NBR Best Currency Conversion Rate to Pay With On Paypal? The Paypal One or the Bank One?

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8 posts, 7 members

tannygirl

3392 posts

Sun 23 Jul 2017 10:38am

So this morning I did an overseas online order. Paypal is my prefered choice to pay through since it's secure. However, today as I was paying I noticed for the first time there were two different currency conversion rates the Paypal one was at a rate of 1NZD = 0.70 USD or 1USD = 1.40 NZD. But this time I noticed there's a second option which was like pay at the rate your bank gives you. I didn't check the second option out because I stuck to what I know but I'm wondering if anyone has tried paying at their bank's rate? I bank with Westpac. I'm just wondering has the bank's rate proved to be a cheaper option consistently? Is it more of an up and down rate? Would you advise to use the Paypal rate or the bank rate?

Charmmy-Kitty

639 posts

Sun 23 Jul 2017 1:17pm

That's an interesting point! I've used paypal for countless transactions, but never noticed that the other conversion is from the bank. I do know that the conversion on paypal isn't the same as what you'd get if you just googled USD->NZD. I think paypal charges a little extra as like a conversion fee. But I also know (from aliexpress) that using you visa for an overseas currency online charges some 'conversion margin fee' or something like that. I guess the easiest way to compare is to build virtual carts on a lot of sites on different days and then get to the paypal checkout option without actually confirming?

MissQT

1547 posts

Sun 23 Jul 2017 3:06pm

I've never used PayPal before, I've heard enough of it to know roughly how it works but I'm not 100% on the facts. The foreign currencies fluctuate constantly so it might be that one day the PayPal rate will be better but then the next day the bank rate might be better. It will also depend what currency you are purchasing in, as the foreign exchange difference will vary from country to country. You should try and see what rate your bank uses on that day so that you can compare the two.

Macs

5351 posts

Sun 23 Jul 2017 4:54pm

I wouldn't have a clue about how to use Pay Pal. I heard it's the best way to order from America.

Charmmy-Kitty

639 posts

Sun 23 Jul 2017 5:37pm

Paypal is great for online purchases cause they've got buyer protection and it heavily favours the buyers. So if your item doesn't arrive or it's broken or fake then paypal almost always manages to return your money.

Mumof3Munchkins

2718 posts

Sun 23 Jul 2017 8:27pm

Oh wow, didn't realise you had another option? I always go through Paypal if I can as it gives you buyer protection and if anything goes wrong, you can get refunded. I haven't had an issue since using Paypal and I've been using it for years. Gives me piece of mind.

Julieal

915 posts

Mon 24 Jul 2017 7:17am

I believe the Bank rate is a now rate plus a small margin whereas Paypal charges a slightly higher rate to cover fluctuations including a fee. Probably not a lot in it overall.

Kimrose

1419 posts

Wed 26 Jul 2017 8:49pm

I pay with my credit card. I dont know anything about Paypal.