Purchase cost from UK sellers on Ebay/USA never adds up??? (1 Viewer)

[ivanmoe]

Let me explain...

I make a purchase on Ebay on the assumption that the cost will be based on the item price plus shipping. Before doing so, I get a total and figure the GBP to USD conversion so that I know what the transaction will cost me. However, when I go to conclude the purchase with Paypal, the total is ALWAYS higher by two percent or so. What I find annoying about the process is that I'm never informed prior to the purchase of this apparent surcharge. I've never refused to pay the overage, but I have considered simply walking from the purchase after informing the seller of my rationale for doing so. Can someone familiar with the vagaries of Ebay and Paypal please advise as to what this is all about?

-Moe

 

[jazzeum]

Don't blame the seller. Paypal uses a conversion ratio which results in lower dollars to you. Presumably they pocket the difference between their quoted charge and what it actually costs them to make the conversion.

This is similar to when you are overseas and you go to exchange dollars for Euros or Pounds. What you receive is normally less than you might see on the results for foreign exchange posted in the Journal or your newspaper of choice.

Unless we are talking about astronomical amounts of money, the difference shouldn't be that significant, although it is annoying, none the less.

 

[Toy Soldier Brigade]

I may be wrong, but I believe the final conversion is based on what the exchange rate is at the exact moment you send the money. I noticed this when sending money to UK vendors. The quoted price is always a little off. I also have had it be off in my favor.

 

[ivanmoe]

Thank you both Brad and Paul,

Having reread my post and your responses, I realize that I may have not communicated what's really bothering me about this situation. Before going on, I need to mention that I do know that the fee for currency conversion is part of the process. That said, what drives me a little bonkers about the experience is that I (as buyer) am NEVER informed of the actual cost of the transaction BEFORE I'm committed to buying the item. It's only at the conclusion of the process, when I go to actually pay, that I'm informed of the surcharge. To my way of thinking, the Ebay/USA interface ought to explain the additional cost in big, bold type, before the "pay-up" rolls around. I simply don't understand how they get away with this. It really strikes me as a bait-and-switch scheme. Just another reason to hate Ebay, I suppose.

-Moe

 

[jazzeum]

I've been in that position and I think I had a What the F moment when it first happened. I've also had some conversations -- occasionally mildly heated -- with collectors in the UK who want to sell something but we're unable to conclude a transaction because of exchange rates.

 

[BLReed]

The quoted price is always a little off. I also have had it be off in my favor.

Yeah. me too. Then I figure if I have to concern myself with it I probably
shouldn't be buying.

If you are that concerned, choose to let your bank do the conversion. But then
again depending on your bank it may be higher. Currency conversions cost money.
Someone has to pay. WalMart pays the conversion on imports and adjusts the price
in the store. Surprise, surprise.

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[McFuglas]

I had exactly the same reaction and after a few such transactions was so annoyed that I did as BLReed has suggested and changed the Paypal settings so that the bank for my credit card does the conversion NOT Paypal.
For me it's less about the actual sum and more about the principle involved......I just knew I was being blatantly ripped off and found it infuriating (only PayPal could possibly make my bank's rates/fees look good!).