Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

Hey guys,

I list all my items in USD$ (despite being Canadian).

Yesterday, I sold a 400 USD$ item to another Canadian. He sent me a message complaining of having to pay 477 CAD$ instead of 462 CAD$ as indicated in the item listing.

I apologized and told him it was probably an issue with PayPal or a new fee I wasn't aware of.

I sent him a new invoice and lowered the shipping fees by 15 USD$ and made him a new invoice (so he would have to pay the price shown in the listing).

 

 

Obviously, it has something to do with PayPal's conversion rate.

It appears they're basically overcharging my buyers and keeping the difference.

And then they take their ~3% (12 USD$) fee leaving me with 397 USD$.

To end the **bleep**, I transferred the total amount to my bank account but only getting ~422 CAD$ (second conversion).

So for an item I sold for 424 USD$ (=462 CAD$), I ended up with only 422 CAD$

PayPal alone "charged" me 40 CAD$ in "fees" and over 9% of the total sale.

I know didn't have to assume the first conversion fee of the buyer but if PayPal was asking the buyer more than the price shown on the listing, I don't see why he should accept this and I can't afford have a buyer unhappy with a transaction from the start.

Is there anything I could have done to prevent this?

 

TLDR : Canadian buyer pays for USD$ item then Canadian seller wants to deposit funds in his bank account. How to avoid paying the conversion fees twice??

 

 

The repartition of my buyers is pretty much 50% Canada 50% USA…

Is there anything I can do to avoid PayPal conversion **bleep** (rate)? List my stuff in CAD$? Transfer my funds in my credit card instead of my bank account (if that can be done…)?

Please I need help with this! I realize I've lost ~500$ in conversion fees simply by depositing my funds in my bank account (when it was supposed to be free)!

Message 1 of 23
latest reply
22 REPLIES 22

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

"Obviously, it has something to do with PayPal's conversion rate."

 

Yes.

 

The problem is your insistence in being paid in US$ when selling to a canadian buyer.

 

At the end of the day, in addition to the fees you pay PayPal, you also pay a foreign conversion fee of approximately 2.5%.

 

The buyer, having to deal in foreign currency, also has to pay 2.5% conversion.

 

That is a total waste of money by both buyer and seller and could easily be avoided by Canadian sellers accepting payment in Canadian dollars from Canadian buyers.

 

 

Message 2 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

Why not just send your Canadian buyer an invoice in Cdn dollars? I do, when requested. Just convert the USD to Cdn using an online currency converter.

Message 3 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

I would have sent a Paypal invoice in CAD to save money on both ends. Paypal does charge a conversion fee.

Message 4 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

I would not have used the word you used to describe your experience. That is a violent word that refers to a man's violence to a woman.

You could not have used the word "Charged", which is entirely true and far more appropriate?

.
.
.
Photobucket
Message 5 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

having been completely and utterly decimated
team A: 112 
team B: 3 

team B got raped"
 
-Urban Dictionary
 
Some words have multiple meanings
Message 6 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

Oh, I do understand that, plus, SK is the Land Of Rap and Honey referring to rapeseed.

I hardly think, however, the OP's use of the word is appropriate in the context of paying money based on their informed choices.

.
.
.
Photobucket
Message 7 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

Oops! Sorry about the language. :S

 

I didn't know it had this second meaning (english is my second language as you've all certainly noticed).

 

I'll try editing the title.

 

 

 

So......

I can send an invoice in CAD$ even is the listing is in USD$?? Can anyone tell me where this option is?

Do I have to enable something somewhere to make it possible?

 

Thanks a ton!! 🙂

Message 8 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

"I can send an invoice in CAD$ even is the listing is in USD$??"

 

???

 

While it makes sense for both you and the Canadian buyer to send an invoice in equivalent Canadian dollar when the listing is sold in US$, as both of you would save the currency conversion fee (about 2.5% each), it cannot be done if the buyer is American since your commitment is to sell in US$ and the buyer has committed to pay you in US$.

 

You cannot ask the buyer to pay more by him having to pay a conversion fee of 2.5% to pay in Cdn$ when the listing is in his currency.

 

If most of your items sell to American buyers, it makes sense to list in US$ and collect US$, except when the buyer is Canadian.  On the other hand, if most of your sales are within Canada, you should save yourself some money and list in Cdn$.

 

You can easily send an invoice to a buyer through PayPal website - Send an invoice link.

Message 9 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

In this specific situation where the buyer complained about having to pay more because of the conversion fees, I could have sent a modified invoice (whish I had known it was possible).

 

However, most canadian buyers will pay right away and I won't have the opportunity to send a modified invoice in CAD$.

 

Is there no way to have eBay / PayPal ask for CAD$ from Canadians and USD$ from Americans automaticly?

Message 10 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

Was the rise in price due to changes in the conversion rate? If the buyer bought the item and then the CND went down, the price in USD would have gone up. At least, I'm pretty sure Paypal wouldn't offer retroactive exchange rates from the exact time the item was purchased.

 

Anyway, I deal with the same issue, but I've never thought of it as getting charged twice. The item is listed in USD, and whether the buyer is Canadian or American, I get the same amount. I then get charged Paypal's 3.9% usury fee and their ~3.1% lower than market conversion rate, and 10% goes to eBay, which is the same company as Paypal...

 

So in short, you aren't getting charged twice; you're getting charged THREE times, and the buyer is also getting hit once (by another 3.1% conversion fee). Ebay's getting around 20% of the total of the money changing hands.

 

My solution? After reading this thread, I decided to place this note in all my listings:

 

IF BUYING FROM CANADA: Please wait until I send an invoice before paying for the item!

 

Message 11 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

Was the rise in price due to changes in the conversion rate?

 

No. When an item is listed in U.S. dollars and a Cdn $ equivalent is shown, it is showing the current exchange rate that Paypal is using. But that amount does not include the 2.5% transaction fee so there is always a difference.

Message 12 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

I've been thinking about adding a note in my listings indicating that, after purchase, I will send an invoice in Canadian dollars.

 

This could increase Canadian sales; however, the downside is it could conceivably create more Unpaid Item Claims since I would have to remove the Immediate Payment Required stipulation in my BIN's.

 

Also, since you can't actually change the currency in the existing invoice, I guess you would just show a converted price which means you would have to check the exchange rate every day (unless there's an easier way that I'm not aware of).  Or, you could send a personal invoice through PayPal which means your sales would show as Unpaid until you manually marked them as Paid.  But, in using a personal invoice, if the buyer didn't pay, you wouldn't be able to open an UID.

 

For those who are doing this now, could you please offer some advice.  Thanks.

 

 

Message 13 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

"which means you would have to check the exchange rate every day"

 

Not needed.  You can use the Canadian dollar equivalent given by eBay.ca in the listing on the day of closing of the auction or day of transaction for fixed price listings.

 

Once the funds are received, simply update your "my eBay" or "Selling Manager" accordingly.

Message 14 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

You can use the Canadian dollar equivalent given by eBay.ca in the listing on the day of closing of the auction or day of transaction for fixed price listings.

 

I guess I didn't explain myself properly, Pierre.  I'm aware that the Canadian dollar equivalent is shown in each listing.  What I wanted to do, however, is charge, for instance, $20 Canadian for an item that is listed as $20 US.  My attempt to increase sales in Canada. I mistakenly thought for a moment that I could use the exchange rate to actually change the price on the invoice, which of course I can't do.

 

Since I can't change the currency or price on the eBay invoice, I'm still faced with the issue of being unable to file a UID if the buyer fails to pay my personal invoice.  While I certainly would like to be able to accommodate Canadian buyers that way, there's still the additional issue of having to remove the Immediate Payment Required on my BIN's. At one time, that may not have been a problem but these days, there seems to be a lot more non-paying buyers.

 

I remain undecided and perplexed 🙂

 

Message 15 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

"I'm still faced with the issue of being unable to file a UID if the buyer fails to pay my personal invoice."

 

???

 

Why not?

 

If a buyer does not pay - in whatever currency and whatever method - you file for non-payment.  The fact a PayPal invoice had been sent has nothing to do with your rights to file for non-payment.

Message 16 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??


@pierrelebel wrote:

"I'm still faced with the issue of being unable to file a UID if the buyer fails to pay my personal invoice."

 

???

 

Why not?

 

If a buyer does not pay - in whatever currency and whatever method - you file for non-payment.  The fact a PayPal invoice had been sent has nothing to do with your rights to file for non-payment.


I thought that if a personal invoice was sent, in place of the eBay invoice, that eBay no longer had any involvement in the transaction. Also, to my way of thinking, because I was conducting the transaction (the payment part at least) outside of eBay, I would lose any seller protection.

 

I still have a lot to learn.

 

 

Message 17 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

When I give it more thought, I guess it's no different than waiting to be paid via money order if that's the arrangement agreed to.

Message 18 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

If you sold an item on ebay, and then sent an invoice outside of ebay, it doesn't interfere with the ebay purchase. If the buyer didn't pay on ebay, or the invoice you sent outside ebay, you can still fil UID through ebay.
Message 19 of 23
latest reply

Getting by PayPal's conversion rate TWICE for 1 item. How to avoid this??

I have always noticed as a buyer that the conversion rate on Ebay is different from the conversion rate on Paypal when paying for an item. Your buyer must be Canadian and using CDN to pay for the item for them to have to pay a conversion rate (or not in the USA), this is why the amount is different for them, Paypal charges them a fee like a bank for the conversion. When you transfer the USD into your Canadian bank account, your bank automatically converts it into CDN, the bank charges a fee for the conversion. Not sure if the seller is also charged a conversion rate from Paypal because you sold the item in USD, and got paid in USD, so there shouldn't be a charge to you, only when you transfer it into your bank account. As I'm sure you already know, Paypal charges a fee for their services as well like Ebay does. I was tired years ago of paying all these conversion rates when I used to sell in USD. I changed my Ebay billing to CDN, I sell in CDN, no exchange rates, I'm happy!
Message 20 of 23
latest reply