Paypal paying well under the going rate for currency

hubb

It annoys me that after the fee Paypal take out of a payement received, the currency is always much lower than the rate of the XE website which gives all curent rates.

For instance, I have a payment of $2,236 which converts to Uk pounds as £1,355

Paypal are giving the rate of £1322 which is short a massive £35. Why such a huge difference. It's outrageous considering we already pay a huge fee.

eskbanker

hubb wrote: »

Why such a huge difference.

Why would you expect PayPal to use the rate on the XE website or even something close to it?

hubb

because they are converting currency. the current rate, not a made up one.

zerog

hubb wrote: »

because they are converting currency. the current rate, not a made up one.

??? so the Post office should also use the midmarket rate then?

Paypal are selling you a currency and can choose whatever rate they like. If you don't like the rate then buy your currency elsewhere (which may practically mean you need to use a merchant who takes something other than paypal)

agrinnall

hubb wrote: »

because they are converting currency. the current rate, not a made up one.

All exchange rates are made up by somebody, there's no exchange rate fairy magically creating a standard rate. Just take a look at the rates offered by different banks. If you don't like the Paypal rate, don't use them.

hubb

But surely the world standard rate is universally the same? why do they tell us the current rates on the news for instance ?

BillJones

hubb wrote: »

But surely the world standard rate is universally the same? why do they tell us the current rates on the news for instance ?

The news will quote a mid-market rate, from one service, but in general you get a different price from each dealer you ask, and the price at which you can buy is always higher than the price at which you can sell, the difference represents the dealer's profit.

For very large trades (hundreds of millions to billions) the difference between the two prices is tiny, but for small tickets such as yours it can easily be a few percent, as yours was.

hubb

But £35 difference is taking the mickey.

Ebany

http://travelmoney.moneysavingexpert.com/buy-back/u.s%20dollars/2236#results

Don't go to NatWest then, they will only give you £1242 for it.

Hominu

hubb wrote: »

But £35 difference is taking the mickey.

If you ask them nicely they'll change the funds for you at the current market rate and then charge you 2.5% commission instead.

BillJones

hubb wrote: »

But £35 difference is taking the mickey.

What two-way price is fair for such a small retail transaction as this, then? It sounds pretty reasonable to me.