Exchange rate for USD to Korean Won?

[MikeCo]

I have a supplier in Korea who complains that the exchange rate from US Dollars to Korean Won is much less than when we do a bank to bank wire transfer. Can someone shed some light on this topic for me?

For example, on the last transfer many months ago, they said that the exchange rate from Paypal was 1076.906  vs 1101.40 when we sent US Dollars directly to their bank. 

Is it true that Paypal's exchange rate is not competitive with others? Or is it possible that the supplier isn't taking into consideration the 3.9% fee for receiving the money by Paypal?

[paulanvnes]

A bit dated, but Paypal charges 2.5% commission on currency exchange. This is roughly equivalent to the difference you stated.

[Whac-A-Mole]

It is now 3%.not 2 1/2 % for currency conversion.

if you pay via goods and services,yes,Paypal will deduct 30 cents plus 2.9-4.4% discount rate.

Paypal is not the most economical way of sending money abroad ,esp if there is currency conversion involved.

[Whac-A-Mole]

There is also a bid and ask price .