Is Paypal a ripoff?

::::BASSIST:::: · #1 05-12-2008, 08:03 PM

So according to xe.com (currency exchange site) the Canadian and US dollar are virtually at par. Yet paypal charged me $20 more. I bought an amp for $630USD and it cost me $650CDN.

Is their exchange rate that bad or maybe some 'extra' fee is involved?

JonathanD · #2 05-12-2008, 08:08 PM

This is pretty much even.
$20 is ~$.04 on the dollar more.

iamlowsound · #3 05-12-2008, 08:08 PM

Quote:

Originally Posted by ::::BASSIST::::

So according to xe.com (currency exchange site) the Canadian and US dollar are virtually at par. Yet paypal charged me $20 more. I bought an amp for $630USD and it cost me $650CDN.

Is their exchange rate that bad or maybe some 'extra' fee is involved?

What was the exchange rate that paypal told you? They are usually a few days behind. According to xe.com, you should have paid an extra $6.60 or so. If the exchange rate was $.96 Cdn (which it was a few days ago), the extra $20 makes sense. Paypal has done that to me in the past as well.

lowsound

Trevorus · #4 05-12-2008, 08:09 PM

That's kinda what you pay for convenience, though..

cheesemonkey · #5 05-12-2008, 08:09 PM

paypal just doesn't like canadians?

FL Knifemaker · #6 05-12-2008, 08:14 PM

Quote:

Originally Posted by cheesemonkey

paypal just doesn't like canadians?

Or gun enthusiasts, hunters or knife collectors

Basically their politics and BS rules SUCK

Fontaine · #7 05-12-2008, 08:17 PM

ouch.

::::BASSIST:::: · #8 05-12-2008, 08:20 PM

Yeah, at the time it was .96 cdn. $20 seems like alot but I guess $600 is a fairly large sum. Bummer.

Its not like I can change anything now. Just trying to figure out if there is something cheaper for future reference. Money order I guess.

Funny thing is my bank says the opposite. I have $270USD sitting in my account I want to transfer into Canadian funds, but my bank says I'll only get $265Cdn. You'd think I'd get more for USD. I know its not much, but its the principle of it.

fdeck · #9 05-12-2008, 10:30 PM

My interpretation of the PayPal fee schedule is that they charge a 2.5% fee for changing currency. I suspect that very few banks offer currency exchange or foreign-currency money orders without a fee. In fact, my guess is that the fees that can be charged are probably rather tightly regulated.

Next time, get a cashier's check from the central bank of Nigeria.

seanm · #10 05-12-2008, 11:13 PM

You will never get the exchange rate. That rate is for people moving serious amounts of money such as banks and financial institutions.

For example, according to xe.com the CDN dollar is $0.993US, but the Bank of Montreal would charge you $1.13 for a US dollar. And you want to bet the BoM is keeping up to the minute. When I used my Mastercard in the UK, every debit was at a slightly different rate.

MJ5150 · #11 05-12-2008, 11:20 PM

Trading currency back and forth just gets confusing to me. I'll just keep on only accepting USD, no matter how low the value goes.

-Mike

Rattman · #12 05-12-2008, 11:28 PM

I completely avoid PayPal... have never used them yet. Always pay for my eBay auctions with money orders, or personal check. Haven't been refused by anyone so far.

Skeletomania · #13 05-12-2008, 11:42 PM

Quote:

Originally Posted by seanm

You will never get the exchange rate. That rate is for people moving serious amounts of money such as banks and financial institutions.

For example, according to xe.com the CDN dollar is $0.993US, but the Bank of Montreal would charge you $1.13 for a US dollar. And you want to bet the BoM is keeping up to the minute. When I used my Mastercard in the UK, every debit was at a slightly different rate.

If you do a lot of foreign business(big or small,) you'll be using a lot of US dollars as standard currency. After the exchange rate, a dollar or two doesn't seems a lot, but it adds up after a while.

::::BASSIST:::: · #14 05-12-2008, 11:50 PM

Quote:

Originally Posted by seanm

You will never get the exchange rate. That rate is for people moving serious amounts of money such as banks and financial institutions.

For example, according to xe.com the CDN dollar is $0.993US, but the Bank of Montreal would charge you $1.13 for a US dollar. And you want to bet the BoM is keeping up to the minute. When I used my Mastercard in the UK, every debit was at a slightly different rate.

That's fraudulent. I hate banks.

i_got_a_mohawk · #15 05-13-2008, 03:46 AM

Quote:

Originally Posted by ::::BASSIST::::

That's fraudulent. I hate banks.

No it isn't.

If you think paypal is a rip off, don't go near a real bank as they are generally worse. Everyone beats down on paypal, but its a very good service (generally). (and that's from well over 500 transactions over paypal)

peterbright · #16 05-13-2008, 05:03 AM

Very convenient for me.

::::BASSIST:::: · #17 05-13-2008, 12:27 PM

Yeah, you pay for the convenience I guess. I am about to sell an amp in US funds. I'm curious to see if they give me the same exchange rate when I convert the US funds back to Canadian. 2.9% Fees notwithstanding.