Which credit card to link to paypal for foreign currency transaction

Dustykitten

I am trying to work out if it makes a difference which credit card I link to my paypal account for foreign currency transactions.

I've been reading the user agreement and understand that they charge a 2.5% load fee for the transaction, does this mean that when applied to my credit card it will already by in £s so which card I use will make no difference?

grumbler

Have a look at the last posts in this recent thread:
Paypal paying well under the going rate for currency

reclusive46

The best way to avoid paypals DCC is to checkout as a guest (I.e not log in) or use an amex (Although the only forex free Amex is the Lloyds one).

Dustykitten

reclusive46 wrote: »

The best way to avoid paypals DCC is to checkout as a guest (I.e not log in) or use an amex (Although the only forex free Amex is the Lloyds one).

Ok you have totally confused me. I have been sent an invoice in another currency which I can see if I log into my accont. I don't have Amex so not an option. How do I checkout as a guest and where would the funds come from?

zerog

reclusive46 wrote: »

The best way to avoid paypals DCC is to checkout as a guest (I.e not log in) or use an amex (Although the only forex free Amex is the Lloyds one).

I don't think so. Paypal will just charge your card in GBP as a UK merchant.

This is different from a foreign merchant which can only charge Amexes in the merchant's own currency

reclusive46

Dustykitten wrote: »

Ok you have totally confused me. I have been sent an invoice in another currency which I can see if I log into my accont. I don't have Amex so not an option. How do I checkout as a guest and where would the funds come from?

Ah. If they sent it to the email address you have an account with them you probably won't be able to do it as it'll link with your paypal account.

If you buy something through paypal or get sent an email invoice to an email address you don't have a paypal account with it'll send you to a link which will let you log in or check out as a guest. When you check out as a guest you can simple type in your card information and proceed. Usually you will get charged in the actual currency that way (rather than PayPal converting it).

thenudeone

When buying something off ebay in a foreign currency, there is an option (although not very clear) to choose whether to let paypal convert it to sterling or whether to charge it to your CC in foreign currency.

If you have a CC or debit card which doesn't charge a foreign fee (eg: Nationwide and some others) you should always choose that option.

Otherwise you have to try to work out whether paypal's conversion or your CC's conversion + processing fee is best, which is difficult because you don't know exactly what rate your CC will use. At least allowing paypal to convert means you know exactly what the £ cost is.

Dustykitten

Many thanks for your help. I've paid using Clarity Card and gone for the CC conversion. I have noted how much it would have been paying by paypal so it will be interesting when it appears on my statement as to what the difference is.

zerog

Dustykitten wrote: »

Many thanks for your help. I've paid using Clarity Card and gone for the CC conversion. I have noted how much it would have been paying by paypal so it will be interesting when it appears on my statement as to what the difference is.

OK, that lets me know that this option still works at least. Your Halifax clarity should charge you around 3.5% less than what paypal would have.

Dustykitten

zerog wrote: »

OK, that lets me know that this option still works at least. Your Halifax clarity should charge you around 3.5% less than what paypal would have.

Difference seems to be about 2% (1.96%) still better.

grumbler

How do you know if you didn't pay with DCC to compare? Did Paypal show the estimated amount in £ for DCC?