Paypal currency exchange rate different than official rate ?!

[OGsoundFX]

Hello,

I just converted some USD to Euros within my paypal account with a paypal conversion rate of 0.8669. but the official rate today is 0.89 !

That is a 11.56 Euros difference, it's huge ! How is that possible ?

I couldn't find any explanation anywhere for such a huge difference between official rates and paypal rates...

So every time I get paid with paypal in USD (which is almost always), they take a commission, plus they take another commission when I convert my USD to EUR ? In the end, paypal is becoming my biggest expense in my professional activity !

If someone could clarify this exchange rate issue, this would be very much appreciated.

Best,

Olivier <removed>

[Jbsm77]

Not sure who I’m replying to here now because PayPal is jumping all over the place.

[Jbsm77]

Jeez it sounds like you work for PayPal with that response! With new banking apps can get the interbank rate and avoid these punitive rates. PayPal doesn’t give good rates.

[theking2]

There is a difference, though between a profit and an insane profit. It would help Paypal if the exchange rate isssue was clear in their anuall reports. Or if they would contribute earnings to a proper cause. Why not have paypal erradicate Covid. Or pay taxes?

[frikdt]

Well, I have always been using PayPal where online retailers accepted it. I have noticed the apparent discrepancy before and wondered about it but never actually followed up. However, during my latest purchase (on ebay) which was a relatively large sum, the discrepancy became more apparent and I found this discussion explaining it. I then went ahead and paid directly with my credit card and found that PayPal would have charged me 1.8% more than what I actually ended up paying - a not insignificant amount in this case. So I guess I'm done transacting via PayPal - I'll be using my credit card in future.

[Chrissus]

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@OGsoundFX wrote:

Hello,

I just converted some USD to Euros within my paypal account with a paypal conversion rate of 0.8669. but the official rate today is 0.89 !

That is a 11.56 Euros difference, it's huge ! How is that possible ?

I couldn't find any explanation anywhere for such a huge difference between official rates and paypal rates...

So every time I get paid with paypal in USD (which is almost always), they take a commission, plus they take another commission when I convert my USD to EUR ? In the end, paypal is becoming my biggest expense in my professional activity !

If someone could clarify this exchange rate issue, this would be very much appreciated.

Best,

Olivier <removed>

---

Yes, imho Paypal Males a lot of Money with hidden fees, here: differente between official and PayPal exchange rate. I will avoid paying abroad with PayPal in the future.

[kernowlass]

@Chrissus 

Yeah next time you go on holiday abroad and 'buy' some currency to use then you best not use ANY company that provides that currency as you will never get the exact rate to rate straight fee. 

[david3212]

A bit of background information that may be of interest: https://www.xe.com/faq/rates_buyorsellrates.php

[Jbsm77]

Ya PayPal rip customers off. Not about a margin, about an excessive margin. Daylight robbery. Use modern fintech companies instead where you can convert at interbank rate. 

[Sankha]

I am not going to use this PayPal anymore. This rate conversion sucks. I will use other payment systems like GooglePay to get my payments. Loose $20.45 because of your useless old school payment system.

[theking2]

The one and only reason PayPal is  in business is markup. PayPal makes amazing amounts of money from excessive exchange rates. interbaking fees and keeps quite a low profile on this. One reason I went other services like revolut and others.

We now know who paid for SpaceX and the Tesla...