American express and paypal rip off!

beckyuk

II have had an AMERCIAN EXPRESS card via MBNA since October, i have bought a lot of items and paid via paypal. They convert the amount to dollars and then back to UK, with no change to the amount. When I looked at my MBNA statement, on each transaction, more was taken from me amounting to over £140.00. I telephoned MBNA, got passed to 6 different people, who knew nothing about the situation and blamed paypal. I telephoned paypal who confirmed that it is a policy of Amercian Express, and they must convert to dollars even though it is a UK transaction. So because of this, MBNA are charging an extra percentage on top, which I find appauling. I was not notified of this by MBNA, and they just went round in cirlces giving me no answers. My lawyers have told me to put it in writing to MBNA which I have done today. I cannot see a valid reason why amercian express wish paypal to convert the amounts firstly, and MBNA have no right to take money from me when the transaction was not an Amercian transaction in the first place. Amex must be maiking millions by doing this, it is simply theft.

JohalaReewi

Unfortunately, paypal charge all transactions to Amex in USD so UK Amex holders get hit for currency exchange fees.

See...

http://forums.moneysavingexpert.com/showthread.html?t=335629

BrunoM

It really is a Paypal thing, not an AmEx one as such. And bloody stupid it is too.

beckyuk

Hi, thanks for the reply. i really dont think its paypal. When they convert the money when i pay for something, the amount does not change. In other words, it shows the amount in sterling, then dollars, then sterling again, and it is the correct amount. I had no idea more money had been taken until i saw my card statement. Paypal have been told by amex they must convert to dollars, but the credit card then has a policy that if anything comes through in dollars they add a percentage to it!!! I really could not believe they can get away with this. There must be something we can do.

tom188

Paypal charge all Amex transactions in dollars.
Dollar transactions attract exchange rate fees on almost all credit cards.

peawack

Paypal ARE rip-off merchants. They charge commission on commission on commission and then Vat, then commision on the Vat !

M_Thomson

beckyuk wrote:

Hi, thanks for the reply. i really dont think its paypal. When they convert the money when i pay for something, the amount does not change. In other words, it shows the amount in sterling, then dollars, then sterling again, and it is the correct amount. I had no idea more money had been taken until i saw my card statement. Paypal have been told by amex they must convert to dollars, but the credit card then has a policy that if anything comes through in dollars they add a percentage to it!!! I really could not believe they can get away with this. There must be something we can do.

beckyuk wrote:

Hi, thanks for the reply. i really dont think its paypal.

Yes it is, they have a notice when you register Amex cards on paypal which clearly states that Amex cards are charged in US Dollars.

beckyuk wrote:

There must be something we can do.

First of all, you can't really complain. It is displayed on Paypal's website, second of all why don't you get a Visa or Mastercard as well? Problem will be solved then.

moni72

beckyuk wrote:

Hi, thanks for the reply. i really dont think its paypal. When they convert the money when i pay for something, the amount does not change. In other words, it shows the amount in sterling, then dollars, then sterling again, and it is the correct amount. I had no idea more money had been taken until i saw my card statement. Paypal have been told by amex they must convert to dollars, but the credit card then has a policy that if anything comes through in dollars they add a percentage to it!!! I really could not believe they can get away with this. There must be something we can do.

Hi Becky, I agree with the other posters it is actually a Paypal thing. I believe the reason they show your transaction in sterling again is to show that they have in fact charged you the same in dollars BUT it still means that Paypal charge your credit card in dollars and then MBNA charge for the currency conversion. The route of the problem is Paypal charging AMEX card-holders in dollars. I'm not sure who's to blame for Paypal's policy ie AMEX or Paypal but it has nothing to do with your UK AMEX/MBNA card who are just charging according to their policy for all foreign money transactions (all cards do it except Nationwide who are brill for foreign transactions - no charges).

I know it stinks but it does say on Paypal's website that they charge all AMEX transactions in dollars and that's why I've never used AMEX myself (although I used to use it everywhere that took it for the good cashback rates they used to have). I always had to plump for a Visa or Mastercard as I knew AMEX would then charge me for converting back from dollars to sterling.

I'm sorry to say you might not be able to do anything about it. :mad:

dc

I dont think you can play a blame game here. Just learn from the situation and use a UK credit card instead of an Amex branded card.
It is a currency/country thing, Paypal and Amex are both large American companies so it is natural for them to trade with each other in dollars. As you pay in pounds then you will be charged the 2.75% currency exchange by Amex not Paypal. I know it is a shock when you first find out, but you have to find a way round in true MSE fashion.;)

wombler

Thanks for all the contributors to this thread. I was just about to pay for something on ebay / paypal using my Amex (i'm getting 3% on my Platinum right now), but I spotted the disclaimer, which is at the top but in smaller font than anything else:

American Express cards will be charged in USD. Paying with American Express will result in currency conversion fees if your card is not denominated in USD and/or if you send a non-USD payment.

Anyway, i'm glad i decided to run a search before proceeding. I do have one query though which someone might be able to help with - I occasionally buy things from the States - does that mean if I use my Amex to buy things via Paypal which are charged in US Dollars i'll avoid the conversion fees? Is using Amex then a sensible thing to do in that case (or at least no worse than using a Visa / Mastercard)?

JohalaReewi

wombler wrote:

I occasionally buy things from the States - does that mean if I use my Amex to buy things via Paypal which are charged in US Dollars i'll avoid the conversion fees? Is using Amex then a sensible thing to do in that case (or at least no worse than using a Visa / Mastercard)?

Well you will avoid the conversion to USD by Paypal but will still get hit by the USD to GBP conversion by Amex. Best to get a credit card that has 0% commission on foreign currency transactions (like Nationwide and Post Office) and use that for purchases from the USA (and other foreign countries). With one of these, you get Paypal to bill you in the foreign currency (not GBP) to get the best possible exchange rate.