PayPal cheats on exchange rates – hidden fee!!

Every time I make an online purchase priced in USD (I’m Canadian) PayPal pads the exchange rate by 2.5% – EVERY TIME. This likely applies to all non-USA PayPal users. One user in Thailand reported that PayPal increased his purchase cost by padding the exchange rate 14%!! (the true rate was 65 Baht per sterling Pound, but they credited him only 56 Baht)

So in addition to all their fees to the seller, PayPal DOES also charge the buyer despite claims to the contrary.

Submitted By:: Paul

Location-: Canada

Posted: February 20, 2012 at 6:57 pm


2 Responses to PayPal cheats on exchange rates – hidden fee!!

  1. Christian says:

    Oh my, I just got cheated too. Wish I had seen this site before using pay”pal”. And they didn’t only change the conversion rate a little bit. Incredible that they can get away with it and still be so succesful.

  2. Bedovlat says:

    The case is, they do explicitly state they are robbing you additional 3.5%+ on all conversions. You are kind of happy childishly when they say you pay 7 GBP to transfer 1400 GBP, but then they make you lose 60 EUR because of additional spread on the rate. And then there is no way back. You cannot link a British bank account to a paypal account based, say, in Germany. Every paypal account is for one country only! I have to manage several paypal accounts based on different countries in order to use them with all my bank accounts. Oh, no. Paypal does not suck. It makes you suck.

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