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Why paypal converts the foreign currency owed to the foreign seller without my consent?

Contributor

Why paypal converts the foreign currency owed to the foreign seller without my consent?

Hi, I have just paid for a large transaction billed in euro. Only to be advised in the receipt that euros have been converted automatically by paypal into Swiss francs without my consent. I thought that the ammount indicated under the original currency was to give me an indication of what it might be in local currency. Doesn't sound right. If I am accepting the bill in the foreign currency,  that foreign currency amount should be billed as is to my nominated credit card account. I'll let my bank decide what/how to convert. The conversion rate is double of the market rate, which is outrageous. I ended up paying much more than I expected. Sounds like a desperate effort to make a revenue at any cost.

PayPal please explain. If this is  a new stream of revenue for PayPal, and I have no say in it, I'll close my account and move elsewhere. 

3 REPLIES 3
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Frequent Advisor

Re: Why paypal converts the foreign currency owed to the foreign seller without my consent?

are you making a payment or receiving a payment ?

you said you have just paid-so you are the buyer?

what do you care if it has been converted to swiss franc,let the seller worry about.

if you are the seller and just received a euro payment,then where are you,where is your paypal account based and what is your local currency

Highlighted
Frequent Advisor

Re: Why paypal converts the foreign currency owed to the foreign seller without my consent?

I just reread your thread,you are the buyer and made a euro payment to some seller using a credit card?

You are in Switzerland and your Paypal account is based in Switzerland and your local currency is Swiss Franc?  

Your credit card is issued by some Swiss Bank and is in Swiss Franc.

Your euro payment is being converted into Swiss Franc by Paypal,using wholesale real time exchange rate and a conversion fee of 3% and submitted to your credit card issuer.

Your gripe if I understand you is that you would rather have Paypal sent the transaction in euro and let your cc issuer does the conversion which would come out cheaper ?

you may want to search this forum,this issue has been discussed many times

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Contributor

Re: Why paypal converts the foreign currency owed to the foreign seller without my consent?

Thank you. Exactly my point. I lost some 80 chf as a result of automatic conversion. I since found the option to deactivate it. But when doing a mobile transaction it is very hard to make changes to this option. PayPal can ask the payer before they hit Pay. The difference is significant therefore if its not a trite matter. I started avoiding PayPal Because of this complexity. Much easier to use my visa Straight out.