PayPal skimming from refunds

[MickTodd]

Can someone tell me why PayPal skims from refunds?

I made a purchase in another currency and paid via PayPal *in that currency* so that my bank did the conversion. There was an issue and the payment was refunded, however instead of doing a straight transfer back as a reverse of the payment, PayPal converted and took 4% of the refund. Surely a refund as a payment reversal should be transferred back in exactly the same way as the outgoing payment?

[kernowlass]

@MickTodd 

PayPal refunds that involve currency conversion may differ from the original payment amount because exchange rates fluctuate. PayPal applies the conversion rate at the time of the refund, which may be different from the rate at the time of the original payment.

[MickTodd]

Yes, exchange rates fluctuate. That does not explain why PayPal decided to intervene and apply a conversion, when it did not apply a conversion on the original payment.

Example:

I pay $100 and it costs me €98 at my bank *where the conversion is made* and it gets refunded and for the $100 I receive €97.45, that's fine and I understand that.

But if I pay $100 and it costs me €98 at my bank *where the conversion is made* and it gets refunded and for the $100 I receive €94.45 because PayPal intervened and did the conversion at their rate, effectively skimming off the conversion, that is *not* ok.

[kernowlass]

@MickTodd 

🤷Can only tell you how it works.