PayPal and Currency Conversion Fees
Recently, I made a purchase on Ebay.com which many of you already know uses PayPal as its payment processor. PayPal is great when buying stuff on Ebay as it usually gives you some sort of guarantee in the event that your item arrives damaged, not as described or just not delivered at all. PayPal usually takes the buyers side in almost all cases. Now, some of you may know this while some of you may not but whether you pay via PayPal directly from Ebay or attach and use a credit card for the transaction, the payment processor will still remain the same. That’s right, PayPal handles all the transactions for Ebay.
An interesting fact I found recently about PayPal is that it charges 2.5% for currency conversions plus it’s conversion rate ranges from $4.00 to $7.00 higher than the banks. With that said many of you who have not already updated the currency settings in PayPal would want to do so before your next purchase.
Updating these settings can be a little tricky as Paypal is obviously making significant revenue from conversions. Below is a short guide as to how you can stop PayPal from overcharging you on your next Purchase. Also, the idea of charging extra for certain currencies as well as conversions is not limited to PayPal and or Ebay so be sure to look at the payment options closely.