Paypal exchange rate

[2012flybynite]

If E-Bay follows the exchange rate each day,and post it to the auctions for items,and list the price for the item lower in CDN funds than US funds.Why does Paypal charge a higher amount?It seems like this is always the case for almost Everything that I bought.

                              Thank You

[heidilynn0_3]

Hi , yes it is always higher.  Ebay tracks the rate provided by Bloombergs and should be used only to assist bidding decisions.

Exchange rates you see quoted are nominal rates as between banks not retail/cash rates that you and i pay.

PayPal buys from their bank which adds a bit and charges a  conversion fee (2.5%) as do bank, credit cards or the Post Office.

[4margentum]

 1) I regret that many Canada sellers default list in USD, this creates a problem for Canada buyer right away.

2) the actual exchange rate should be linked as well as the past rate graph in an easy to observe fashion

3) the Paypal rate seems to be always lagging behind if favourable for buyer but quick to change they other way around.

4) I was not able to get a clear answer on the actual mechanism other than referring to Bloomberg

I check XEdotCOM and notice an added difference of about 0.003 to 0.006 atop the 0.025 exchange fee applied.

This sucks

Transparency is a must

5) if things go as it shows the USD may be history soon anyway

[heidilynn0_3]

My comments are not in defense of PayPal , but simply stating facts as i understand them...PayPal is not a bank . Their rate is based on a twice daily quote from their bank whereas the nominal bank rate is fluid.

[heidilynn0_3]

Canadian sellers default US because the US is by far, the largest economy in North America and prefer dealing in their own currency.

[dolalmighty]

but this system was never in existence before as far as i could remember. fair is fair and as far as i can say the price that shows after a buyer wins an item should be the final price to be paid at check up through paypal. looks like canadians like me are being ripped off because i am sure each bidder knows how much they wanna pay for an item. so to win at a price and pay a different price at check point is deceiving and needless to say being cheated. pay pal or ebay should seriously look into this. just let us know all hidden cost before we bid and there would be no arguement and accusations. thank you.