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Thread: Why paypal currency converter is always showing Low Rates?

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    hendricius's Avatar
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    Why paypal currency converter is always showing Low Rates?

    I think you all might be aware about this.

    Paypal is showing lower Rates than the current market rate when withdrawing the money to credit card or bank. Remember this except the fee they are charging always.?

    Their Currency conversion Rates always shows 3-4% lower to the actual Rate..

    Do you have any similar experience? Share it here..
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    Arunkumar's Avatar
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    Yes,i had the similar experience but i don't know why they don't show the real market rate.

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    Last time I read their terms of service, I think it said those were fees. Because some people could transfer their money from Dollar to Euro, and swap that to get 'more money' with doing nothing.

    That's why they have some fees (3% or 4%)
    |Nico Lawsons

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    DotComBum (13 August, 2009)

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    If you research on this topic then you will come to know that they always create one stable point which is near currency current rates and then they cashout your money . Like you earner today $100 which is around rs 40/$ . Now after one month $ rate is rs 48 then they will pay you around rs 45/$ or something like that . It is too balance their profit and economy .

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    Quote Originally Posted by Arunkumar View Post
    Yes,i had the similar experience but i don't know why they don't show the real market rate.
    You can check their Rate here https://www.paypal.com/us/cgi-bin/we...ncy-withdrawal

    and the real market Rate here http://finance.yahoo.com/currency-converter
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    hendricius's Avatar
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    Quote Originally Posted by Aquarezz View Post
    Last time I read their terms of service, I think it said those were fees. Because some people could transfer their money from Dollar to Euro, and swap that to get 'more money' with doing nothing.

    That's why they have some fees (3% or 4%)
    Hi friend, in the terms it is clear that they will charge fees that's true. But if they are deducting some amount as fee it is clearly shows in the transaction details. Am just telling about the less amount they are showing while currency conversion.

    Not about fees.. But about the conversion Rates. And fees are charging extra..

    Say today's USD EUR conversion Rate in market is I EUR= 1.4288 USD if you are checking with paypal you can see that they are showing a less amount like 1.2990 or similar Rates this is not at all happens in only dollar euro conversion Rates. Every where they are doing the same thing it seems.
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    Aquarezz (13 August, 2009)

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    With currency exchanges there are always fees involved. That's why the EU replaced the local currencies with the Euro.

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    Quote Originally Posted by bogart View Post
    With currency exchanges there are always fees involved. That's why the EU replaced the local currencies with the Euro.
    Hi friend, are you talking about the paypal or about the global market..I am just telling about the money grabbings of paypal. The fees are taking in the name fees. This is like their hidden profit. You can see my previous post. Paypal is giving lower amount for the currency than we can get from anywhere else.
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    Quote Originally Posted by hendricius View Post
    Hi friend, are you talking about the paypal or about the global market..I am just telling about the money grabbings of paypal. The fees are taking in the name fees. This is like their hidden profit. You can see my previous post. Paypal is giving lower amount for the currency than we can get from anywhere else.
    You are correct. Consider it like going to the train station and converting dollars into the local currency. You wouldn't get the best rates. The rates published in the newspaper are the interbank rates. You wll never get that rate. As you have said paypal builds a fee into the currency exchange.

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