PayPal exchange rates when withdrawing funds to bank account

[johayden]

For two days I have tried to withdraw funds to my bank account but stop the transaction because the exchange rate PayPal is giving me is almost 9% below mid-rate. They use the same currency converter (Universal Currency Converter), but the rate has come up at 1.20588 from PayPal and mid-rate is currently at 1.29579. I have called to PayPal and they are telling me that they only charge 2.5% - 3.5% above mid-rate. I can not get past the "supervisor" on the phone and so far the two "supervisors" we have been in contact with are telling me I can only get what is posted on the exchange when I go to withdraw the money. Any suggestions?

[coxengines]

Paypal seems to always be one day behind.

Often, I have gotten a way better exchange rate than what it should have been because our $ went up during the day (or the US $ dropped).

Conversely, the other way around, you will get less of a good deal on days our $ drops (or the US $ goes up).

I cancelled this morning's transaction as the rate was 1.21 and I'll likely get way better than that tomorrow.

Xena

[purse_of_the_legionary]

xenalook

Thing is, it's been the exact same rate for 3 days now, even if Canadian dollar lost almost 3 cents since 3 days... Let's wait and see if it will lower tomorrow.

[coxengines]

Yes, I did notice that the past 3 days as well but did not give it much thought, I must admit.

I believe that the "big drop" occurred yesterday and today, however.

Xena

[ricarmic]

Ahhh this post helped! I don't usually convert from PAYPAL to my Canadian account but my process to get the $$ from Paypal to my US bank to my Canadian bank then converted takes too long when the $ can change 2 or 3% in one day! I too noticed the awful rate (6% below XE!)and I was going to check again tomorrow to see if it was a decent rate on PAYPAL. It is good to know this delay aspect. Have a great weekend!

[coxengines]

Hm...., still the same rate as yesterday. Now, that IS odd!

Usually the rates change the following day, reflecting movement in the US$/CA$ exchange rate.

For 4 days this has not happened. My cash-flow is only about $400/day so it's not a huge deal so far but this could add up over time.

Xena

[sunrunnerultra]

Just checked it, it's at 1.23928 now.

[coxengines]

Dang! Just transferred out over $600 this morning, before the change. Grrr!

Xena

[westernstargifts]

Banks adjust the exchange rate on a daily basis. Why can't PayPal?

[coxengines]

Problem is that PP did not adjust their rate for 4 days even though the exchange rate went from 1.23 to 1.28 in increments over those 4 days.

Xena

[craftycatsattic]

Thanks for the helpful thread! I have been looking at the rate for a few days now myself and thought it looked low. Then I saw the post that it went up so cleared out my pp account today at almost 24%.

[axe_n_gear_music]

I just did a transfer myself and it was-

Exchange Rate:
1 U.S. Dollar = 1.25199 Canadian Dollars!!

Not bad, eh?:-D

AXE

[pierrelebel]

Sellers should remember that PayPal offers different currency conversion spreads based on a seller's volume.

That policy change was announced earlier this year:

http://www2.ebay.com/aw/ca/200805011002562.html

Most Canadian banks have similar policies, although the amounts will vary. At BMO, the spread narrows by about one percent when I convert a minimum of $10,000 from my US$ to my Cdn$. .

[craftycatsattic]

Yes I did forget Pierre. Thank you!

[sunrunnerultra]

Wow, how fast PayPal rate changes when the dollar goes up, 1.18911 now.....

[coxengines]

It works both ways.

Current wholesale is 1.2389

Just did a withdrawal for 1.2301

Meaning I got par.

No one ever seems to complain when it's in their favour 🙂

Xena