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Difference between advertised PayPal currency exchange rate and actual rate during payment

AmaDu
Contributor

Difference between advertised PayPal currency exchange rate and actual rate during payment

Hello, 

 

I am looking to pay an article online and the site offers payment in USD. Coming from Europe, I chose to pay in Euro.

 

But the price in Euro seemed high so I checked and when paying the offered exchange rate is 1 EUR = 1,13234 USD whereas the exchange rate displayed by the currency calculator available in the "My Wallet" menu is 1 EUR = 1,1441 USD.

 

Why is there such a stark difference between the advertised rate and the one that is applied during payment?

 

 

2 REPLIES 2
benfielding214
Contributor

Re: Difference between advertised PayPal currency exchange rate and actual rate during payment

PayPal uses a different exchange rate for balance transfers and for payments. If you convert money as a balance transfer within your PayPal account, you can get a better exchange rate, because the markup added by PayPal is smaller. Its just Paypals mark up (fee)

sharpiemarker
Esteemed Advisor

Re: Difference between advertised PayPal currency exchange rate and actual rate during payment

@AmaDu 

 

If you used PayPal’s currency calculator, the rate given there may not be the actual one used and could differ from the moment of transaction. You get a close estimate, not the exact rate with the calculator.


Kudos & Solved are greatly appreciated. 🙂