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Beware - Currency fees on Paypal purchases!

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wwgraham
wwgraham Posts: 1 Newbie
in Credit cards
Hi, apologies if this is old news but I did a search on Paypal on this forum and found nothing.

I like many others took Martin's guidance and moved from a standard VISA card to AMEX Platinum cashback to enjoy the benefits but was horrified to discover when I received my statement today that I've been charged currency conversion fees when using AMEX with paypal. They've converted UK £ into US $ and then back to UK £ and charged me in one instance £57.76 more for an eBuyer transaction. The only reason I used paypal on eBuyer was because they didn't take AMEX!. Nowhere was I forewarned of additional fees either by AMEX or Paypal. I've called both AMEX and Paypal and been told this is standard practice as AMEX is considered a US card, but I have a UK AMEX account, a UK Paypal account and buying stuff in the UK in ££££'s! It's crazy and surely it can't be legal? This has to be one of the biggest cons around!

I'm not going to take this lying down and so does anyone know what the best course of action may be? Trading standards perhaps?

Thanks in advance

Will

Comments

  • JohalaReewi
    JohalaReewi Posts: 2,614 Forumite
    Unfortunately, this is what Paypal do :(:( Paypal do say so in thier T&Cs so unfortunately, you don't really have a case. The best course of action is to use Visa or Mastercard with Paypal for sterling purchases, and a Nationwide Credit Card for foreign currency purchases (but make sure paypal charge your card in the foreign currency and not sterling).

    Scroll down to the bottom of section 1.7
    https://www.paypal.com/uk/cgi-bin/webscr?cmd=p/gen/ua/policy_payments-outside
  • M_Thomson
    M_Thomson Posts: 1,596 Forumite
    Part of the Furniture
    wwgraham wrote:
    Hi, apologies if this is old news but I did a search on Paypal on this forum and found nothing.

    I like many others took Martin's guidance and moved from a standard VISA card to AMEX Platinum cashback to enjoy the benefits but was horrified to discover when I received my statement today that I've been charged currency conversion fees when using AMEX with paypal. They've converted UK £ into US $ and then back to UK £ and charged me in one instance £57.76 more for an eBuyer transaction. The only reason I used paypal on eBuyer was because they didn't take AMEX!. Nowhere was I forewarned of additional fees either by AMEX or Paypal. I've called both AMEX and Paypal and been told this is standard practice as AMEX is considered a US card, but I have a UK AMEX account, a UK Paypal account and buying stuff in the UK in ££££'s! It's crazy and surely it can't be legal? This has to be one of the biggest cons around!

    I'm not going to take this lying down and so does anyone know what the best course of action may be? Trading standards perhaps?

    Thanks in advance

    Will

    I also had one of my Amex cards registered, and Paypal Do tell you that they charge Amex in US dollars. It is there when you register the card, and also if you attempt to use the card to make a purchase. You must have just missed it.
  • beckyuk
    beckyuk Posts: 8 Forumite
    Part of the Furniture First Post Combo Breaker
    Hi. The same has happened to me, I lost 145 pounds. Did you do anything about it? I think it is simply theft. I found that it was not so much paypal, when they did the comversion it did not show that anymore was taken, but when i looked at the card statment, that is where the amount had risen. when i questioned them, they said they have to add a percentage on if the transaction is in dollars! so paypal blames MBNA, who i have amercian express with, and mbna blame paypal!! I think something should be done. Amercian express are making millions out of this. So basically paypal have to convert to dollars through the policy they have with amex, why i will never know, and the credit card then add a percentage on because it has been converted to dollars!!! I will never use an amercian express card again. MBNA were completely puzzled to begin with, they then rang paypal, and were told the above. So amex is making sure it gets its money for nothing. theft!
  • neil40
    neil40 Posts: 753 Forumite
    I nearly fell for this one too.I was about to pay with my Amex card, but noticed that it was converted to US dollars.I knew that as it was a foreign currency, they would charge a conversion fee.I cancelled that and paid with my visa instead.It is not fair to do this on the part of Paypal/Amex and it should be clearly stated that there will be Amex fees charged before you proceed..............Neil
  • jamalfatty
    jamalfatty Posts: 960 Forumite
    This is due to a long running dispute between AMEX and PayPal and has been going on years with no sign of being resolved.

    http://www.thisismoney.co.uk/money-savers/article.html?in_article_id=406961&in_page_id=5

    To the OP, there is no point trying to take this further, you wont get anywhere and will be wasting your time, I tried same myself, just consider it a lesson learnt
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