PayPal is disgusting!!

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ithehappy

ithehappy

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Guys plenty of you know but some might not, PayPal takes 4.4% (+30 cents, lol) charge while you are receiving money, I mean 4.4% from the total amount, that's okay. But today they transferred ~1000 USD to my bank account (auto withdrawn), and usually I thought as per today's rate it should be 61900, but I was surprised and also shocked to see that the amount was 59350 :O
Then I checked the transaction details, they transferred at a rate of 59.7, while rate for past 48 hours is 61.9! I mean okay, you are charging some percentage from the total amount, that's totally alright, but cutting away from the actual conversion rate too, I mean what the hell!!!
I hope this is not some rule made by R.B.I. If they did, f--k them, if they didn't f--k PP. Those percentages, and all sounds very small, but in reality it's more or less decent amount of money, besides I don't see a point!!! That's the main thing...
 
You should have placed a manual withdrawal request when the exchange rate was 61.9 INR / USD. It keeps on changing, so whatever was the exchange rate when the balance was auto-withdrawn will be applied to the entire amount. Bad luck!
 
Paypal has its own exchange rate which they display in their website (nothing to do with RBI). yeah it sucks but nothing we can do :(


_
 
Oh yea, they have their own exchange rate as well. Forgot to mention that. PayPal has become a monopoly, no doubt about that.
 
Actually the reverse conversion from $ to Rupees is proper.

Like when u buy something in $, you pay 1-2 Rupees per $ extra, same way when u convert from $ to Rupees the value of the rupee is 1-2 Rupees less per $.

Hope I cleared your doubt.
PayPal is not at fault here.
PayPal sends $ to your bank, your bank does the conversion.

For example, I added a new card to paypal, 1$ was charged twice for verification and was never refunded, I contacted paypal and they gave me a 3$ credit adjustment from their side, because they knew that if they send 2$,after conversion I won't get back what I was charged.

So 3$ eventually came up to be more than what was deducted, but then atleast they refunded the entire amount.
 
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I take it you have never bought and sold dollars before Paypal? No money exchanges give you the actual rate, you always buy higher and sell lower - you meaning you, the individual. The difference is service cost and everyone charges it. To the tune of about 3-4%.
 
Like cranky said, this is normal. The 4% they charged was PayPal fees for providing a service where you can receive money. When that money was transferred to your account, you were selling $ to your bank so they will always pay lesser than the rate for the day as that is how they earn profit.
When sending payment, PayPal offers to either use PayPal's conversion rate or the bank's. I don't know if that is the same when receiving payments.
 
Nothing wrong here. As everyone mentioned, all money ex changers have a commission amount on the exchange rate. I actually find Paypal's rates reasonably competitive. Plus nothing beats the convenience of instant transfer and technically when you deal with PP, you are not doing a forex transaction - you are paying paypal in rupees.
 
cranky said:
I take it you have never bought and sold dollars before Paypal? No money exchanges give you the actual rate, you always buy higher and sell lower - you meaning you, the individual. The difference is service cost and everyone charges it. To the tune of about 3-4%.
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I bought countless items through PayPal, but after payment never really checked my bank's statement details. Now I just checked, and yes, for buying they take more than the actual conversion rate too. Hmm.
Still, I think business should be done limiting that 4.4% charge. I don't really care who's making the profit here, bank or whoever, but a total of 4.4% plus 3% on the total amount has been cut, that makes a total of 7.5%, I'm sorry if I had done business right in past 4 years, by no means that's reasonable.
 
You are comparing two different things. One is the service charge on transactions; the other is the fees levied during currency conversion.
 
Overall they take around 8-10% of your payment. Same thing happened with me. Also taking ages to deposit it in my account -_-
Im looking for options too. Any suggestions? Direct bank transfer from foreign bank is possible?
 
blkrb0t said:
You are comparing two different things. One is the service charge on transactions; the other is the fees levied during currency conversion.
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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.
avi said:
ha ha, lol at this thread.
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Thanks for entertaining, once again. Wish I had the skill of yours, about every possible subject, on earth or outside.
Party Monger said:
Overall they take around 8-10% of your payment. Same thing happened with me. Also taking ages to deposit it in my account -_-
Im looking for options too. Any suggestions? Direct bank transfer from foreign bank is possible?
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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.
 
4.4% IS Transaction fees where as they charge an additional 2.5% fee to convert $ into INR . INDIAN banks don't charge any fee. I hope this makes things clear . Paypal fee's are absurd but you don't really have any alternative here
 
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Thanks for bringing the topic back to objective from circus. And thanks for your information too. I asked PayPal already, hoping for a reply tomorrow, let's see what they say. They CAN NOT charge anything to convert currency. As I said whatever they are charging from sending or receiving money/transactions is fair, but the latter is not.
 
ithehappy said:
Thanks for bringing the topic back to objective from circus. And thanks for your information too. I asked PayPal already, hoping for a reply tomorrow, let's see what they say. They CAN NOT charge anything to convert currency. As I said whatever they are charging from sending or receiving money/transactions is fair, but the latter is not.
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Trust me they are not the ones charging to convert the currency unless you explicitly ask them to.
If you had transferred the $1000 to your account, they did that only. Your bank converted those $1000 using their own rate which is always going to be less than the actual rate for the day as that is how they are going to earn profit.
 
Okay, say bank has done it, but the amount is still not credited into my account. And under PayPal's statement detail they clearly mentioned that they transferred at a rate of 59.7, not 61.9. If bank took the exchange rate adjustment fee, then that should appear under bank's statement, but under PayPal's transaction detail they should have mentioned that it was transferred at actual rate, i.e. 61.9, but they didn't, which might be a probability that it's PayPal who took the exchange rate fee but bank.
Anyway, everything will be cleared when they reply.
 
Bank has no role in the conversion part and paypal charges fee of 2.5% to convert . I remember this since i read the 2.5% part years ago which was well hidden in their corporate jagron .It is extremely difficult to find the current fee from paypal's site .Their 2.5% conversion charge is justified since they have to convert $'s into INR , if you use a account which can accept $'s no fee would be applied . If paypal directly transfers them to your account your bank will apply fees which in many cases will be far greater than paypal's fees. Though their 4.4% +0.3$ fee is still on the high side , you can use alternatives like alertpay or even direct transfers if it involves large amount like 1000$ . IT will be far cheaper but as mentioned previously inconvenient for your client . Please check the two images i am attaching
C52FZdE.png

75E5HyU.png
 
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Thanks bro, I should have read their 'core' policies before proceeding. Yeah, there will be some rates applied, otherwise how could one run business, but what they are doing, it's unreasonably high, 4.4% plus 2.5% or whatever, it's just damn high.
Btw, by direct transfer you mean wire transfer right? I have no idea about 'alertpay', will Google it.
 
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I just confirmed my card with PP. Deducted $2 ie around 125 INR and got back 0.2 INR back. PP says they sent back $2, bank says they dint. I just gave up due to small amount but that was really effed up.
That said, you don't have many alternatives when it comes to transferring USD to INR with such ease. Wire and money transfer like WU, Moneygram come to mind but they are non-reversible so if they money is for payment (services or otherwise) not many are going to agree.
 
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