So Paypal cheats us with incorrect exchange rates then?

[boxfreind]

The transaction was for €27.49 EUR  and I was charged $31.84. Paypal says the exhange rate is 1 U.S. Dollar = 0.863478 Euros. This is incorrect. The current exchange rate on 5/23/2017 is 0.894455 which would make the payment $30.73. So PayPal overcharged me by $1.11. I wonder how much money they are pocketing this way? If that IS what is going on, it is 100% fraudulent.

[Trackerpay]

I spoke to Paypal 6 weeks and 3 weeks ago about their charges. Apparently there is a system error that does not allow you to use your own Card Companies rates but it is defaulting to PayPal's rates which is about 3% dearer. Paypal are probably making $100,000 a day with this "error". Have they fixed it in 6 weeks no! Are they likely to fix it - no! You do the maths!! I am considering reporting this to the National Press and the Which Magazine in the UK. It is a scandal worth noting.

[Whac-A-Mole]

it takes 24- 48 hours in US for Paypal to complete your credit card transaction,if you are the seller and you receive a credit card payment from yourbuyer via Paypal,Paypal is actually advancing the money to you before it collects from the buyer credit card issuer.

since it takes 1-2 days for the transaction to reach your cc issuer,Paypal would not know what the exchange rate would your cc issuer be using,also Paypal members use credit cards isued by many banks ,rate will vary.

[Whac-A-Mole]

there is a bid and ask price,if you buy,youpay the asking price,if you sell,you pay the bidding price,the difference is the spread ,that the dealer's profit.

the dealer is the foreign exchange dealer who makes a market in that currency

[Whac-A-Mole]

when the market is open,the rate fluctuates by the second,it is not one fixed rate for the whole session

[Trackerpay]

You are correct about the currency rate but you the forget one thing I was writing about. Until recently, if you bought say on EBay in a foreign currency using Paypal, you had a choice. 1. Use PayPal's exchange rate which is about 3% lower than the Commercial Exchange Rate or 2. Use your Credit Cards companies Exchange Rate. Now in my case my Credit Card company uses the Commercial Rate WITH NO CHARGE. Now there is NO choice, you have to use PayPal's rate. I have spoken to Paypal about this and their excuse is it is a system error. There are millions of $ of foreign currency translations of which Paypal now makes 3% on each foreign transaction. In the last month this has cost me over £50 in charges!! So, if I use PayPal's Rate the goods cost me about 3% more! So now I choose not to buy goods abroad or where there the goods are in a foreign currency. So sellers will lose out on International buyers just because Paypal is greedy. I believe someone at Paypal has made a bad commercial decision. This has nothing to do with Currency movement's. I deal in currencies and the currency market every day - so I know exactly what I am talking about.

[sharpiemarker]

According to the US user agreement:

"When your payment is funded by a debit or credit card and requires a currency conversion, you consent to and authorize PayPal to convert the currency in place of your debit or credit card issuer. You have the right to have your card issuer perform the currency conversion and can choose this option during checkout on your transaction review page before you complete the transaction. If your card issuer converts the currency, you’ll be charged a rate set by them (shown on your statement), and you’ll be subject to any fees and terms set by them related to the conversion.
PayPal will always perform the conversion for transactions where your PayPal balance or linked bank account is the payment method."

Was there a link for conversion options during checkout, should be located right where the conversion is shown. Or mouse over the currency conversion like the image on the very last post at this link: http://bit.ly/2smcLMo

Or try this:

1. Go to the checkout, choose PayPal and fill out your login information.
2. Instead of selecting your card and the conversion options, click on Switch account (click arrow next to exchange rate) and DON'T fill anything in. 
3. Open a new browser tab, go to paypal.com and log in to your account.
4. Switch back to previous tab and fill out your PayPal login information again.
5. You will be redirected to the older version of checkout, where the conversion options is working.

[Whac-A-Mole]

THE 3% COnversion rate is stated in Paypal terms and agreement , if you are both buyer and seller ,you can build up your foreign exchange fund in your Paypal account,then you will have separate Paypal balance,one in local currency and the other in the foreign currency.

In fact some sellers prefer Euro or US $ RATHER than their own currency,so when they sell something on US site,they get paid in US $ AND THEY keep it as US$,SO THEY can use it to buy from US sites.

You can also look for sellers or website which offer credit card payment without Paypal,then you will enjoy your cc issuer exchange rate

[Mark5791]

Well, you are spot on with this.  I've made two purchases and paid more for the item than the current exchange rate.  There is no need for this on PayPal's end.  If they pay the seller immediately, then it is at the current exchange rate and that is what you should be paying PayPal for.  In the instance of my last purchase the seller added a 7 euro fee to use PayPal (and my thoughts on it were that PayPal most likely screws them over, so I agreed to it).  Then PayPal added 3% on top of this which I didn't realize was their policy.  I am one of those who unfortunately will not buy from this vendor (or any other international seller) simply due to this issue anymore, although I would like to, and it's just too risky using your CC internationally.  The seller will be the loser as PayPal skims 3% on each transaction.  Currency fluxuations have no bearing on this as PayPal pays the seller right away, the only delay may be the buyer reimbursing PayPal but they should only owe what PayPal immediately paid the seller at the current exchange rate. 

[Whac-A-Mole]

---

@Mark5791 wrote:

Well, you are spot on with this.  I've made two purchases and paid more for the item than the current exchange rate.  There is no need for this on PayPal's end.  If they pay the seller immediately, then it is at the current exchange rate and that is what you should be paying PayPal for.  In the instance of my last purchase the seller added a 7 euro fee to use PayPal (and my thoughts on it were that PayPal most likely screws them over, so I agreed to it).  Then PayPal added 3% on top of this which I didn't realize was their policy.  I am one of those who unfortunately will not buy from this vendor (or any other international seller) simply due to this issue anymore, although I would like to, and it's just too risky using your CC internationally.  The seller will be the loser as PayPal skims 3% on each transaction.  Currency fluxuations have no bearing on this as PayPal pays the seller right away, the only delay may be the buyer reimbursing PayPal but they should only owe what PayPal immediately paid the seller at the current exchange rate. 

---

seller cannot charge the buy Paypal fee.

Seller always pay Paypal fee,it is the cost of doing business.