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Microstock Photography Forum - General => General Stock Discussion => Topic started by: luissantos84 on September 17, 2012, 07:38

Title: Paypal exchange rates
Post by: luissantos84 on September 17, 2012, 07:38
Paypal - 1 USD = 0.743740  EUR
Market - 0.763846 EUR

Paypal cut - 0.020106

Paypal - 1  GBP = 1.20529  EUR
Market - 1.239114 EUR

Paypal cut - 0.033824

why this difference? any idea?
Title: Re: Paypal exchange rates
Post by: gostwyck on September 17, 2012, 08:05
Maybe the PayPal rates are only adjusted daily or at least less frequently than the market rate (which can obviously change by the second)?

I think you'd have to record each rate over a number of days or weeks to see if the differential was constant or whether it changed. Generally speaking the PayPal rate is supposed to be the 'bank commercial rate' as used for credit card transactions, etc.
Title: Re: Paypal exchange rates
Post by: luissantos84 on September 17, 2012, 08:07
exactly but I am talking about the difference between US $ and Pound, why is paypal taking almost 4 cents from Pound and about 2 from US $
Title: Re: Paypal exchange rates
Post by: dirkr on September 17, 2012, 08:13
With your numbers Paypal's fee for USD conversion is around 2,6%, for GBP around 2,7%.
Not a big difference. Add to that Gostwyck's comment about timing (they may adjust their conversion rates once a day) it looks like they are taking a similar cut for both currencies.

Looking at the absolute numbers is not what you should do...
Title: Re: Paypal exchange rates
Post by: gostwyck on September 17, 2012, 08:21
With your numbers Paypal's fee for USD conversion is around 2,6%, for GBP around 2,7%.
Not a big difference.

Doh __ good point!
Title: Re: Paypal exchange rates
Post by: luissantos84 on September 17, 2012, 08:27
US $ - 0.7437 / 0.7638 = 2.63%

GBP - 1.2052 / 1.2391 = 2.73%

a real doh, sorry guys
Title: Re: Paypal exchange rates
Post by: nataq on September 18, 2012, 22:47
I started to use old fashioned checks. I won't support a company cashing twice only for non-US customers. Even if I had a US$ account in Europe I'd still have to pay conversion fees, while a US$ account in the States would't. So they took around 3% of my income for years.
Plus: they are charging fees from the agencies too. Charging once should be enough!!!
Title: Re: Paypal exchange rates
Post by: Poncke on September 23, 2012, 03:40
The exchange rates on XE.com are without any fees. But there is not one bank that offer these XE.com exchange rates. And the fees on Paypal on the exchange rates are one of the lowest in banking. If you were to receive a cheque in dollars and cash it out at an European bank you would pay a lot more in exchange rate fees. The other fees are for receiving money into your account. The one receiving the money on a business payment pays the fees. On a personal money transfer i.e. a gift or a loan to a friend you have the option to choose who will pay the fees. The fees are starting at 3.4% + 0.35 cent flat fee and may be lower for higher volumes. Out of the 3.4% paypal has to pay the fees to the Automated Clearing House (ACH). This is not something Paypal is controlling. All bank transactions between banks, have to go through an ACH. Only about 15% of the 3.4% fee is revenue for Paypal. The rest is to pay fees of other banks, credit card issuers and the ACH. All other competitors like Amazon and Google Wallet, etc. have the same business model. So Paypal is no different than other online payment sytems. Without the fees they wouldnt make money, you pay for the service they provide.

https://www.paypal.com/uk/cgi-bin/webscr?cmd=_display-receiving-fees-outside (https://www.paypal.com/uk/cgi-bin/webscr?cmd=_display-receiving-fees-outside)

https://mm.jpmorgan.com/stp/t/c.do?i=6D588-517&u=a_p (https://mm.jpmorgan.com/stp/t/c.do?i=6D588-517&u=a_p)*d_301789.pdf*h_2kkrp0e4
http://thebankwatch.com/2007/04/11/celebrating-paypals-centenary-paypal-business-model-analysis/ (http://thebankwatch.com/2007/04/11/celebrating-paypals-centenary-paypal-business-model-analysis/)

Older articles, so the numbers have changed by now, but it illustrates the picture



Title: Re: Paypal exchange rates
Post by: nicku on September 23, 2012, 03:52
in my case :)

Paypal - 1$ = 3.50 RON
Market 1$= 3.45 RON

 ;D

This is possible only at one big commercial bank. they take in consideration the Paypal exchange rate not the market or national bank exchange rate.
Title: Re: Paypal exchange rates
Post by: qwerty on September 23, 2012, 04:06
last time I checked paypal offered very competitive rates on USD to ASD.

Having said that,  competitive compared to the blood * leech banks.

Only way to win ! Buy bank shares with your microstock earnings.
Title: Re: Paypal exchange rates
Post by: aeonf on September 23, 2012, 06:20
In my case the bank offers better exchange rates then Paypal by FAR.