSACTION with nothng to say what they are for. I assume these are extra charges assoctiated with the Daz ones but there is no way I can see to link them. But considering what PayPal is going once I get my replacement card I'll set it up for Daz.

    Yes, that's how my card handles it - though I geenrally make few enough transactions that it's immediately clear which pair belong together. The bank's site should tell you how the charge is calculated, if it isn't a simple percentage then it's probably worth buying a Gift Card in one go and then using that, so that there's only one exchange operation and fee.

  • Peter WadePeter Wade Posts: 1,672
    Richard Haseltine said:
    Peter Wade said:

    When I use my credit card my bank makes things confusing. When I look at my statement I have charges with Daz on them and other small charges that just say NON-STERLING TRANSACTION with nothng to say what they are for. I assume these are extra charges assoctiated with the Daz ones but there is no way I can see to link them. But considering what PayPal is going once I get my replacement card I'll set it up for Daz.

    Yes, that's how my card handles it - though I geenrally make few enough transactions that it's immediately clear which pair belong together. The bank's site should tell you how the charge is calculated, if it isn't a simple percentage then it's probably worth buying a Gift Card in one go and then using that, so that there's only one exchange operation and fee.

    I keep thinking of getting gift cards, but worry it'll just lead me into spending even more. I might give it a try though and see if I can exercise some restraint (at least as much as I'm doing now (which should really be more)).

  • Richard HaseltineRichard Haseltine Posts: 108,713
    Peter Wade said:
    Richard Haseltine said:
    Peter Wade said:

    When I use my credit card my bank makes things confusing. When I look at my statement I have charges with Daz on them and other small charges that just say NON-STERLING TRANSACTION with nothng to say what they are for. I assume these are extra charges assoctiated with the Daz ones but there is no way I can see to link them. But considering what PayPal is going once I get my replacement card I'll set it up for Daz.

    Yes, that's how my card handles it - though I geenrally make few enough transactions that it's immediately clear which pair belong together. The bank's site should tell you how the charge is calculated, if it isn't a simple percentage then it's probably worth buying a Gift Card in one go and then using that, so that there's only one exchange operation and fee.

    I keep thinking of getting gift cards, but worry it'll just lead me into spending even more. I might give it a try though and see if I can exercise some restraint (at least as much as I'm doing now (which should really be more)).

    Yes, well, good luck with that (says the voice of experience) :)

  • ANGELREAPER1972ANGELREAPER1972 Posts: 4,560

    this is one of my latest orders

    VYK Morwenna for Lavinia
    $10.17
    Nox Hair for Genesis 3 Male(s) & Female(s)
    $8.98
    Lavinia Vampire for Genesis 3 Female(s)
    $10.42
    Tyrannosaurus Rex - Tyrant-Lizard King
    $13.83
    Horror From the Deep
    $12.58
    Bolladon
    $6.76
    Bounce Outfit for Genesis 3 Female(s) and Genesis 2 Female(s)
    $2.75
    Bounce Outfit Textures
    $5.16

    total $70.65 US = $95.87 Australian

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