@komics4sale wrote:
I realize that the best ebay can do is offer an approximate exchange rate.....
but I think it should be closer to a 1% variance than what it usually shows.
Currently the exchange premium to convert on Paypal is about 3.5% more than what ebay shows.
Ebay is aware that most buyers use Paypal to pay for their ebay items. Ebay also knows that paypal uses their own exchange formula which tacks on a bit for Paypal's coffers. Unless ebay is a 5th grader, it knows that the approximate exchange that they post on their website is misleading incorrect.
My guess is they are trying to encourage bidders from upping their bids thinking that they are spending less than they actually are. (3.5% more)
There is no way that ebay would post their exchange rate 3.5% higher than Paypal's conversion rate.
The conversion rate that eBay uses is the midway point between the currency's "buy" and "sell" rates on currency exchange markets. The proper term is "midmarket rate" and it's the same exchange rate as that used on sites such as xe.com use and the exchange rate you'll see reported in the business section of a newspaper.
Since the use of the midmarket rate is pretty much standard in other situations, for eBay to use something other that that would likely cause confusion for those with some experience dealing with foreign currencies.
PayPal states on its website that its spread or mark-up on currency exchange is 2.5% up or down from market rates, depending on whether the "buy" or "sell" rate of the currency applies.
Keep in mind that PayPal does give users the option of having their credit card issuer do the currency exchange, so while you're correct that most eBay listings have PayPal as a payment method, there are circumstances where PayPal will not be doing the currency conversion.
