Paypal Currency Rate or Your Banks Currency Rate?

corkproducers

Hi there,

anytime you go to buy a product in a different currency on ebay or whatever,

you get 2 options from paypal to convert the currency.

1. Paypals Currency Conversion Rate

2. Your Bank's currency conversion rate.

Which is the cheapest usually?

Say for paypal vs AIB, BOI, etc..?


I have always found paypals rate in euros to be significantly lower than the rate on XE.com, and yahoo's currency converter, against the euro.

Its about 4/5c's (euro) less per dollar, meaning you end up paying this amount more.

Sure its only 4/5cs per dollar, but this all adds up over time.

Anyone ever compare both?

You wont find out what your banks rate is until you get your credit card statement.

jor el

The XE rate is the inter-bank rate, and you will never get this rate anywhere, it's just a guideline. If you're spending 100euro, the difference will not be that much.

the difference between the bank and Paypal's rate will probably be even less, and not worth considering. Also note that all banks in Ireland apply a currency conversion fee to non-euro charges on your credit card, it's between 1 and 2% generally. If you let Paypal charge you in euro, you'll avoid this fee.

heathersonline

Theres actually a fairly savage difference between the rates that paypal offer and your own card, always go with your own, big savings if the item is any way expensive. I found paypals rates to be extortionate!

corkproducers

heathersonline wrote: »

Theres actually a fairly savage difference between the rates that paypal offer and your own card, always go with your own, big savings if the item is any way expensive. I found paypals rates to be extortionate!

This is what i'm thinking too.

Thanks for the replys lads!

jor el

heathersonline wrote: »

Theres actually a fairly savage difference between the rates that paypal offer and your own card, always go with your own, big savings if the item is any way expensive. I found paypals rates to be extortionate!

I've found Paypal's rate to be quite similar to XE on a number of occasions. Unless you do two purchases at the same time, one with card rate and one with Paypal rate, then you won't know the comparison as the rates change daily.

dazberry

I bought a guitar on ebay last week from the UK, AFAIR the paypal rate worked out just over €800. I went for the bank option and its now on my online CC statement at €785

D.

jor el

Just had a look at my recent transactions, to see if I should change, and on 5th June, the difference between Paypal's rate and XE was 3.3%. On June 19th, the difference was 1.9%. So it can vary quite a bit. Where the banks were on those days I couldn't say, but I wouldn't think you'd get much better than 1.9% in the difference. Probably 3.3% is a lot though. Both on Sterling conversions.

ejmaztec

I use the following link when I'm trying to figure out what the damage is likely to be on my Visa card. If you compare this with the Paypal figure, you'll know which way to go.

http://corporate.visa.com/pd/consumer_services/consumer_ex_rates.jsp