You are correct about the currency rate but you the forget one thing I was writing about. Until recently, if you bought say on EBay in a foreign currency using Paypal, you had a choice. 1. Use PayPal's exchange rate which is about 3% lower than the Commercial Exchange Rate or 2. Use your Credit Cards companies Exchange Rate. Now in my case my Credit Card company uses the Commercial Rate WITH NO CHARGE. Now there is NO choice, you have to use PayPal's rate. I have spoken to Paypal about this and their excuse is it is a system error. There are millions of $ of foreign currency translations of which Paypal now makes 3% on each foreign transaction. In the last month this has cost me over £50 in charges!! So, if I use PayPal's Rate the goods cost me about 3% more! So now I choose not to buy goods abroad or where there the goods are in a foreign currency. So sellers will lose out on International buyers just because Paypal is greedy. I believe someone at Paypal has made a bad commercial decision. This has nothing to do with Currency movement's. I deal in currencies and the currency market every day - so I know exactly what I am talking about.
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I spoke to Paypal 6 weeks and 3 weeks ago about their charges. Apparently there is a system error that does not allow you to use your own Card Companies rates but it is defaulting to PayPal's rates which is about 3% dearer. Paypal are probably making $100,000 a day with this "error". Have they fixed it in 6 weeks no! Are they likely to fix it - no! You do the maths!! I am considering reporting this to the National Press and the Which Magazine in the UK. It is a scandal worth noting.
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