buyer pays fee for currency coversion

[realjazz-123]

I have just learned from PAYPAL  that buyers outside of Canada will have to pay a 2.5 % fee for conversion from their own currency to Canadian $$. From June when we must list only in Canadian $$, this will need to be part of pricing decisions. I cannot see how this extra fee will encourage more non Canadian buyers. Am I missing something in this new equation?

[mcrlmn]

My Canadian buyers did just that before the change on eBay.ca.

Now my U'S buyers do it.

Buyer always pays when converting currency.

I will be away for most of June. That cruise was paid for in U.S. and currency off ship will be Euros.

It sucks but that's the way it is.

Hopefully the smart ones will be watching our exchange rate.

Don't forget the added fee for items shipped south.

[pierrelebel]

"that buyers outside of Canada will have to pay a 2.5 % fee for conversion from their own currency to Canadian $$. "

Not quite.

Under the "old system", if you, a Canadian, list in US$ and a British purchases the item, the British buyer would have to pay PayPal 2.5% conversion fee (included in the conversion value offered by PayPal).  Then you, the Canadian seller, would have to pay another 2.5% conversion fee to PayPal when you transfer those US$ into Cdn$ prior to withdrawing.

In such circumstances, PayPal collected two conversion fees.

Under the "old system", if you, a Canadian, list in US$ and a Canadian purchase the item, the Canadian buyer would have to pay PayPal 2.5% conversion fee (included in the conversion value offered by PayPal).  Then you, the Canadian seller, would have to pay another 2.5% conversion fee to PayPal when you transfer those US$ into Cdn$ prior to withdrawing.

In such circumstances, PayPal collected two conversion fees.

With the "new system" if a Canadian seller lists in Cdn$, the overall numbers of conversion fees paid to PayPal will go down substantially.

When a Canadian buyer buys, no conversion fee is involved - compared to two before

When a British (or any other overseas buyer) buys, only one conversion fee is involved compared to two previously.

When an American buyer buys, only one conversion fee is still involved (same as before).  The difference is that the fee in included in the conversion value paid by the buyer instead of deducted from the Canadian seller.

[cumos55]

Did Paypal not reintroduce the cross-border fee...  between US and Canada?

It was gone for many years....

[pjcdn2005]

Yes. It's .8%

[pierrelebel]

"Did Paypal not reintroduce the cross-border fee...  between US and Canada?   It was gone for many years...."

From 2000, PayPal always charged American sellers a 1.00% cross border fee when selling to Canadians and other international buyers

Canadian sellers did not pay such cross border surcharge until a few months ago when PayPal introduced 0.80% cross border fee for Canadian sellers when selling to American buyers.