Currency Conversion

[aklinz]

UNBELIEVABLE !  Not only does PayPal extort large "user fees" on every transaction, they are currently adding a 8% surcharge on Canadian users !   By this, I mean the fact that PayPal currently values the Canadian dollar at 94 US cents.  EXCUSE ME ????   The bloody Canadian dollar has been at 1.02 (or above that) for over a month !  At what point are you going to "get with the program" and actually adjust your currency values ?  Maybe a year from now ? I will simply refuse to use your fraudulent company from now on ! 

In disgust,

Andrew

P.S.  With policies like these, no wonder why the rest of the world hates Americans !

[utopiaglass]

Actually, if you took US funds to any bank to have converted to Canadian, that bank would take a chunk as well.  Every bank charges a service charge when converting currency and PayPal's rates are very comparable to what banks are charging.  I have a US account with Bank of Montreal because I receive paycheques in US funds.  When I convert to Canadian the same things happens, they take a chunk - it is never converted straight across at what the current exchange rate is. 

[janbann]

Hi Utopia.

first of all I totally agree about the exchange rate being whacked, but I guess that is the banking business. I was just going to transfer some money and it looked so low.

I am new on PayPal and I set up a BMO US account too.

I did have one person send me a US Postal Money order that my bank cashed and then they just phoned today to say it didn't go through their clearing station. Any ideas how I cash this? thanks Hope I am not bothering you asking you this but you seem to be in the know,

thanks Jan

[melizy]

I'm not Utopia but maybe I can help.  A US postal order is just like cash so did the  bank tell you why it didn't go through...was there a mistake on the order...there had to have been....did they send you the money in US $ or Canadian??  I would find out from the bank and then get in touch with the person who sent you the postal order.  good luck!!

[utopiaglass]

Hi Jan. 

I haven't dealt with U.S. money orders personally but have come across discussions regarding them in eBay forums.  The money order sent to you must be an "international" money order.  It may be that your buyer sent you a "domestic" money order in which case you cannot cash it in Canada.  Maybe you can contact your buyer and explain what has happened, and hopefully they can send you a new one (If you have already sent them the item, you may be out of luck unfortunately but there are still some good people out there that will do the right thing.)  If your buyer will send you a new one, make sure they check with their bank that the money order can be cashed in Canada. Good luck!

Colleen

[janbann]

Hi C,

i think you're right. There seems to be two kinds of postal money orders. I am going to check with the Post office, as apparently they cash some of them.

If not I may have to go across the border to cash it. Lesson learned. If that doesn't work I will contact the buyer, and see how that goes-she was really nice.

thanks Jan

[chucklesmga]

You are correct there are 2 types of money orders. If requesting a funds from abroad, especially from the USA specify in your listing that the buyer MUST ENSURE THEY ARE NEGOTIABLE AT A Canadian Bank. If not return it.  Also check with your bank before mailing the item.      Dave

[Crimper]

Agreed but when it approaches 5 - 10 basis points that is an excessive fee. In fact, in Canada, it may be considered gouging, which is illegal.

The rate of exchange on here is over the top. No amount of cheerleading or fluff can justify it.

[pulpfiction1]

i deal with royal bank and if i buy USD they charge 3%

[PayPal_Adrian]

aklinz -

Welcome to the boards!

I can certainly understand the confusion - the rate you are shown is based off of the rate given to PayPal by our bank (updated twice daily,) but it also includes a 2.5% fee worked into the spread to pay for the cost of the conversion.  That's why you see the difference that you do and why the rate doesn't match up against whats being published in the papers or at other online sites.  Those rates are also for large banks or entities moving millions of dollars at time - versus on demand and small funds conversion rates.

Hope this helps,

Adrian