Paypal conversion rates insanely low ?!

[Matei86]

Hi,

I noticed that paypal changed the layout of the withdraw page, before i couldn't see the conversion rate and how much would i get in Romanian currency (RON). Even so, after withdrawing $500 to my credit card (in RON), i personally calculated the exchange rate which usually was 3.85 RON for 1 USD (this was one week ago). Since then, the USD currency got stronger compared to my local currency RON, therefore expected to receive more money.

Now the withdraw page shows how much money i will receive in RON and the conversion rate. I was shocked to see the insanely low conversion rate paypal was offering me! 3.78 RON for 1 USD!! This is about $12 less then i received one week ago for the same amount ($500)!!!

I feel like i'm getting ripped off by paypal!! What is going on here?!

I attached an image of the withdraw page showing paypal exchange rate and normal exchange rates

[Whac-A-Mole]

Paypal charges a 3% conversion fee,you see it in the table.

there is always a bid and ask price for currency exchange,the difference is called the spread and thats the dealer profit

[Matei86]

Thanks for the reply

I don't recall having such a low conversion rate. Has this fee increased recently? As said before, last week i had a higher conversion rate of ~3.85 RON / USD, even though the USD was weaker.

Even so, 3% is too much, at $1000 i'm being charged $30 !

And i thought the bank is converting the USD into RON, not paypal! Paypal should only transfer the USD to my bank! Can't i change this and have my bank's conversion rate?

[sarahx87]

so, we got charged twice, conversion and when withdrawing? Is there any other fees

[Matei86]

Can someone please tell me why paypal is now converting money and not my bank?

I've just withdrew $500 and now my paypal balance shows me the amount in RON instead of USD.

Why did paypal change this?? I want my bank to convert the money, not paypal !

I also verified the exchange rates for the previous withdrawal (13 oct - same amount $500), and even though the rate was lower (USD was weaker in that day) i received more money in RON!!

[Thril3r]

Salut Matei!

Well, I've also had a shock today when I wanted to withdraw $500. The exchange rate is $1=3,772764 RON  I find this insanely low..... Is there any way we can change that and withdraw money as before and let the bank do the conversion and not paypal?

[Matei86]

Haven't found any answers yet. This is outrageous, i received 70 RON less (~$18) even though the USD currency is stronger.

PAYPAL, we need ANSWERS! Why have you changed this? LET THE BANK DO THE CONVERSION, NOT YOU!

There must be an option for your clients to CHOOSE whether they want the BANK or PAYPAL do the conversion!!

[Dowib]

How come recently Paypal fixed the conversion rate on their system instead of follow the latest bank rate. It is a insanely low rate, and it is unfair to your user. Your team should follow the market rate insteadd of set your own rate without any notification to your user.

thanks~

[Whac-A-Mole]

I think with credit card,you have a choice of the cc issuer or Paypal,but with bank transfer,it is Paypal .

My guess is with foreign bank transfer (Paypal is a US  company),it goes thru that country central bank clearance system and it requires member banks to clear in local currency,not some exotic currency like US $ ,SO pAYPAL or rather Paypal's bank has no choice but to convert your fund into local currency.

In USA,Paypal bank transfer is handled by the bank where Paypal keeps its deposits,and it clears with other member banks of the Federal Reserve system,and the currency is US$.

so I would think your country central bank clearance would require local currency.

You may want to research your own country bank clearance /

[Whac-A-Mole]

Or.

Paypal just loves to make more money