I just noticed this the other day when my balance changed, since I don't make it a point to check for currency conversions. But when the starting digits of your balance changed and you didn't spend at all, then you will definitely notice it. The ending digits, not so much, lol. So I googled the currency conversion for that day. It's P44.50 to $1. Then upon computing, Paypal has already taken P69 ($1.56) as my money sits there in my account. So I then decided to transfer my money to my bank account to see how they will compute it. The conversion was P43.29 to $1, despite the day's exchange rate at P44.50 to $1. I'm sure they probably had that shortchanged currency conversion covered in their fine print, since they need to make money as a business, but deducting money while it's just sitting there seems like an underhanded way of taking more money from their users, aside from the upfront fees that they charge. Has something like this ever happened to you? Do you also notice this as a user?
I actually haven't noticed this, but I only dabble in multiple currencies on my PayPal account. However, you're definitely right that the terms of service is going to cover this issue, and that PayPal is 100% guaranteed to be allowed to do that, according to those terms. It's something that other services do quite often, and users will notice that the conversion rates won't always match up for their funds. It's pretty annoying, to say the least.
Yeah, imagine how much they're pilfering from the collective accounts on their database.. Specially the accounts of business users. The mere fact that Paypal already deducts money as it sits there is quite sneaky. At least US users don't have to deal with this pilfering.
No, I haven't noticed this at all. Maybe it's because I keep my Paypal money in USD. I only convert when I withdraw to my bank. Also I do not keep money for long in my Paypal account. I rather have it in my bank account where I can use it. Why does anyone keep money for a long time in their Paypal accounts?
I didn't actually notice. But I know it hurts when I've made this much in $, and I see it converted to so much in GBP. It's good to bear that in mind. I wasn't even aware of the charges. I have to admit, I often leave money in my paypal account for longer than I should. There's no reason for it, it's just something that happens that I obviously need to get out of LOL
I am not the trusting type, so I transfer any money I have in Paypal to my bank account as soon as possible. Once it's in my bank account, I can use it anytime I want to. When I need to pay something via Paypal, even if there is no money in my Paypal account, the money will be drawn from my bank account automatically.
Perhaps I'm too trusting! You've given me food for thought there. It's so funny because as soon as I saw your last comment, I rushed to check my Paypal account to ensure my money was as I last left it...phew! That money will be being transferred PRONTO LOL
I didn't notice that because I stopped selling internationally on eBay. Too many packages getting lost. It doesn't surprise me that they make mistakes in converting currency but I wonder how many people actually challenge them on it.
I've carried a balance in my paypal account for literal years without any change whatosever. I'm not sure what might be happening on your account, but it's likely due to an error or daily fluctuation in currency exchange. There's no way that they'd be randomly removing money from your account outside of your account being compromised or an error on their system. Paypal's earnings comes through their fees and being able to leverage all of the capital within its system for "free". It's like a bank without the true need for a massive float.
@ Victor, don't they set your home currency by default once you decide to withdraw for the 1st time? I always see the peso value and it's dollar equivalent on the main page. @ ACSAPA, well a few google searches later, it seems like this is the "norm" when you use a foreign currency. A lot of people noticed it too, but of course, since we are using their service and they monopolize it, then we have no choice but to comply.Log In Log In @ nonsiccus, unless you use a foreign currency, the dollar currency that you have will have no fluctuations whatsoever.
That interesting, I actually have never noticed that. I have a PayPal debit card and I usually like to keep my money in my PayPal account as well. Everytime that I seem to check on my money I see that everything is there (down to the last cent). I'll keep my eyes open though. Nothing would hurt me more than not having the amount of money that I want transferred; all of the money I want transferred.
Well, you won't really be affected with the deductions unless you have a foreign currency in your account. My dollar account in Paypal has always remained intact.
I know money's money and every penny helps, but at first I was worried this was chunks of money disappearing out of people's accounts! I'm just glad I now know and will move my money more frequently, maybe as and when I make it. It's during instances like this I wish I lived in America LOL
Well, for me Paypal has always been my online payment program of choice. But then I live in the United States, and yes we are subjected to the fees, but then who doesn't have fees for users. Anyway, I have found that even when working online unless the website pays through paypal I tend not to be interested. I don't like it when someone ask me to give them my checking account information or when I am told to sign up with some payment program I have never heard of till that moment. Paypal may have their issues at times but to me they still have one of the better online reputations when it comes to currency transactions, at least that has been my experience with them.
@ pafjlh, Yes I agree, everyone is subjected to fees, but the difference is that you get charged the legit fees, while international users get charged underhandedly by lowering the conversion rate. And with millions of international users using Paypal, for sure that's a lot of accumulated funds.
It happens all the time with PayPal. They always pay you less when you trade the dollar. Perhaps, you got to think that it's their way of making money. They say that they don't charge any money for free accounts. But nothing seems to be free. However, if you transfer money to your bank in US, there are no conversion fees. I still think their fees are reasonable though.
@bonzer, Yeah, they are making a killing with these lowered conversion rates. I live outside the US, so I have no choice but to put up with it. At least they compensate by giving a good and secure service.
Well, yeah, PayPal is pretty known for being really greedy. They get money from the currency conversions, then from fees for each transaction... And probably more. Their conversion rate is also pretty in their favor as well, as opposed to just be from a bank or so directly. But hey, what can you do..
Oh yes, the exchange rate that Paypal offer is hardly competitive! They know full well that they can get away with it too so I wouldn't expect to see any changes any time soon.
@Aladar and @missbishi, Both of you guys are right, and if you are offering a service like a gig in Fiverr for example, instead of you getting $4, they deduct 8 cents, so you only get $3.92. And there are lots of sites like Fiverr that freelancers use. So you can just imagine how much underhanded money they make off of us? If only they had a fierce competitor, then they will be forced to lower their fees. But since there isn't any, then we are forced to use them.
