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Paypal exchange rate - what a con !


ambient
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I've agreed to purchase a 6 string fretless bass from a member who lives in Germany.

We've agreed a price of E1889 including shipping, which according to my bank is £1570 at todays exchange rate of £1 = E1.1473

I just tried to pay the guy via paypal, and paypal are trying to charge me £1629.80, that's £59 more, their exchange rate is £1 = E1.5934.

They're already charging a 3.8% fee, that I've agreed to split with the seller.

What a rip off !

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[quote name='yorks5stringer' timestamp='1388698720' post='2325127']
Why not agree to a bank transfer direct and miss out PP? You'll find your IBAN number on your account.
[/quote]

And then you can find out how much your bank charges extra for foreign money transfer and you can bet they won't give you todays exchange rate either.

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[quote name='BigRedX' timestamp='1388698928' post='2325130']
And then you can find out how much your bank charges extra for foreign money transfer and you can bet they won't give you todays exchange rate either.
[/quote]

It's a £10 fee.

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[quote name='BigRedX' timestamp='1388698928' post='2325130']
And then you can find out how much your bank charges extra for foreign money transfer and you can bet they won't give you todays exchange rate either.
[/quote]

It's a £10 fee, I'm with Natwest.

But it's like warwickhunt said above, I'm a student and that's a huge sum to lose, that's why I got the guy to agree with Paypal, and to split the 3.8% fee. I'm not saying for a moment that there's anything dodgy about the guy, but I like to play safe. When I sell something I lie to meet the buyer in person. Just in case anything goes wrong.

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Hey folks, I used Transferwise (www.transferwise.com) when I bought a bass from Denmark on here and actually paid no fees at all (I think as a first time user!) I too was shocked at having to pay over the odds for money crossing international boundaries so did some digging on the net and came across the site B). It's already been pointed out on here ([url="http://basschat.co.uk/topic/190917-check-this-out/page__hl__transferwise__fromsearch__1"]http://basschat.co.u...__fromsearch__1[/url]), hope this helps.

Edited by jimbobothy
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[quote name='noelk27' timestamp='1388713825' post='2325304']
You sure about your figures? In the first line, at the rate quoted, your £1,570 buys 1,801 euros. You need a rate closer to 1.20 to reach a figure circa 1,889. The figures in the second line are even more screwy. Not saying PayPal's rates won't be less favourable than bank rates, but those numbers just don't stack.
[/quote]

Here's a screenshot of the Paypal page.

if you log into Paypal, go to your profile and click currencies you get to this page.

You enter the currency that you want to pay in, and enter how much the seller needs to receive, and it calculates how much you'll have to pay.

That's where my figure of £1629 comes from.

You can see Paypal's exchange rate just next to the final figure they want to charge me.

Edited by ambient
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Here's a screenshot using Natwest's currency converter.

E1889 = £1440.

A bit of a difference :D.

I realise that that's probably not the true amount I'd have to pay via my bank, but I doubt it's too far off.

Edited by ambient
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[quote name='ambient' timestamp='1388715142' post='2325310']
Here's a screenshot using Natwest's currency converter.

E1889 = £1440.

A bit of a difference :D.

I realise that that's probably not the true amount I'd have to pay via my bank, but I doubt it's too far off.
[/quote]

Not bad! I've just plugged the figures into the halifax and it would cost the following:

Recipient's country GERMANY
Sterling amount 1637.48 GBP
Currency amount 1889.00 EUR
Exchange rate: 1 GBP =1.1536EUR
Our fee: 9.50 GBP
Total debited from your account: 1646.98 GBP

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