Currency Exchange Rate Incorrect on 12/02 Purchase

[tlwalker1962]

PayPal chose an exchange rate of 1 U.S. Dollar = 0.990959 Canadian Dollars on a purchase I (US) made on Dec 2nd .

However I checked the exchange rate for the last week and at no time was the CAD worth more the the US Dollar.

How do I get Paypal t reevaluate their conversion rate on my purchase, and return the overcharge?

[Steve_Forster]

Yeah, the Aussie dollar has been above parity for two weeks to the US dollar but Paypal has it at .98 cents.

Can companies set their own exchange rates now? Looks like Paypal does. And if that's legal I'd be amazed.

Surely there's a universal exchange rate everyone has to go by?

[tlwalker1962 · Accepted solution]

Well, I answered my own question. It seems Paypal used the correct exchange rate, but PayPal adds a "currency conversion fee, which is 2.5%". They blend it right in with the conversion rate so it never shows up as a line item on your bill. I assume most people just don't notice. So that is the last foreign currency will make.

This is also why the Ebay estimated price is never right when foreign currency is involved.

[elkshot]

On 1/13/12, I checked the currency rate for GBP vs USD and rate was 1 USD = 0.654352 GBP.  Satisfied I made a purchase expecting to pay $236.75 USD.  Instead I see PayPal charged me $244.02 for 154.92 GBP.  Do the math, PayPal used an exchange rate of .6348659.  Yes, it is only $7.27 USD difference, but I would not have used PayPal for the transaction had I known they could inflate the rate.

Chalk this one up to my naivity.  

[Steve_Forster]

Yeah, I again purchased when the Aussie dollar had been at 1.03 US for well over a week and again Paypa charged as if it were .96 US.

Interestingly, when I enquired about rates at my bank I was told there were actually 4 exchange rates in use and the one I saw on the TV wasn't necessarily what is used in global transactions. WTF?? Nefarious banking practices...who knew?

I imagine Paypal must have info about their rate exchange printed on the website somewhere...