Why is ebay charging 3.7 % instead of 3% to exchange my moneys canadian to us funds.

[girlytoo]

Why is ebay charging 3.7 % instead of 3% to exchange my moneys Canadian to US funds.

It's the principle of it not the money. Purchase price was  4.38 US which is 5.63 ca (rounded to the higher) at XE Currency Converter. (which was the same as ebay) I was charged 5.84 Canadian.

5.63 x 3 %    = .17     5.63 +  .17= 5.80 I thought it should have been.

5.63 x 3.7% = .21     5.63 + .21 = 5.84 This is what I was charged.

Like I said it isn't the moneys in my case because it is only 4 cents but if this was thousands of dollars I would be a little put off.

Is there another fee that Ebay charges that I am not aware of?

I wonder how they got this.

Thanks in Advance

No is the price of money I checked XE very reputable and Ebay did have the same figure.

[femmefan1946 · Accepted solution]

xe.com gives a mid-market rate.

Not the retail rate you would get at your bank.

It is a matter of convenience, sometimes. For example, when I was doing travel expenses for government officers (up to the cabinet minister level) we used xe.com as the standard exchange, not what the officer actually paid on her credit card or in cash.

Like the 'notional penny' , the simplicity of the arrangement made up for the occasional loss or gain.

Also, the mid-market rate, which reflects the costs of buying or selling currency  by large financial institutions, fluctuates constantly, several times a day or even several times an hour with some very volatile currencies.

That's why the financial news covers those fluctuations. There are those who make their living buying and selling currencies.

Here's a fun exercise.

Take $100 CDN and ask how much USD you can buy with it at your own bank.

Now go across the street and ask at another bank.

Now go to a credit union and ask therre.

And finally, go to a foreign exchange shop and ask there.

Don't be shocked to  get four different prices.

And if you do the same tomorrow, you may well get four more different prices.

Also, the PP exchange includes both exchange and fees.

Now if this was thousands of dollars I would be a little put off.

And you would get yet another four prices from the various financial institutions.

The service fees are usually fixed, but the rate will vary, and it is often lower for very large transactions.

PP is generally considered to be about the same cost as using a credit card to buy and sell cross-border, in terms of rates and fees.

[girlytoo · Accepted solution]

Thanks and I do understand the concept 🙂 I didn't realize they were aloud to charge you more than the real rate of money and then also charge for the exchange.

[femmefan1946 · Accepted solution]

There is a service charge to pay for the labour.

You pay that on a credit card too, but not at the bank counter.

But there is no "real" rate.

The rate you pay depends on where you are buying (or selling), how much you are buying (or selling), if you are exchanging cash or a cheque/money order, and sometimes your age (senior discounts).

[byto253 · Accepted solution]

Then take the lowest rate and go back to your bank and have them match it and they will.