I was new to Paypal and was not knowing what is their currency exchange rates for a foreign transaction. I just sent them an email regarding this to get exact detail about Paypal currency conversion fees?
I had a good conversation with them about this and finally I have concluded the things I understood about the Paypal currency conversion fees in India is as follows:
How to determine Paypal currency conversion fees or exchange rate ?
When you make a payment in foreign currency, they calculate the conversion rate for you, if the local currency is supported by PayPal. You’ll see the exchange rate when you make your payment. If you use your credit card, you can choose to use your card issuer’s conversion rate instead of theirs.
Indian Rupees is currently unavailable in the currency list they support. They are working hard to support this currency in the near future.
Here’s how to select a conversion rate when you make a payment:
1. Click “Other Conversion Options” under Payment Method on the “Review your payment” page.
2. Choose “Use PayPal’s conversion process” or “Bill me in the currency Listed.”
3. Click “Submit.”
You can see their conversion rate under > Payment Method on the Review your payment and send page.
If you choose ‘Bill me in the currency listed”, your card issuer determines the foreign exchange rate that applies to this payment. They will not be able to advise you of the rate at the time of payment but you will be able to find it on your credit card statement after the purchase.
Note: If you use Visa or American Express, you can only use your credit card issuer’s conversion rate.
When you receive money in other currency, you can accept the payment in that currency (conversion fees is applied when money is withdrawn to your bank).
When your money is withdrawn from your PayPal account to your respective bank, it’s automatically converted to the currency in Indian Rupees (INR). This is in compliance with the recent regulation that was set forth by the RBI.
PayPal’s exchange rates are updated daily.Here is how to view or check the current exchange rate:
1. Go to www.paypal.co.in and log in to your account.
2. Click on Profile near the top of the page.
3. Click on My money.’
4. Click on Currencies* beside ‘PayPal balance.’
5. Enter your information and click – Calculate.
*Indian Rupees(INR) is currently unavailable in the currency list they support.
Here’s how Paypal set their exchange rate?
They receive a wholesale rate quote from their bank twice a day and add 4% to determine the retail foreign exchange rate to apply to transactions that involve a currency conversion. Their currency exchange rates are competitive with conversion rates used by banks and by currency exchanges.
When you withdraw money from your PayPal account to your local bank account, we automatically convert the money into the local currency at the time of the withdrawal request.
When you compare PayPal to similar means of sending and receiving money worldwide, such as wire transfers, PayPal’s exchange rate and service fees are the lowest available. PayPal is constantly working to expand and improve their service for their customers worldwide and is compliant with all applicable regulations. They look forward to continue to provide you with the best online payment service available in the world.
Thanks for Paypal’s team for providing me this info,Please check with their support team for more information.
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