Currency exchange query - USD to AUD refund

[OrchidDream]

Hey there PayPal'ers 👋🏻

I'm currently living in Australia, Sydney 🦘 and paid for a product online earlier this year which was a pre-order. The company is based in the US 🌎

My question is, if I've paid a certain amount in USD dollars 💲 (which translates to more AUD dollars due to the exchange rate) and want to get an exact refund, should the company provide me with the exact AUD amount, or are they only able to provide the USD amount? 🤔

Hoping someone can assist - the sooner the better as I can then escalate to PayPal if need be. But thought I'd ask those with experience in the community first! 🤼

(I have a feeling it may not be possible as, on their end (the US side), they are only able to provide a USD refund (and therefore less AUD on my end 😭)

Thanks for your time in reading this!

[PayPal_Meghan · Accepted solution]

Hello @OrchidDream, 

Thanks for joining the PayPal Community! 

I understand you'd like to learn if a merchant can refund in a different currency from the original payment/adjust the amount refunded to ensure a full original refund is issued. The merchant will only be able to process the refund in the original currency and of the original amount received or less. For example, if they received $100 USD, they could process a partial refund smaller than that if agreed upon, but no more than $100 USD. 

It sounds like you know this already, but just in case, I do want to give you a heads-up about refunds with currency conversions. If a refund is issued more than 24 hours after the initial payment, the refund is processed based on the exchange rate at the time of the refund. This can result in a different amount being refunded. You can learn more about refunds on our Help Center here. 

I hope this answers your question about refunds and currency conversions! 

- Meghan

[OrchidDream]

Hey Meghan 👋🏻

Thanks for clarifying my issue regarding refund in a different exchange rate. I didn't know that the policy on exact amount returns can only really happen in the first 24 hours of purchase (and I would imagine this might differ from company to company) 😎

You've been a big help! I've marked your response as the solution! 👍🏻 

A shame that they can't fully refund the amount, but I would image that this would prove very difficult due to the fluctuating exchange rate 💵

-- OrchidDream

[juliafitzy]

Be very aware PayPal has exorbitant "currency conversion spreads"! In my case I was trying to pay an Australian supplier but PapPal refused to release the funds after many attempts by the supplier to provide additional information (I assume to ensure it was not fraudulent) to PayPal and my verifying it was a legitimate business.

I called PayPal and they said I should initiate a refund (even though no money left PayPal to my supplier) and I would get 100% of my money refunded. In checking my US credit card PayPal deducted 6% from the original amount! When I complained about this they said it was due to their currency conversion spread as it was 24 hours after the original transaction.  The whole experience of hours on hold, talking to multiple representatives, supervisors, and managers was exhausting and painful!! After weeks of this nonsense I finally got to a manager that offered me a 50% refund - I accepted it but want others to know this these charges are ridiculous and users should look at alternative providers. I certainly will!

Good luck to you.