Alternative to PayPal Currency Conversion Rate

Hi

how can I get a better currency rate than paypal?

I bought some item on ebay which ended up costing me more than what was calculated on ebay
because paypal rate is approx 2-3 cents less than the actual rate

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Comments

  • +2

    Assuming that the linked credit card has a better rate.

    http://www.reddit.com/r/australia/comments/22ewbo/is_there_a…

    /thread

    • is it cheaper or same if the link account was bank?

      also what other credit cards have good rates?

      • depends on your bank.

        International conversion fees wildly vary, you'll need to look it up yourself.

        • i checked with the bank, they say visa charges 2.5% fee of the total cost
          because I used a debit card

          would that work out cheaper than paypal?

        • @tyler.durden: look it up yourself.

        • @tyler.durden:

          I agree, I found it cheaper to use paypal conversion than to take the extra 3% foreign transaction fee on top.

  • +10

    28 Degrees?

    • any other cards?

      • +14

        Citibank Plus

      • +6

        Bankwest Platinum. 0% forex fees.

        I have currency conversion turned off by default in my Paypal account, whenever I buy something I always get charged in the foreign currency and let Mastercard do the rest.

        The rate is much better than Paypal.

        • +3

          Bankwest Platinum here too. Similar to 28 Degrees but with complimentary travel insurance. I also have Citibank Plus for using overseas ATMs.

        • -2

          @dazweeja: I load extra money into 28 degrees account when going overseas and use it as a debit card at ATMs with no charges.

        • +3

          @Junk Collection:
          I used to do that too, but they changed their fee structure…more than a year ago now. You now pay "Cash Advance Fee 3% of the cash advance or $4 (whichever is greater)" on ATM withdrawals (previously there was no cash advance fee).

          I've since got myself a Citibank Plus account for o/s ATM withdrawals and bank transfers and continue to use the 28degrees card for foreign currency purchases.

        • +3

          @Junk Collection:

          I used to do that too but like Osprey said, they started charging fees for that in January 2014.

        • @Osprey06: thanks for the warning as it's been a while since last traveled, I'm booked for holidays soon and will now look for an alternative for travel cash.

  • -1

    CMIW,assuming you find better rate(s), you are still stuck with Paypal conversion rate since you're buying from Ebay.

    Unless you're prepared to do telegraphic transfer which fees will negate whatever savings (if any) you may get from which ever bank you are with. if that option is even offered by the seller

    And you'll lose buyer protection if you do telegraphic transfer or bank deposit.

    • +2

      not necessarily stuck with a Paypal conversion rate….
      I assume the OP has purchased on a non-AU ebay, with item listed in a foreign currency.
      In that instance, a 28 degrees card, or Citibank, etc will allow the payment to be made via Paypal in foreign currency, with Mastercard/Visa doing the exchange rate.

      I have frequently purchased cheap electronic gizmo's on ebay.com in USD as they are cheaper than ebay.au in AUD (works out as only a few cents, but that's the OzB way!!)

      • is there any fees when visa/mastercard does the conversion?

        • Depends on your card issuer.
          28 degrees and citi have no fees.
          'big 4' Aus banks do charge.

        • -1

          @battler:

          is 28 degrees and citi equivalent to visa/mastercard?

          Cos I checked, and the charger for

          visa = 2.5% fee x total cost
          mastercard = 3% fee x total cost

        • +1

          Second feature listed on 28 degrees Mastercard website:

          • No international transaction fees on purchases

          Where did you see 2.5%?

        • @battler:

          I was told this by my bank…

          cos I use debit mastercard

          and it is

          -3% for debit mastercard
          -2.5% debit visa

        • +1

          @tyler.durden:

          and your bank is one of the big players, yes?

        • @battler:

          yes,
          -3% for debit mastercard,
          they say this is the fee, mastercard charges

          i also got a smaller bank and they say visa charge
          -2.5% debit visa

        • @tyler.durden: Which 28 degrees then waives…

    • There is an option in the checkout to bill the card in the original currency of the listed item.

      • yes, but what i want to know is if it is cheaper than paypal conversion…

        cos the option you say would get hit with
        -3% for debit mastercard
        -2.5% debit visa

        • +6

          @tyler:

          one more time:

          Second feature listed on 28 degrees Mastercard website:
          No international transaction fees on purchases

          the fees you mention are not MC or Visa charges, they are the card issuing bank's charges.

        • @battler:
          …and the 28 degrees card also use the 'standard' mastercard exchange rate (source:http://www.28degreescard.com.au/using-your-credit-card/travel.html "features including…MasterCard International currency exchange rate of the day"), where the major banks and Paypal tend to 'pad' the exchange rate so they make a little more money out of each transaction. I believe Citibank also use the equivalent Visa exchange rate for their Citbank Plus visa debit card.

          If you want to calculate and see the difference yourself, the 'MasterCard International currency exchange rate of the day' is available here:
          https://www.mastercard.com/global/currencyconversion/

          You need to first convert into USD (if not already USD) and then convert to AUD.
          E.g. if your total purchase including shipping is GBP100, then you select the date of the transaction (I'll use 13/Jan/2015), then set the base currency as 'GBP'. multiply your GBP amount (GBP100) by the USD cross rate (1.518601) then record the result (USD151.8601). Then change the base currency to USD and multiply the result you recorded above (USD151.8601) by the AUD cross rate (1.230164) and you should have a very close estimation of what your card will be debited (AUD186.8128…) IF you tell paypal to debit your 28degreescard in the foreign currency amount. I say very close estimation because sometimes, depending on time of day and delay between the transaction being put through and it reaching gemoney (28degrees issuer), the actual transaction may not be processed until a later business day which may mean the rates change slightly. Either way on every occasion when I've tried to estimate the end cost in this manner, I've always had less than 1% variance between estimated cost and actual debit amount.

          Paypal's currency conversion tool (available when viewing your Paypal balance) is currently converting GBP100 to AUD193.86…so by avoiding using Paypal's own 'padded' conversion rate you would save around AUD7, or 3.6 per cent of the price you would have paid had you used Paypals rate, rather than the MasterCard rate of the day.

  • +2

    how can I get a better currency rate than paypal?

    Visa and Mastercard will be a better rate than Paypal.

    However, most Banks and other Credit Card issuers add on to the transaction their own fee. As you have stated, in your case 3% for debit Mastercard & 2.5% for debit Visa.

    To avoid these additional charges and to get a better rate, the savvy OzBargainer will use 28 Degrees Credit Card or Citibank Plus Visa.

    PS 1st rule is we don't really talk about this.

    (https://www.ozbargain.com.au/wiki/cards_with_no_overseas_tra…)

  • -1

    Qantas Cash http://www.qantascash.com/

    You can "load" your cash onto the card as one of 10 currencies available. There is no foreign exchange fees or bank transaction fees. They make money off you obviously from the foreign exchange rate which I found reasonably competitive when I use it for my holiday at NZ last month.

    The down side is you need to "Load" your card as this is works like a MasterCard Debit Card. The "Loading" time can take up to couple of business days depending on banks and which day you load your money (E.g. Monday morning vs Friday afternoon)

    • +1

      Bankwest Platinum, 28 Degrees or Citibank Plus Visa all have better rates in my experience, and you don't have to load the first two because they are credit cards.

      • what is the requirement to get the cards?

        minimum salary etc..

        can u get the card, if u are on government benefits?

        • +1

          Citibank is a debit card. ie savings account with a Visa Debit card attached.

          28 Degrees & Bankwest Platinum cards are Credit Card.
          Normal lending criteria applies.

        • +1

          Citibank Plus is debit only so I doubt there's minimum requirements. Also a good time to get one:

          https://www.ozbargain.com.au/node/179025

          Bankwest would be much harder to get because the Platinum has a $6000 minimum limit so income requirements would probably be more than $50000 at a guess (I can't find an exact figure).

          Edit: Beaten by Baysew ;)

    • IMO Qantas cash is not a good deal compared with 28 degrees/Citibank plus/Bankwest Zero.

      The act of 'loading' itself (even if it is free) is a royal pita. With the others you just put the transaction through and pay it off later (or ensure there's enough AUD to cover it). You are only required to manage one denomination, rather than predict how much you will need to spend and the 'unload' any surplus amounts etc.

  • The rates through PayPal or pretty much all banks are where they hide a hidden fee.

    This may be a hoop to jump through but if you are moving a lot of money internationally often or buying often I would suggest trying to get a multiple currency account setup through your bank (check if there are account fees) I believe Citibank have good multiple currency accounts, but if someone can find better deal on that please let us know.

    After that is setup go onto a site like currency fair or XE.com and setup an account with them. There rates are usually pretty much what you would get on a foreign exchange marketplace.

  • -2

    I see adverts for oxforex all over the place claiming to give better rates then all the banks. ING direct also use oxforex for all there international conversions and there rates were much better than ANZ when I last check about 6 months ago

    • +1

      ING direct also use oxforex for all there (sic) international conversions

      Not for Visa transactions.

      The conversion rate for Visa is obtained from Visa and the ING fee is 2.5% on the purchase amount.

      Conversion
      Fees

  • Hey Guys,
    A bit late but just bought an item from Ebay Germany at 60 Euro (incl. shipping). Paypal was $91 AUD and Bankwest Platinum worked out to be $88 AUD.

  • Help guys i have 301euro to pay a guy in germany yes i could pay as friends and save a fee.
    But might just go with goods.

    My big question is im told using your bank account and or paypal balance is cheapest,and when doing a dummy run it does show you estimate costs of bank account,cards etc.
    But yet i heard if you use say a citibank plus card its cheaper with this?
    But why does paypal say its cheaper to use your bank but yet others say its better to let the card to conversation
    I understand if your card bank charges fees for overseas but mine does not.
    So how should i pay through bank account or have citibank do the charge?
    Im paying a guy in germany and im also trying to work out what amount i add so he gets full 301 euro if sending money for goods.

    • There's a lot of variables here which all affect the outcome in different ways:

      • What bank are you with (Citibank gives proper exchange rate)

      • Are you using a debit card or credit card (credit cards will charge you cash advance fees)

      Until you let us know these things, we can't really help you.

      • Citibank plus and debit card

        • You're good to go then, use the bank account :)

        • @MathNerd:
          I did in the end i was told it was cheaper to use bank account tgan use credit or debit card.
          But until it officialy goes through and shows up on my account i know for sure.
          But im pretty sure i saved a good bit by have citibank use its conversion than paypal.
          This was a private sale,could have used friends and family and saved more but never bothered.
          But i take you can use this method with ebay items as well.
          I thought paypal tried to stop is using our cards do conversion

  • But im pretty sure i saved a good bit by have citibank use its conversion than paypal

    Using PayPal conversion rates always ends up worse for you compared to using your bank/card rates.

    I thought paypal tried to stop is using our cards do conversion

    It's illegal if they did that. What you should be saying is that they made it harder to use your card's rate, by hiding the options behind multiple layers of menus etc.

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