Paypal's exchange rate is totally skewed

bartosimpsonio · Dec 22, 2015

Anyone else do business in USD and EUR notice how skewed Paypal's exchange rate is? Skewed in their favor, that is!

I have a balace in Euros I use to pay for USD goods. Yesterday I paid for a service in U$ and the exchange rate was almost 1:1

I thought it was curious, but then today I checked the current exchange and the Euro is 8.8% above the US Dollar. Meaning Paypal is making nearly 10% just by converting one currency to the next.

They charge fees for all transactions, why must they make 10% for just exchanging currencies? They have the balances in U$ and Euro, they're not actually exchanging anything internally, they're just arbitrarily taking from customers!

Why doesn't any other large corp come up with something to compete with Paypal? It really gets tiring after so many complaints and excessive fees.

dys872 · Dec 22, 2015

They will always exchange in their favor. Sad but true.

BuildMoreLinks · Dec 22, 2015

It's a for profit company and that's how they make money (posted revenues of over 7.3 billion in 2014).

bartosimpsonio · Dec 22, 2015

BuildMoreLinks said:
It's a for profit company and that's how they make money (posted revenues of over 7.3 billion in 2014).

That's right. We need competition for Paypal so they lower their fees. Making up to 10% on exchange rate alone is a loud cry for competition. Anyone who comes along and offers similar services with lower fees takes the crown.

Hawkster · Dec 22, 2015

Well i sure do hope someone offers some competition - ive done my fair share of complaining about paypal over the last year or so.

I would jump ship quicker than a rat up a drain pipe if the opportunity came

bartosimpsonio said:
That's right. We need competition for Paypal so they lower their fees. Making up to 10% on exchange rate alone is a loud cry for competition. Anyone who comes along and offers similar services with lower fees takes the crown.

Banned member 185991 · Dec 22, 2015

Of course its skewed, same with banks and everything else.

They will fuck you at every opportunity they get, PayPal does not exactly have a good reputation for being fair now...

W9go · Dec 22, 2015

they are bastards but there is no alternative ..

LostConnection · Dec 22, 2015

bartosimpsonio said:
That's right. We need competition for Paypal so they lower their fees. Making up to 10% on exchange rate alone is a loud cry for competition. Anyone who comes along and offers similar services with lower fees takes the crown.

Yup, agreed. I've hated them since the moment I started using them, but pretty much all my clients (outside of Finland that is) want to pay with PayPal and it just is convinient for everyone unfortunately.

BassTrackerBoats · Dec 22, 2015

Take a look at Transferwise.com as that is excellent for sending money and the rates are pretty strong. I use it almost every day and the rates are great, the process is smooth and the customer service is top notch.

It is bank to bank, unlike PP which is account to account, but if you have people with whom you do business with on a regular basis you will love the service.

iBrazilian · Dec 22, 2015

BassTrackerBoats said:
Take a look at Transferwise.com as that is excellent for sending money and the rates are pretty strong. I use it almost every day and the rates are great, the process is smooth and the customer service is top notch.

It is bank to bank, unlike PP which is account to account, but if you have people with whom you do business with on a regular basis you will love the service.

I was just about to suggest transferwise, I use it everyday as well.

bartosimpsonio · Dec 22, 2015

BassTrackerBoats said:
Take a look at Transferwise.com as that is excellent for sending money and the rates are pretty strong. I use it almost every day and the rates are great, the process is smooth and the customer service is top notch.

It is bank to bank, unlike PP which is account to account, but if you have people with whom you do business with on a regular basis you will love the service.

Thanks for the pointer. Will have a look.

shanna_doll · Dec 22, 2015

It's nothing new, bro.

lord1027 · Dec 22, 2015

I'm so pissed with Paypal for multiple reasons, can't wait for a real competitor to show up.

prnefp · Dec 23, 2015

PayPal has ALWAYS given me a HORRIBLE exchange rate. I was in India, expanded to the UK (currently in Liverpool, about to set up a branch but still doing biz on my hometown account) and I have never got a good rate, but it's easier to consider that part of my costs instead of dealing with PayPal's un-imaginative, ridiculously innovation-damned attitude (I wish the guys from Stripe dominate the world right now).

So we all have to wait until Stripe KILLS PayPal and we're all happy until Stripe sells out too

phatzilla · Dec 23, 2015

Ah, the power of a monopoly

wowhaxor · Dec 23, 2015

Every business hits you hard on exchange rates. It's not unique to PayPal.

PinguSpy · Dec 23, 2015

they eat through fees, and through exchange too

goodperson · Dec 23, 2015

Actually, there are competitors with paypal like google wallet, webmoney, perfectmoney, bitcoins, etc. But paypal is the most popular and huge people use it. If you don't use paypal , you're not easy to sell or buy any items on the internet. That's all.

bartosimpsonio · Dec 23, 2015

goodperson said:
Actually, there are competitors with paypal like google wallet, webmoney, perfectmoney, bitcoins, etc. But paypal is the most popular and huge people use it. If you don't use paypal , you're not easy to sell or buy any items on the internet. That's all.

Why aren't they as widely accepted in your opinion?

Aty · Dec 23, 2015

why must they make 10% for just exchanging currencies?

Because they can.

Did you consider changing your currency to USD?

Paypal's exchange rate is totally skewed

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