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Paypal currency exchange rate different than official rate ?!

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Paypal currency exchange rate different than official rate ?!

Hello,

I just converted some USD to Euros within my paypal account with a paypal conversion rate of 0.8669. but the official rate today is 0.89 !

That is a 11.56 Euros difference, it's huge ! How is that possible ?

I couldn't find any explanation anywhere for such a huge difference between official rates and paypal rates...

 

So every time I get paid with paypal in USD (which is almost always), they take a commission, plus they take another commission when I convert my USD to EUR ? In the end, paypal is becoming my biggest expense in my professional activity !

 

If someone could clarify this exchange rate issue, this would be very much appreciated.

Best,

Olivier <removed>

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Esteemed Advisor

Re: Paypal currency exchange rate different than official rate ?!

@OGsoundFX 

 

The actual rate to rate exchange rate is not the rate you pay if you buy currency to go on holiday etc as the business supplying you those currencies have to make a profit...same as paypal. 

 

https://www.paypal.com/uk/smarthelp/article/how-does-paypal-calculate-currency-conversion--exchange-...


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Esteemed Advisor

Re: Paypal currency exchange rate different than official rate ?!

@OGsoundFX 

 

The actual rate to rate exchange rate is not the rate you pay if you buy currency to go on holiday etc as the business supplying you those currencies have to make a profit...same as paypal. 

 

https://www.paypal.com/uk/smarthelp/article/how-does-paypal-calculate-currency-conversion--exchange-...


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Kudos / Solution appreciated if I helped you.
Contributor

Re: Paypal currency exchange rate different than official rate ?!

That actually makes sense. So paypal takes a commission, but in any case, if I want to convert my dollars into euros I would pay an equivalent commission.

OK, thanks !

Contributor

Re: Paypal currency exchange rate different than official rate ?!


@OGsoundFX wrote:

Hello,

I just converted some USD to Euros within my paypal account with a paypal conversion rate of 0.8669. but the official rate today is 0.89 !

That is a 11.56 Euros difference, it's huge ! How is that possible ?

I couldn't find any explanation anywhere for such a huge difference between official rates and paypal rates...

 

So every time I get paid with paypal in USD (which is almost always), they take a commission, plus they take another commission when I convert my USD to EUR ? In the end, paypal is becoming my biggest expense in my professional activity !

 

If someone could clarify this exchange rate issue, this would be very much appreciated.

Best,

Olivier <removed>



Yes, imho Paypal Males a lot of Money with hidden fees, here: differente between official and PayPal exchange rate. I will avoid paying abroad with PayPal in the future.

Esteemed Advisor

Re: Paypal currency exchange rate different than official rate ?!

@Chrissus 

 

Yeah next time you go on holiday abroad and 'buy' some currency to use then you best not use ANY company that provides that currency as you will never get the exact rate to rate straight fee. 


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Contributor

Re: Paypal currency exchange rate different than official rate ?!

A bit of background information that may be of interest: https://www.xe.com/faq/rates_buyorsellrates.php