Paypal - let your CC convert currency

__________

This might be relevant to some people who purchase from ebay uk/us a lot.

I was buying something last week that came to around £84.50 sterling, paypal wanted around €97 giving me some rubbish exchange rate of 1 euro=£0.87 . When I selected to let my credit card handle the exchange, it was £84.50 obviously then when I checked my credit card statement it was only roughly €93 taken off giving me 1 euro=£0.90.

Now €4 saving isn't much but when you do a lot of transactions online or are buying something for a few hundred euro the savings become big.

Hope this helps someone.

plu

The only advantage with using the paypal exchange rate is if you have to get a refund. With a credit card you would end up paying the difference between buying & selling rate of EUR/GBP. With Paypal you get back the same amount in Euros.

CivilServant

Sometimes you even get more back.

Gadgetman496

__________ wrote: »

When I selected to let my credit card handle the exchange.

At what point in the transaction do you get the option to choose between credit card & PayPal or is it something you setup?

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Berty

I bought something which later turned out to be counterfit. I started a resolution on paypal and the seller within 24 hours, after first asking for fake goods back, refunded 100%.

The credit process for that would have been very difficult. I use paypal for peace of mind but I see your point OP.

Bluetonic

Berty wrote: »

I bought something which later turned out to be counterfit. I started a resolution on paypal and the seller within 24 hours, after first asking for fake goods back, refunded 100%.

The credit process for that would have been very difficult. I use paypal for peace of mind but I see your point OP.

There is no absolutely no different to the process using the CC provider for the fx rate, so therefore you have the same peace of mind.

Bluetonic

gadgetman496 wrote: »

At what point in the transaction do you get the option to choose between credit card & PayPal or is it something you setup?

-

At the 'Confirm Payment' screen when you pay via eBays interface. You'll see it in the middle the screen.

consultech

Berty wrote: »

I bought something which later turned out to be counterfit. I started a resolution on paypal and the seller within 24 hours, after first asking for fake goods back, refunded 100%.

The credit process for that would have been very difficult. I use paypal for peace of mind but I see your point OP.

I don't think you understand the process: You have two options when paying for something via paypal; Either let the foreign currency amount be taken from your CC at your bank's rate for that day, or accept the rate that paypal offer you (which should in theory be the same, but isn't)

Both options still utilize paypal as a go-between.

Ste.phen

I always use my CC provider's rate over paypals (or amazons), i checked it a few times and I've always done better with the bank's rate

iknorr

yup same here , always use it on amazon also.

its another way paypal and amazon sneak in a few extra euros..../pounds.

Tea 1000

Berty wrote: »

I bought something which later turned out to be counterfit. I started a resolution on paypal and the seller within 24 hours, after first asking for fake goods back, refunded 100%.

The credit process for that would have been very difficult. I use paypal for peace of mind but I see your point OP.

You seem to be misunderstanding. It's still buying with paypal, but if you buy something in a foreign currency it gives you two options, use paypals exchange rate and let paypal charge your card in euros, or just let paypal charge your card in the foreign currency and let your credit card provider give you their exchange rate.
The OP is saying that the latter option is cheaper.

Tea 1000

consultech wrote: »

I don't think you understand the process: You have two options when paying for something via paypal; Either let the foreign currency amount be taken from your CC at your bank's rate for that day, or accept the rate that paypal offer you (which should in theory be the same, but isn't)

Both options still utilize paypal as a go-between.

Sorry, didn't see this post before I posted mine!

Kotek Besar

plu wrote: »

The only advantage with using the paypal exchange rate is if you have to get a refund. With a credit card you would end up paying the difference between buying & selling rate of EUR/GBP. With Paypal you get back the same amount in Euros.

Correct, with the exception of Ulster Bank issued credit cards. They credit back the difference in such cases. Tesco issued credit cards may be the same too, since both are under RBS.

Kotek Besar

__________ wrote: »

This might be relevant to some people who purchase from ebay uk/us a lot.

I was buying something last week that came to around £84.50 sterling, paypal wanted around €97 giving me some rubbish exchange rate of 1 euro=£0.87 . When I selected to let my credit card handle the exchange, it was £84.50 obviously then when I checked my credit card statement it was only roughly €93 taken off giving me 1 euro=£0.90.

Now €4 saving isn't much but when you do a lot of transactions online or are buying something for a few hundred euro the savings become big.

Hope this helps someone.

I thought this was common knowledge anyway? Nice username by the way.

lotsofthegreen

Kotek Besar wrote: »

Correct, with the exception of Ulster Bank issued credit cards. They credit back the difference in such cases. Tesco issued credit cards may be the same too, since both are under RBS.

Tesco issued credits cards are no longer "under RBS" and Haven't been for some time. They are a sole venture of TPF Limited. THe above post may be correct otherwise, i'm not sure

Kotek Besar

lotsofthegreen wrote: »

Tesco issued credits cards are no longer "under RBS" and Haven't been for some time.

Didn't know that!

Berty

Didn't know all of the replies to my post above.

I just always thought with (180 ebay points) that if was Paypal's way or some other way. I will bear this in mind for my next purchases on Amazon and Ebay.

Rashers72

You seem to have got a fantastic exchange rate from your bank/credit card provider. My cc provider charges an extra 1.75% for GBP/EUR transactions, and I think it's 2.75% extra for all other currencies.
I have started using the Paypal rates now, due to these extra charges.

NothingMan

Same here, I was buying an item which came to £409 and I checked xe.com and it was approx €452. Paypal wanted €462 so I thought I'd chance credit card rate and was charged €466 on an MBNA card, so not always a win for CC.

kierank01

NothingMan wrote: »

Same here, I was buying an item which came to £409 and I checked xe.com and it was approx €452. Paypal wanted €462 so I thought I'd chance credit card rate and was charged €466 on an MBNA card, so not always a win for CC.

Has anyone ever been able to get (close to) an xe.com rate?

Davy

Rashers72 wrote: »

You seem to have got a fantastic exchange rate from your bank/credit card provider. My cc provider charges an extra 1.75% for GBP/EUR transactions, and I think it's 2.75% extra for all other currencies.
I have started using the Paypal rates now, due to these extra charges.

You can use this Visa link: http://www.corporate.visa.com/pd/consumer_services/consumer_ex_rates.jsp

It lets you enter the amount your provider charges; eg 1.75 and then it gives you the exact amount

Kotek Besar

kierank01 wrote: »

Has anyone ever been able to get (close to) an xe.com rate?

That's mid-market. You'd never get that.

MartMax

For Visa customers, this might be handy when comparing Paypal rate and your credit card provider exchange rate.

http://www.visaeurope.com/fxcalculator/main.jsp

All you need to get the right exchange rate applied is the conversion fee. If I was an AIB paying an EU supplier in a foreign currency, the conversion fee I should enter was 1.75%

http://www.aib.ie/personal/credit-cards/Credit-Card-Fees-and-Charges

This is not 100% guaranteed rate, but would be close enough. Also important is that when your credit card got charged for.

Hope that helps.