Conversion rates poor

[pvanpanhuis]

For example I wanted to convert 400 usd to euros using paypals most recent conversion rate, I would get 302 euros.
However if I use a website like http://www.convertmymoney.com/ says 400 usd converts into 353.30 euros.
Thats a whopping 50 euros difference

Why is this? And why should I use paypal if the differences are this extreme?

[DPCreations]

There will be various conversion rates avaiable for variable reasons.  Furthermore, exchange rates may not take into account actual conversion rates where banks imposes fees to actually make the conversion.  If you think you can do better, withdraw your PayPal funds, do a private exchange for cash.

[lancelotme]

THE Site you used is for reference only,and it is real time.

but there is a bid and ask price for every exchange rate,you are selling US $ and buying Euro .

The bid price is the dealer price for buying your US $ and the asking price is the dealer selling you the same currency,asking price is always going to be higher than the bid price,the difference called the spread is his profit.

Paypal,I believe take the average cost for that day or previous day,you can go to Paypal and find out more.

Also volume does matter,the more you want to buy or sell,the more favorable is the exchange rate.

Dont forget PAYPAL is not a currency dealer,so it could mark up a little to make it worth its while to do the work for you.

I think the difference if you try it with online banking,would be much less than the 50 dollars difference.

Bank of America small business would let you buy foreign currency online for wiretransfer,you can test it and see what you get compared to what Paypal quote you,timing is important,do it within 15 minutes of each other 

[lancelotme]

You can also called Thomas Cook or go online and see what you can get for $400,AAA local office,if you can find one,also will convert currency,Canadian andmay be Euro as well.

So does AMEX office,what they do is to send your request to their NYC office and have it done thru a  bank and then you come back the next day to get the money . 

whatever they do,there will always be a fee for their service

[lancelotme]

I typed in US $400 on various sites,it looks like right now real time the exchange rate for selling US and buying Euro is .845 and you will get 338 euro dollars ..

but how do you pay and how do they deliver the euro to you,there may be some cost involved.

if you want Paypal to deposit in your Euro bank account,is that an incoming wire fee?I dont know,varies with countries and banks.