What would you like to ask?currency exchange rates on ebay?
Posted by: admin / Category: Buy Currencywhy is the exchange rate quoted on paypal 3 cent different than the current bank exchange rate when converting from sterling to euro
i bought an item on ebay a little while ago and when i went on to an online currency converter and the exchange rate was 85.3 pence sterling /1.00 euro while the paypal exchange rate is 82.3 p sterling/1.00 euro
Reason 1) Let’s say you buy something for a 100 sterling. You are expecting to pay 117.23 euros (100/.853).
Rather than charging you 117.23 euros, paypal charges you 121.51 euros (100/.823). This approximately 4 euros extra becomes a profit for payal. Well this is just a way that services like paypal or credit cards make money.
Reason 2) Currencies are highly liquid and their prices change very quickly. Either the price may have changed really quickly, or maybe paypal had just not updated their pricing or their policies may be to not update their exchange rates that often.
I AM SAYING THAT IT IS MOST LIKELY REASON 1. IT IS THE SAME WAY THAT CREDIT CARDS MAKE MONEY.
May 18th, 2009 at 10:27 am
Reason 1) Let’s say you buy something for a 100 sterling. You are expecting to pay 117.23 euros (100/.853).
Rather than charging you 117.23 euros, paypal charges you 121.51 euros (100/.823). This approximately 4 euros extra becomes a profit for payal. Well this is just a way that services like paypal or credit cards make money.
Reason 2) Currencies are highly liquid and their prices change very quickly. Either the price may have changed really quickly, or maybe paypal had just not updated their pricing or their policies may be to not update their exchange rates that often.
I AM SAYING THAT IT IS MOST LIKELY REASON 1. IT IS THE SAME WAY THAT CREDIT CARDS MAKE MONEY.
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