Paypal grumble…

Slightly off-topic post, sorry. Like most people that shop online (especially on Ebay and from private sellers on discussion forums) I use Paypal extensively. Normally it’s relatively easy, safe and convenient. However, earlier this week I started getting error messages that the two debit/credit cards I have linked to my account were no longer usable as payment. I managed to link a third card and complete the transaction, but I started wondering what was going on.

It turns out that Paypal at some point last week have made the default option for transactions the same currency that your credit card is issued in, even if there has for a long time been an option to set this per credit card you use. I’m sure that somewhere this is listed as a “customer service initiative” or “security initiative” (yeah!), but nevertheless it is one that just happen to give Paypal a further few percent commission on the exchange rate (I haven’t calculated it exactly but it looked like a 3-5% markup depending on the currency). This is of course unacceptable when I pay fees already (or the seller pays them, which means in the end I pay them).

Fortunately after some googling it turns out there still is a way to pay the actual transaction amount and let the card issue handle the conversion (which in my case they do with 1% commission on the official rate from the National bank). Before completing the purchase, click to change payment method and then click the exchange rate to change back to using the card issuers rate. I haven’t tried with a direct Paypal transaction (only via Ebay) but I will be keeping my eyes open in the future….

Oh and, needless to say I will from now on always avoid using Paypal if there is another payment option listed where I shop…

EDIT 29/11-16: Have now tried to send money via Paypal directly and here I can’t change the conversion option. Then I spotted this in the latest revision of the user agreement “Where your payment is funded by a Debit or Credit Card and involves a currency conversion, by entering into this agreement you consent to and authorise PayPal to convert the currency in place of your Credit or Debit card issuer.” Which basically means that they decide the exchange rate and if you don’t like it you can f*** off…

Anyone know of any good alternatives to those Paypal bas***ds?

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