Why does eBay and Paypal have different prices for their exchange rates?

[iwantstuff11]

Have you, being a Canadian eBay user buying from a US based seller ever wondered why the estimated price eBay provides is always short of the actual cost you pay through Paypal? Why has this not been addressed and why does eBay not get on the same page as Paypal to correct this. On multiple occasions Ive purchased thousands of dollars of items from a buyer expecting to pay a certain price only to find out that price is sometimes hundreds of dollars more than the checkout invoice eBay provides? It’s ridiculous. I end up with 2 invoices, one for purchase. One checkout invoice from EBay which states a certain price and then an inflated one from Paypal? You’d think these 2 corporations who were once one in the same would provide their customers with a honest pricing basis for the items up for sale on their site. Is this the reason they split so they could pass the buck to each other? This is my experience in the matter, eBay says calm Paypal and vice versa. It’s blatently obvious there is a backdoor deal going on wether legal or not and This needs to stop and we as a community need to stand up to this backdoor financial gouging by these corporations.

[happy_pigeon]

This is an interesting one. You've already received many good answers in this thread, so don't discount them OP, as they could have something to do with it.

Based on the light research I've done, it's also possible that it could be due to a communication error between a seller's third-party selling tool (if they have one) and PayPal itself.

I'll ask around the Product team and report back if I hear anything different. But my suggestion to you is that if you are seeing such crazy discrepancies in the PayPal total, you should ask the seller to invoice you manually. There's no need for you to be paying hundreds of dollars (or even a cent, really) when you don't know what it's for.

Sorry to be "that guy", but these kind of situations are a strong argument in favour of eBay centralizing the payments 

[momcqueen]

Thank you, happy_pidgeon, for your answer. Good insight. Yes, I too, thought of the payment intermediary changes coming but didn't want to be the one to draw the fire. Hahaha. Third-party selling tool is an interesting scenario. I look forward to hearing more about that if you flush something out there. 

[iwantstuff11]

It’s quite a controversial topic. In my eyes anyways, I do a lot of buying and when the exchange is volatile it’s even worse. It just baffles me that 2 enormous online retailers cannot get in sync with their payment conversion pricing. I understand markets fluctuate etc. And money has to be made by the company accommodating the payment method. But;
1) eBay makes a percentage based on the final selling value on the sellers end. (EBay paid)
2) Paypal charges the seller a fee to facilitate the payment transaction. (Paypal paid)
3) The buyer must now pay an exchange rate, ALWAYS more than what the actual exchange is. Plus a 2.9% fee for the exchange.

They’re charging all parties involved and making money hand over fist doing it. Both companies are international and have bases worldwide. That being said they deal in every currency being exchanged or utilized on their website. This means they don’t really have to “buy” currency to facilitate these payment methods and various currencies. They’re not like a bank, handing out physical cash which had to be pre-obtained in order to exchange for another currency. They have all these currencies going into multiple bank accounts each of its own countries currency.

All these transactions are digital and don’t require any human touch. They all have automatic algorithms to control and distribute funds accordingly. That being said why the extra charges to the buyer for a currency exchange? I personally am in Canada and to exchange to USD the rates are ridiculous. Not even close to the BOC(bank of Canada’s) exchange rate. I also have friends in the USA who tell me when they exchange at their bank they are not charges any fees, simply what the posted rate is for that particular currency set by that countries National banking system.

Yet all this being said they cannot sync their numbers from one site to the other and still feel it’s “alright” to charge basically everyone involved a small fee. I have a feeling, Facebooks marketplace platform will soon overtake eBay as there are no fees on the item, shipping cost or any currency exchange. All this can be done on a 1 on 1 basis between seller and buyer, the exchange, method of payment and shipping method with absolute no fees attached. Now until that changes...

EBay really doesn’t give a S#!+ about any of the buyers compaints(my own) or the feedback regulations which provide insight and into a seller and their style and reputation. I’ve had negative debacle removed from a seller by eBay multiple times. So if you think a sellers rating is good. You may be in for a surprise.

Getting a bit off topic now but that should be posted out.

One last thing, the GSP. Wow, biggest cash grab I’ve ever seen. I wonder if the import fees they charge actually make it to the international government for which they are charging it “for”. The fact alone that you cannot combine shipping on items sold under these conditions and that the import fees and shipping cost FAR exceed the actual shipping cost and import tax speaks for itself. Taxes are only charge/or typically only apply to any items validated over 2000$ or are imported for buisness/commerce.

Look into all this and you’ll see for yourself that his is just 1 big conglomerate making huge sums of money over and above what it takes to operate a platform of this type. Amazon is a prime example and their biggest competitor. Check out their fees and exchange rate and payment options and compare.

Change needs to happen and it starts with conversation. That is what I’m trying to initiate and perhaps people will realize the extent we’re all being nickel and dimed and who’s actually lining their pockets.

If I had the resources I’d start a new C-Bay with more ethical practices, fees and be more user friendly and actually take concerns of its community more seriously.

I hope you all at least read and try to comprehend th points I’m trying to make and realize we’re all being duped.

[momcqueen]

I don’t agree anyone is being duped but, like I said earlier, if you don’t like the exchange rate or paying conversion fees, buy from Canadian sellers located within Canada. This eliminates what you perceive to be a problem.

[momcqueen]

Also, you keep speaking like a buyer’s only option is to use PayPal. It’s not. That’s the reason that eBay cannot predict and display that exchange rate plus conversion fee that you will pay and to whom. Shop around.

[iwantstuff11]

Until a few weeks ago it was.

[momcqueen]

Credit cards processed by paypal doesn't mean your credit card conversion fee gets overlooked.  ebay cannot forecast which credit card you're going to use and what your conversion fee will be. 

If you shop in USD, you need to pay an exchange rate plus conversion fee.

The exchange fee is set by the Bank of Canada and volatile, but what you choose to pay and to whom you choose to pay for your currency conversion is your choice, and ebay cannot make it for you at present. There are simply no other ways we can re-state the same fact.

If you don't want to pay exchange plus currency conversion, shop on ebay.ca from Canadian sellers located in Canada and listing in CAD.

[iwantstuff11]

Completely understand. Don’t agree, but we can agree to disagree. My point is they don’t offer a competitive rate, which they easily could. Which could be “estimated” more precisely. Also, sure I could shop eBay.ca but would you not agree that more exposure for sellers benefits the community overall. You’re talking cutting a whole country off from another. So why not offer a more compedative rate (better than the banks) because you can, to accommodate the cross boarder commerce? Canada has items Americans want and vice versa. Why would you suggest to simply cut off cross boarder commerce in that sense? Narrow minded thinking as such is why the economy could be doing better than it currently is. Which would benefit us all. I see no valid reasoning behind it except to address my complaint of being nickel and dimed by eBay and Paypal. In a sense sure, you win the conversation and my argument. But you lose in the broader spectrum of what I’m referring to and wishing to be achieved.

[momcqueen]

EBay is not charging you an exchange rate. They are showing you market rate.

PayPal is doing the conversion of your currency ONLY if you choose to do it. This is your choice, or not. Talk to your bank, your credit card company, or Uncle Richie Rich. You get to decide where you want to spend your money.

It matters not to me whether you choose to shop in CAD or USD.

What matters is putting the facts straight. The exchange rate is one matter, currency conversion is another. If yiur complaint, at its root, is that you feel like you got ripped off somehow by someone, I suggest instead due diligence with your next cross-border Shopping.