Microstock Photography Forum - General > General Stock Discussion
Paypal currency rate, from Dollar to Euro
whosvegas:
This time of the year, is is time for my annual payout.
I use Paypal for it
If Paypal convert Dollar into Euro, they use a currency rate of 0,81...
But the Google currency converter use a rate of 0,85, so you will pay to Paypal 0,04% costs
And i dont like that
Is there a way to avoid those costs?
Firn:
It is not only a currency rate, it's actually a fee from Paypal that lead to what appears to be a currency rate that is worse than the average rate.
From PayPal's FAQ:
--- Quote ---How does PayPal calculate currency conversion/ exchange rate?
If a currency conversion is needed for your payment, we'll use a retail exchange rate. The retail exchange rate (set by an outside financial institution) is our wholesale cost of foreign currency plus a currency conversion fee. This fee depends on the currency you are converting into.
--- End quote ---
There is no way to avoid this if you want to withdraw money in a different currency from PayPal to your bank account.
increasingdifficulty:
--- Quote from: whosvegas on November 10, 2020, 11:40 ---This time of the year, is is time for my annual payout.
I use Paypal for it
If Paypal convert Dollar into Euro, they use a currency rate of 0,81...
But the Google currency converter use a rate of 0,85, so you will pay to Paypal 0,04% costs
And i dont like that
Is there a way to avoid those costs?
--- End quote ---
That's 4%. And no, you can't avoid that. I have tried to find a solution for years. Please let me know if you find one. That is of course one of the main ways they make money. The Google rate isn't "the real" rate. There is no real rate, only an average of all the banks, etc. in the world. You will never get what you see on Google.
It should, however, be closer to around 2.5%.
---
When customers spend $10,000 on clips from let's say Pond5 just as an example, I can buy food with:
$10,000 minus P5 cut (60%) minus PayPal fees (= bad rate) minus Social minus Income Tax = Roughly $2,000.
Customers spend $10,000. In the end I can buy food for $2,000.
That is life. :)
pics2:
I calculate this in my earnings straight at the end of the month, even more around 5,6% for various bank fees conversions etc. For some reason people don't calculate it, they just close their eyes and pretend it doesn't happen. What a genius way few rich world monopolists take money from working class. No wonder they are getting richer every day and poor are getting poorer.
Copidosoma:
Go to a bank and try to get exactly the "official" currency exchange rate. You won't.
You are paying a fee for the conversion. It is nearly unavoidable.
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