What the fuck is wrong with Paypal?

[santhej]

I am really pissed at what is happening right now..I am a resident of India.I receive payments from my clients in dollars.So before transfering to my bank account Paypal converts it into Indian Rupee and then transfers it to the bank account.But the really strange thing is that while receiving payments and converting transfering money to ban account the value of Indian Rupee will be less(exchange rate will be less) ,but while sending the payments to someone the exchange rate will be very high.
This is what happened to me.
I received a payment of $10 today.While transfering the money to bank account the exchange rate is as follows:
$1-Rs 58
So the amount transfered to my account is Rs 580.
I send a payment of $10 to someone.While sending the payment the exchange rate is as follows:
$1-Rs 62
The amount taken from my bank account Rs 620.

Both these transcations happened in a matter of 2 mins.So how are you guys dealing with this problem?Is there somework around for this

 

[lietuvis002]

Receive bigger payments?

 

[anilpendu]

debit / credit card charges for the purchase around 4-5%.

 

[Paranoid Android]

Thats where they make money buddy. Work on ways to grow your volumes and move your finances out of the country

 

[santhej]

Thats where they make money buddy. Work on ways to grow your volumes and move your finances out of the country

they already deduct payments in the form of Paypal charges when i receive payments.Even after that doing something like this is not at all good.

 

[santhej]

Receive bigger payments?

the more money i receive the more these assholes are going to shave from me

 

[mapp2819]

That's how they make their billions unfortuantely. Are there any other payment processors that are available for you to try, maybe once volumes increase?

 

[santhej]

i just called these Paypal people..they were telling me that if you are sending money they will be charging 3.5% from the normal converted amount..totally unfair...i really hope some reall good alternative for paypal comes up

 

[santhej]

That's how they make their billions unfortuantely. Are there any other payment processors that are available for you to try, maybe once volumes increase?

to be frank no...most of my customers have only paypal account..so its just not possible to try another alternative

 

[Rank 360]

Hey Bro,

This will happen always when we do the transaction. Because the rate of paypal will be deducted from the amount sent and received to our account by PayPal.

All will get this charges, so it is not a problem. These are the charges that is done by PayPal according to the country. The best solution to reduce this is asking the client to do Wire transfer to your ban account.

 

[Jyeshtha]

It's just like currency exchange in the banks. If you go to a bank, there will be a display board, where you will see Rs. 2-3 extra for buying dollars and the same Rs. 2-3 less while selling it when compared with the actual dollar rate. It's an exchange fee.

If you want to get an idea, then you can check in a bank, especially HDFC people display it in a place where it's easily visible.

 

[Theerthaa]

Yes absolutely. I dont like the Paypal to continue their services with a too much of charging.

 

[mig99]

yea they have overrated spread rates, that's how they milk your money. Basically they have already grown to the level of, "I can afford not to do your business if you're not happy with it "

 

[DanTe_0101]

they are taking advantage of their popularity and large customer base and knows that people won't be moving easily to another payment processor anytime soon so they are charging ridiculous amounts as their BS fees...

 

[imserious]

It is not paypal which is charging you such rates.

Paypal is not authorised for forex exchange in india. Therefore, it has to go through a bank (Citi in this case).

Whenever you do a forex transaction with any bank anywhere in the world - they load a percentage as their exchange margin - in this case it is likely 3.5% - on the both the buy and sell side.
There are a lot of costs associated with a forex transaction. (You need a human resource in Treasury back office - a dealer in front office -
someone in branch to actually post the transaction and finally you need to ensure that the forex transaction does not violate any of the million RBI regulations or the bank is in big trouble)

There is an option for you if you can receive direct USD from yor clients.

RBI allows something called EEFC (Exchange Earners Foreign Currency Account) - Check with your local bank branch.

If you do a lot of forex sale and purchase, you can open such an account and save yourself the exchange fee.

 

[lover]

I don't see any issue with it, Paypal is private firm and they take the fees for receiving payment and currency exchange just like local brokers.

Atleast we can use Paypal, imagine doing business without Paypal?

 

[Stizerg]

Make sure to convert your funds into currency you are going to use for transfer before you do an actual transfer. Paypal takes additional fee for transactions if source currency is different to destination currency and probably amount of this fee may differ depending on the type of the transaction.

 

[Traww]

Yeah , same thing happen to me !! Paypal really sucks and we can't even store money on it :/

 

[black101]

cmon its normal, just transfer a bigger amount not 10 bucks

 

[ariang86]

You can not sell a currency at the price you purchased at the same time. There will be a spread. The spread is usually low for more liquid currencies or major currencies like Euro, US dollar, Japanese Yen etc. for Indian Rupee its usually very high.

Do a quick search on bank ask and bid rates.

P.S. Its not that I am trying to defend Paypal in anyway .. they are top in my "allergy" list.