What's the most efficient (cheapest) way to receive international payments?
Hi there - I typically use paypal to buy things, but am starting to use if for getting paid as well.
I have a client in Australia who wants to send me payment (to Canada) for services via Paypal. We did this once so far and it seems that I'm getting hit for multiple fees in the transaction. I'm assuming it's multiple currency conversions plus the payment fee.
Here's the scenario in round numbers:
a) I send an invoice from Quickbooks via email for $1000 AUD
b) client sends me $1000 AUD via Paypal, but when I check my account, it says $940 CAD was sent (1)
c) I accept the payment, then $36.99 in fees are deducted, leaving me with $903 CAD (2)
d) Current exchange rate is 1 AUD = 0.99 CAD
(1) The first deduction is the currency conversion. 1000 AUD = 940 CAD. That's way higher than the posted Paypal fees for international transactions. (Which I saw as spot rate + 3%, so should be 1 : 0.96 or there about. This was way closer to spot + 5% which I can't find anywhere.
(2) The second deduction is the international payment fee (not currency conversion) 3.9% + 0.30 That works out.
So I guess my question is about the currency conversion. Is there a way I could have things set up whereby the currency is converted twice? ie, AUD -> USD -> CAD ?
I tend to purchase things in US dollars which is why I'm guessing this may have happened. Although the message I received was that there was CAD waiting for me to accept, so perhaps I'm clutching at straws here.
Thanks for any light you can shed on this.
PS. I double checked my account and it had USD as my primary currency. I switched it to CAD now. Could that have caused a double currency conversion?