Why is there a significant discrepancy between Band Camp prices and Paypal final fee?

[cornutzo]

It seems that Paypal is using an inflated exchange rate. Please see below.

From Bandcamp:

That's The World, Double-Vinyl Set - That's The World + Stories From The Brass Section (Pre-Order. Ships October 7th) by Anti-Lilly & Phoniks Record/Vinyl

$50.00USD

Shipping address:

(removed)

subtotal $50.00 USD

shipping $23.00 USD

total $73.00 USD

(approximately $107.05 AUD)

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Exchange rate live on Duckduckgo for USD to AUD:

73 USD = 107.39 AUD at time of posting.

********************************************************

And now onto Paypal:

Paypal rate 1AUD = 0.064852USD

= $112.56 AUD

That is over $5 on top... and for what? Can someone please explain the rationale behind there before I conclude that Paypal is greedy, and biting off more than it should. If I don't get a reasonable explanation I will have no choice but to delete my account. I'm not buying those records at an inflated price without good reason. I'll be contacting Bandcamp and the artists too.

There are far fairer payment methods that this.

[kernowlass · Accepted solution]

@cornutzo 

Exchange rates show the exact amount that one currency is against another at that moment in time.

However if you go on holiday and 'buy' currency or purchase goods then you pay that company to do the currency exchange for you........so its always higher then the currency / currency comparison rate.

[cornutzo]

I understand what you say, however there are significant differences between travel and exchanging money in a physical retail setting and getting docked 5% of the value (!!) of my transaction in a currency conversion on an established and prominent internet based payment system that is only acting as a medium for a payment. Again, this seems completely excessive and greedy.

1% okay. 2% alright, 3% hmmm, 4%... 5%? Unreasonable.

I can see how Paypal made $15 billion in revenue in 2018. No surprises.

[kernowlass]

@cornutzo 

Yep true, but most big companies are greedy aren't they.

Try a cheaper payment processor for that transaction maybe?

[cornutzo]

Sadly Paypal is the only method for this particular website/artist.

Is anyone from Paypal actually going to contribute anything to this thread? Or have I completely wasted my time?

[kernowlass]

@cornutzo 

This is a 'community' user to user forum if you want customer services then you would have to contact them direct.