Paypal foreign exchange fee

hippey

That is very true, you would think as the transaction is processed in GBP then no fees should apply.
But there are interchange fees which are payable between the various institutions, some will pay them and pass them on, some don't. Paypal acts as the merchant in eBay cases so an international fees will be payable. It's a hard thing to grasp but it is always a case of reading the small print and being very careful about the headline offers no matter who recommends them.

The Amex issue caused some issues for years but this seems to have gone away for now

dtaylor84

I'm not disputing that. I wouldn't say it is very hard to grasp, either -- they can charge whatever fees are in their terms and conditions (subject to some nebulous definition of "fairness"). If they want to call it a "foreign currency exchange" fee, they can.

There is, however, no need for any currency conversion in this case, and calling it a "foreign transaction" fee would be more accurate...

tonyb007

Logged official complaint with Argos mastercard on monday night - told they'd call me to review/discuss it within 72 hours.

Result! Kind of...

Checked my credit card online tonight...exchange fee refunded! However, as yet no-one had contacted me from the complaints department.

Will be calling them to follow it up now to see why...and to see if it's going to happen again...

zannie_2

I am glad to read your post I thought it was just me. I have had my card for a long time and often used for paypal but in this month statement they have been charging me 40p on £13.70 and 15p on £4.98. I now realise that they charged on my last one too but because I had been abroad I didn't pick it up. I kept ringing them and theygave various excuses including that the goods must have been ordered from china (they were not) they also deny that it is unique to Argos Card but I don't get charged on any other cards. I know it is not a large amount but that really is'nt the point. Eventually someone at argos told me that it is because Paypal banks in luxembourg (confused- I am) but all transactions were in £ Sterling and I contacted the sellers who confirmed that they definately charged in sterling too.
I have closed my card today and I would warn people about this very dodgy practice. I asked them to raise a query with Paypal but they absolutely refused. I think now becasue they know that it is Argos Mastercard not Paypal. If all cards started it then I would never use paypal and go back to cheques. But I think it is only Argos Mastercard at the moment

jonesMUFCforever

dtaylor84 wrote: »

So? They could be on Mars, for all the difference it would make. The credit card company give paypal GBP. They are given GBP by the cardholder. There is no buying or selling of currency!

The last time I looked the currency of Luxembourg was not pound sterling - so they buy and sell sterling using (probably) Euros or dollars to settle.

tonyb007

Before I logged the complaint I called Paypal to ask about their bank being off-shore as Argos are saying...they basically rubbished that and said all the transaction was in pounds and no payments went off-shore so there's absolutely no reason why I should be being hit with an exchange fee.

No explanation or contact to say it'd not happen again, no apology or letter or anything though.

I've since also logged something with Paypal (because after speaking to Argos after the refund they said I should expect a fee everytime I use it for Paypal) and asked them why they haven't investigated Argos's dodgy practice - I'm waiting for a reply...

Tony

zannie_2

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 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.

I will give you that it is the terms and conditions (apparently) but never the less it is a new fee as they have done done it to me before. In my opinion they should have told me about the new practice so that I can make a decision whether to continue to use paypal on my argos card. I had already stopped selling on ebay as with the extra % fees it is not worth it. Looks like I will have to give up buying too if this becomes common practice . I have voted with my feet the argos card has been closed as of yesterday

M_Thomson

jonesMUFCforever wrote: »

The last time I looked the currency of Luxembourg was not pound sterling - so they buy and sell sterling using (probably) Euros or dollars to settle.

A site can operate in any country and bill customers in Outer Mongolian dinars if it so wishes. Take CD Wow. They are based in Hong Kong, but have several versions of their website for The UK, US, Ireland, France, Germany etc. All billed in local currency without any conversion charges to customers in each country. Yes, CD Wow may have to convert the proceeds from their sales in local currencies into Hong Kong Dollars, but they would work the cost of that into their prices.

tonyb007

Made a purchase on ebay last week...paid through Paypal - only forgot I hadn't changed my credit card registered with Paypal to my Capital One card...and surprisingly no exchange fee! So are they maybe just trying it on with random purchases and hoping people don't complain so they can just keep the cash?!? great money-making scheme if it is! wish I'd thought of it!

DocHants

Ive just called paypal and told them I have just registered my Amex with them, and asked whether purchases I make would be charged in dollars, they said now.. they are charged the same currency as the purchase you are making....

If I pay somehting in GBP, I will be charged £ and no conversion takes place...