Why don’t eBay use PayPal’s exchange rate?
Tamebay reader John has been looking at the exchange rate and wonders why eBay’s exchange rate is fixed at unrealistic levels. To be fair eBay display exchange rates as “Approximately” and you’ll get PayPal’s exchange rate when you come to pay, but you might not buy in the first place if you think the item is too expensive or as is currently the case have a nasty shock when you come to pay and find it costs a lot more than you were lead to believe. Here’s John’s thoughts:
I saw the bank rate today for Euros tipped over 1.24 I wondered what rate eBay used to convert items listed in Euros. I was astonished to find they are using the standard bank rate.
Here’s an example of a product on showing on eBay UK, sold by a German seller and listed at 850 Euros it is converted by eBay currently as “Approximately £685.15” which is an exchange rate of £1=1.24. If I go into PayPal and get a conversion rate, its currently 1.2 so this item would ACTUALLY COST £708.33
I realise there are lots of varying buying rates available for currency, but NOBODY can get the standard bank middle rate so surely, especially given their close ties with PayPal, eBay should be using PayPal’s current conversion rate.
This is making items appear cheaper for buyers than it will actually cost them, and applies to shipping costs too, it also affects UK sellers, where same items will look cheaper due to unrealistic exchange rates. Surely this is a fundamental flaw?
I realise its an ‘approximate’ conversion, but given that in reality most people will have to use PayPal to pay for overseas purchases, PayPal’s rate would be much more reasonable.
Final tip from John to save money
If a currency payment needs to be made using PayPal, its actually better to convert your £ balance into the currency first, rather than letting paypal convert your payment, bizarrely they use 2 rates !!
eg I try to make a payment to someone for $100 without converting my £ first, I get a rate of £1 = 1.63147, but I can convert my £ first myself and get a rate of £1 = 1.63988
strange but true……………