Paypal foreign exchange fee

Phil_the_fiddler

Hi anyone who's reading, have I been completely dull (probably yes) have recently opened an Argos Mastercard (I think under the wing of Barclaycard) possibly from a past Mart-Lew recommendation due to Argos award points. Had intended to use it to purchase on-line items, mainly via paypal. Well just had my first statement in and horror it shows a foreign exchange fee for every paypal purchase, to my knowledge I have never been charged any currency charge before (unless the screen price was in a foreign currency). I have been told by Argos mastercard that as paypal payments are via Luxembourg that's what to expect, is this right? Think I will be cutting up my argos mastercard!

Freds_Friend

Put Freds Friend into the search for Forums. You are not the only one.

lisyloo

I use Egg and I don't get charged any extra so it must be specific to this card.

olly300

lisyloo wrote: »

I use Egg and I don't get charged any extra so it must be specific to this card.

It is card specific.

For example all AMEX cards are charged in US Dollars and then converted into GDP even if they are issued in the UK. There as plenty of other cards are not. (I found out the hard way.)

zhatorna65

I've used my paypal account with MBNA and Smile cc's with no charges, ever.

First I've heard of the luxembourg thing - my transactions happen in pounds that then get converted to a balance in US dollars.

footboy

Just noticed a Foreign Exchange Fee charge on my Argos bill.

Argos told me that it is usual for credit cards to do this.

Even though the transaction was in sterling and I diligently converted my paypal account to sterling following the first £0.03 (I bought something for a pound to test and found out my paypal was in USD and thought that was the problem).

So, had a couple of good transactions (still playing safe) then bumpf, one says "Paypal Blah Blah, Lux" and Argos apply the Foreign Exchange Fee (3% of transaction value). WHAT EXCHANGE? Isn't the exchange rate for the same currency 1:1?

No it's because Paypal is in Luxembourg.... Que????? Sterling is sterling is sterling (unless you use Argos Mastercard)

Martin is this right? If promoting use of the Argos Mastercard can you put a note on the page to this effect to warn others of sting when using Paypal?

Cheers
Steve

hippey

olly300 wrote: »

It is card specific.

For example all AMEX cards are charged in US Dollars and then converted into GDP even if they are issued in the UK. There as plenty of other cards are not. (I found out the hard way.)

Amex transactions for paypal are now processed in Singapore so do not get double converted anymore.

hippey

footboy wrote: »

Just noticed a Foreign Exchange Fee charge on my Argos bill.

Argos told me that it is usual for credit cards to do this.

Even though the transaction was in sterling and I diligently converted my paypal account to sterling following the first £0.03 (I bought something for a pound to test and found out my paypal was in USD and thought that was the problem).

So, had a couple of good transactions (still playing safe) then bumpf, one says "Paypal Blah Blah, Lux" and Argos apply the Foreign Exchange Fee (3% of transaction value). WHAT EXCHANGE? Isn't the exchange rate for the same currency 1:1?

No it's because Paypal is in Luxembourg.... Que????? Sterling is sterling is sterling (unless you use Argos Mastercard)

Martin is this right? If promoting use of the Argos Mastercard can you put a note on the page to this effect to warn others of sting when using Paypal?

Cheers
Steve

No this is not usual, ask Argos who is applying the fee, that will give you a clue. This could be a Foreign Processing Fee which some issuers charge for non-UK transactions in any currency (GBP or otherwise)
I would read you T&C's and check.

hippey

Sorry, just found this in the Argos card T&C's So it looks like you have signed to accept the charges:

2.7 If you use your card for non-sterling transactions we convert the transaction to sterling on the day it is added to your account at a wholesale exchange rate set by the payment scheme provider. This may not be the same as the exchange rate on the date of the transaction. We also charge a foreign exchange fee which is listed under Charges. This fee may also apply to sterling and non-sterling transactions online, where the website is hosted by a merchant based outside the UK.

Paypal is based in Luxemburg, so the fee is correct.

footboy

hippey wrote: »

Sorry, just found this in the Argos card T&C's So it looks like you have signed to accept the charges:

2.7 .... This fee may also apply to sterling and non-sterling transactions online, where the website is hosted by a merchant based outside the UK.

Paypal is based in Luxemburg, so the fee is correct.

Thanks for taking the due diligence to check those out for me!

Isn't the key word there merchant? I bought my item from a merchant based in London. Paypal weren't the merchant as such.... the merchant was in London.

Eric_Pisch

footboy wrote: »

Thanks for taking the due diligence to check those out for me!

Isn't the key word there merchant? I bought my item from a merchant based in London. Paypal weren't the merchant as such.... the merchant was in London.

the card company pay paypal not the merchant

however if paypal charge in sterling what currency conversion is there to justify the charge?