Why does e-bay charge (what I consider) an unfair rate of exchange when I buy from US Sellers. The Canadian $ is worth more the the US $ is

[mtdtrash]

I'm tired of being ripped off by E-Bay's unfair exchange rates.  The Canadian $ is worth approx. $1.0086 per US $.  Why do I loose almost 2% on the spread.  Based on E-Bay's track record (anticdotally).  I'll get the standard general response.  I realise that it's pennies but it adds up.

[heidilynn0_3 · Accepted solution]

Hi .. Has absolutely nothing to do with ebay. This paragraph puts in perspective..

"The rate you see on the news is the rate that banks or large financial institutions charge each other when trading significant amounts of foreign currency. It is not the tourist rate and you will not be able to buy currency at this rate, as you are buying relatively small amounts of foreign currency in comparison. In everyday life it is the same as the difference between wholesale and retail prices"

[piterpater005 · Accepted solution]

Less than 2% is good.  The usual spread is generally 2.5 - 2.9%

[femmefan1946]

Banks and Paypal and credit cards charge a service fee for foreign exchange.

Sometimes the service fee (usually a percentage) is greater than the difference between the two currencies.

You could try loading your PP account with US dollars. Set up a US dollar account with your bank and pay your PP invoices from that.