PayPal is disgusting!!

[malhotraraul]

I brought something from ebay.com in August 2013 last year, the seller failed to sent the item or maybe got lost in transit (twice) then later he even failed to refund me the money, after to & fro of emails for so long time, day before yesterday (Saturday 11.01.2014) I called paypal to raise a dispute & got to know that he dispute has to be raised within 45 days, later just explaining that this was my first time & wasnt aware of this & seller took all the time in the world because he was aware of this (maybe he didnt wanna return the money) it was just a matter of 3.5 usd, hence paypal approved my dispute & refunded my 3.5 usd back into my account, paypal ki jai ho.

 

[Party Monger]

Yeah, exactly, and ultimately two different things affect the consumer, as two different things are merged as one! I don't know if you're getting the point.

Thanks for entertaining, once again. Wish I had the skill of yours, about every possible subject, on earth or outside.

At least someone sees the point, thank you.
Yes, the other way is Wire transfer. Bank to bank wire transfer is the easiest mode of transaction I've ever used. But obviously no security for the buyer, so I don't know how many people will agree to do a wire with you, unless you are a reputable and established seller already.

That's not a problem with second time clients. How do you transfer money internationally using bank's wire transfer?

 

[ithehappy]

So second time clients don't have to pay for the conversion rates or what? Please tell me cause I might have to use again...
About Wire, just ask anyone of your bank to do a Wire for the other bank account, you will just need to provide the details, like account no, IBAN etc, it takes less than 24 hours for the money to be actually credited in the other partie's account.
http://www.icicibank.com/corporate/globaltradeservice/remittances.html

http://www.icicibank.com/corporate/globaltradeservice/wiretransfer-localbank-usd.html

 

[Party Monger]

So second time clients don't have to pay for the conversion rates or what? Please tell me cause I might have to use again...
About Wire, just ask anyone of your bank to do a Wire for the other bank account, you will just need to provide the details, like account no, IBAN etc, it takes less than 24 hours for the money to be actually credited in the other partie's account.
http://www.icicibank.com/corporate/globaltradeservice/remittances.html

http://www.icicibank.com/corporate/globaltradeservice/wiretransfer-localbank-usd.html

I was talking about the security part. Whats IBAN, any other extra formalities? Will check the links in sometime. Thanks.

 

[rdst_1]

So second time clients don't have to pay for the conversion rates or what? Please tell me cause I might have to use again...
About Wire, just ask anyone of your bank to do a Wire for the other bank account, you will just need to provide the details, like account no, IBAN etc, it takes less than 24 hours for the money to be actually credited in the other partie's account.
http://www.icicibank.com/corporate/globaltradeservice/remittances.html

http://www.icicibank.com/corporate/globaltradeservice/wiretransfer-localbank-usd.html

Yes, but the point he is trying to make is that even the bank will charge a fees which usually is 3.5% plus service tax which in turn will equal what you were charged as conversion rate.

I know that you know what the charges are all about but are a bit disgruntled about them

1) 4.4% is charged by PayPal as service charge for providing a payment gateway ( just like what is charged by other gateways like online credit card/debit card payment gateways charge the sellers) and buyer protection.

2) Second charges are what every company/bank that deal in currency exchange charge.

And as for your question, you will be charged both of the above mentioned charges every time you receive a payment via PayPal. Yes it is not a perfect way but it is very easy way for both the buyer and seller because banks make you fill out many forms if you are sending payment. Don't know much about receiving, but I guess then the person who is sending payment will need to do the same at his end. It is the convenience of able to send and receive payment while sitting on your computer that you are paying for.

 

[ithehappy]

Yes, but the point he is trying to make is that even the bank will charge a fees which usually is 3.5% plus service tax which in turn will equal what you were charged as conversion rate.

Actually this is not true. Bank does charge a fee, for conversation rate, I haven't done a wire in last six months, but last time I did and all the ones previously, I quite clearly remember that last time, USD to INR was 63.5, and they made it 65, and that's it, no extra charge at all other than that. So it's around 3.5% or maybe less, need to check the old statement for precise figure, which is half or less than half of what PayPal is taking.

@Party Monger: IBAN is Intentional Bank Account Number, everything is mentioned in those links.

 

[rdst_1]

Actually this is not true. Bank does charge a fee, for conversation rate, I haven't done a wire in last six months, but last time I did and all the ones previously, I quite clearly remember that last time, USD to INR was 63.5, and they made it 65, and that's it, no extra charge at all other than that. So it's around 3.5% or maybe less, need to check the old statement for precise figure, which is half or less than half of what PayPal is taking.

@Party Monger: IBAN is Intentional Bank Account Number, everything is mentioned in those links.

Sorry. 3.5% is usually what you get charged when sending payment via credit card. The point is that no one is gonna do it for free. PayPal's charges might be on the higher side but then the convenience is also there plus they have built a brand name and are reaping the rewards for that.

Edit - Also like you said above the bank also charged some amount (63.5 to 65). By that calculation the difference is not much (61.9 to 59.7).
Also the banks/PayPal don't calculate on the exchange rate which you see on the sites. First they calculate the rate on which they are going to charge their 2.5/3.5%. Thus calculation is specific to each bank. Some may decide on the mean of the highest and lowest values of the day. Others might use their own formulas.
So say even if the rate was 61.9 when you received the amount, PayPal's rate on which they calculated might have been 61.5. Like everyone said, when sending payment you will be charged at around Rs. 2 more per dollar and similarly paid around Rs. 2 less per dollar.

When sending payments I always use my bank's conversion rate instead of PayPal because my credit card only charges 2% as conversion charges instead of the 3.75% that is the industry norm.

 

[ithehappy]

Yeah, no one 'should' do it for free, on the same path no one should take unnecessary charges either.
Anyway, I'll always try to avoid them, as long as the buyer agrees. I see what brand name does, pros/cons everything of it.