eBay and PayPal difference in exchange rates

[whb360]

Do eBay and PayPal use the same exchange rates? Are they delayed in changing?

For example, on eBay and auction will show $105 USD ($112 CAD) but if I were to exchange $105 USD with PayPal's converter it's sometimes different. For example, on PayPal it would be $105 USD (*$107 CAD) instead. 

[kernowlass]

Ebay amounts are an estimate only.

It would be impossible for them to be accurate for every auction as exchange rates change on a x2 daily basis.   

[kkootenay]

Changes may be published twice a day, but they change moment to moment. And the published rates are really only applicable on multi million transactions between merchant banks.

Go to two different banks in your neighbourhood and ask their rates. Then go to a credit union and to a foreign exchange shop. You will get eight different rates.

What! Oh yes, buy and sell rates are different.

The moment to moment changes are why my nephew who works in The City (London) was a multi-millionaire before he turned 30. He's my favourite nephew of course.

[Omnomshibob]

I've just bought something and eBay said the exchange rate is £1-€1.12 when, at time of purchase it was actually £1-€1.195! And it has NEVER been as low as ebay claimed, all this week it's been hovering around €1.19. Then PayPal said it was £1-€1.14 when, according to XE.com it's NEVER EVER dropped below €1.16. Luckily the item was only €6 or I would have cancelled the purchase.

[Weststar87]

Paypal has a 2.5% currency conversion fee whenever it needs to convert foreign currency. That is why your paypal bill is always a little higher than the current exchange rate and what you pay on ebay. You can also choose to have your credit card company to do the currrency conversion instead of using paypal but they have their own foreign currency conversion fee. Some cards offer a 0% foreign currency conversion fee though.

[BobbyY]

You will probably get a better rate by using a company that does nothing but currency exchange.  In Canada its VBCE and XE.  Even Tangerine has excellent rates sometimes.  Shop around.  Big banks are useless.  Ever seen a big bank give a competitive interest rate for deposits or loans? No.  They don't have to.  Lazy people don't shop around and there are enough of them to pay them huge profits.  Be smarter.  Better yet, sell items in the currency you are buying in so when you sell you keep the money in your Paypal account (make sure that is the primary currency so its not automatically changed) til you need it for your next purchase.  Use a credit card always and pay that credit card from that Paypal account.  Never convert currency unless you absolutely have to or know you won't be needing that currency for months.  For most of us, as soon as we convert it, we need it.  🙂

[sukisomchai]

I  purchased  an  item  from  a  french user  which showed  a  converted   price  of  $  604.02  (with  shipping).   There  was  no   asterix  or  note  that  the  price  in  US $   could  be  higher.   Ebay  stated  exactly   "Item  price  $ 580.33  + $ 23.69  shipping"   this  was  the  basis  for  my  purchase  agreement.   

I  ended  up  paying  $  631.57   because  PayPal  obviously  applied  a  different  exchange  rate  to  my  disadvantage.   (  $  27.55  more  than  what  I  intended  to  pay  for  the  item.)  I  authorized  a  charge  of  $  604.02   but  instead,   PayPal  deducted  $  631.57   from  my  account.

I   believe  that  there  should  be  a  class  action.   If   eBay   displays  an  exact  price  to  the  buyer  he  should  not  have  to  pay  more  than  what  he  agreed   to.

[kernowlass]

@sukisomchai

When you buy on Ebay internationally then it only shows you an approx price >>

382127720547

US $26.51

Approximately £20.14

[raaomoka]

I'm facing a similar issue now on eBay. Before at the check out, could set whatever conversion rate I want to use (either paypal's greedy rate or my bank's) by clicking the link besides my credit card in eBay checkout. Now, that option just disappeared and it's forcing me to use that stupidly greedy PayPal conversation rate. Any hack around this d!ck money grab move? Or do we need to start a lawsuit against paypal for violation of their own terms of service which clearly state that we have the choice to choose?

[BobbyY]

If you don't like paying foreign exchange fees do what smart people do:  Get a credit card on US soil.  Nordstrom offers credits cards to Canadians without an American Social Security Number.  No annual fee.   Then search for a bank account in the US where you can transfer money to pay that credit card each month.  RBC is one.  Alliant is another.  There are more.