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Posted 31 August 2013
Avoid the Great Paypal Exchange Rate Rip Off
Paying for anything with Paypal in anything but your own currency will incur a Paypal exchange rate fee through their poor exchange rate. This isn't shown at checkout anywhere as Paypal just do the conversion and take a cut - about 3% - from any transaction payment conversion they do. Visa's exchange rate fee is 0- likely your bank's thus is BUT DO CHECK!
The trick is to make Paypal bill you in the original sale's currency and let your bank handle the conversion at market rate. To do this, go to paypal.com/uk/…hub and click 'Conversion Options' next to your funding source. On the next page, change the selected option to 'Bill me in the currency listed on the seller's invoice' - don't worry about Paypal's scaremongering text about this, your bank/credit card likely handles this at market rates and doesn't add a further few percent for profit. Then just make your purchases knowing you'll be getting billed the exact market rate and not lining Paypal's pockets. Do make sure to check your bank's rate if any above the daily date.
Found via lifehacker.com/595…ion
Visa exchange rate: "Currencies fluctuate every day. The rate shown applies to transactions processed by Visa Europe on 31 August 2013 with a currency conversion fee of 0.00%."
***Do check your bank's fees*** (and post here so OP can be updated)
Visa Exchange Rate = zero additional fee
Banks:
HSBC
2.99%
Nationwide
Credit cards = 0%
Debit cards = 2%
Halifax
Credit cards: 2.95% transaction fee
Debit cards: 2.75% transaction fee
The trick is to make Paypal bill you in the original sale's currency and let your bank handle the conversion at market rate. To do this, go to paypal.com/uk/…hub and click 'Conversion Options' next to your funding source. On the next page, change the selected option to 'Bill me in the currency listed on the seller's invoice' - don't worry about Paypal's scaremongering text about this, your bank/credit card likely handles this at market rates and doesn't add a further few percent for profit. Then just make your purchases knowing you'll be getting billed the exact market rate and not lining Paypal's pockets. Do make sure to check your bank's rate if any above the daily date.
Found via lifehacker.com/595…ion
Visa exchange rate: "Currencies fluctuate every day. The rate shown applies to transactions processed by Visa Europe on 31 August 2013 with a currency conversion fee of 0.00%."
***Do check your bank's fees*** (and post here so OP can be updated)
Visa Exchange Rate = zero additional fee
Banks:
HSBC
2.99%
Nationwide
Credit cards = 0%
Debit cards = 2%
Halifax
Credit cards: 2.95% transaction fee
Debit cards: 2.75% transaction fee
Community Updates
22 Comments
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Most banks I've checked do it at market rate. My Nationwide credit card does. Paypal's exchange rates are usually much worse than your banks, but DO check your own account. Once set, if you're fee-free, you don't get nickel and dimed for any future Paypal purchases (eBay included I think.)
Not so with HSBC, from their web site;
Exchange Rate Adjustment
2.99% added to the Visa Exchange Rate
I assumed HSBC would, they're rubbish at everything for high street banking imo
Paypal actually works out cheaper. Surprisingly.
Current
That makes zero sense. You should investigate this - nothing should happen to your account until you next make a purchase.
I don't mean the simple act of changing it. I mean then continuing to purchase in the $ amount being converted by bank instead of paypal.
(edited)
Annoying. I've looked on the Halifax page and can't find any details - if you can link to their info I'll update the banks in the op
http://www.halifax.co.uk/travel/help-guidance/using-debit-credit-cards-abroad/
I'm not saying the above is absolute even though lol it is when based on the info presented above . What I do know is that when I've changed that option in paypal in the past I've incurred a charge.
(edited)
Thanks! Wow, I never realised how terrible Halifax were!