eBay purchases in foreign currency. Hows it work with a Zero Conversion Fee Card versus PayPal conversion?

GLO on 09/05/2014 - 00:50

Hi,

Whilst this has lightly been covered over 12 months ago, but I wanted to ask the community if I understand this correctly.

When I purchase in US$, and pay using PAYPAL with my Citibank Plus Debit Card (with no Fees), is this the best way to do this transaction?

Amount US$100
PAYPAL Charges me US100,
Citibank Plus charge me their Forex rate, so it cost me approx A$107.29 (1 United States Dollar = 1.072969 Australian Dollar)

What would this cost me if Paypal did the conversion?
Converting within your PayPal account and not as part of a transaction it says its :
2.5% above the wholesale exchange rate, apparently 1 AUD = 0.914155 USD for balance conversion versus 1 AUD = 0.904779 USD for Payment conversion

Have I understood this correctly?

Thanks in advance.

Financial

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Comments

  • hamza23 on 09/05/2014 - 01:01

    Yes it works out quite a bit better if you use a no fee forex credit card.

    PayPal Conversion Rate as of 9 May 2014: 1 Australian Dollar = 0.904779 US Dollars

    So Paypal will charge you $110.53 AUD if you let PayPal convert

    Compared to $107.29 AUD that Citibank will charge you if you pay in USD and let Citibank convert.

    Just make sure you set your citibank card to charge in USD in PayPal by default.
    In conversion options choose 'Bill me in the currency listed on the seller's invoice.'

    Or you can change it permanently in your profile.

  • shaybisc on 09/05/2014 - 09:40

    "Or you can change it permanently in your profile."

    How do you do that? Doesn't seem to be an option in 'edit credit card information'.

  • ferguscan on 09/05/2014 - 10:06
    +1

    Never use the PayPal conversion. You will get screwed.

  • GLO on 09/05/2014 - 10:38

    Thanks!

    As this is a US$400 purchase, so it looks like I will have to load up the Citibank Plus card.

  • Paul Atreides on 09/05/2014 - 11:33

    are you sure that card has no fees? I think i remember reading the PDS and it said it did.

    its why i still have my 28 degrees card.

  • Baysew on 09/05/2014 - 12:55
    +1

    Yes - No Fee for Citibank Plus. The PDS listed a whole heap of cards that would incur the fee, but Citibank Plus WAS EXCLUDED.

    Also here is link to OZBargain wiki for Citibank/PayPal

    • Paul Atreides on 09/05/2014 - 15:07
      +1

      time to cancel my 28 degrees

  • GLO on 11/05/2014 - 22:12

    Ok, here's the update and note it's far from finalised.

    US purchase amount US$374.98
    Used my linked Citibank PLUS debit card via PayPal.
    PayPal was changed to US currency as default.

    I can see the purchase landed in US $, but my Citibank PLUS card was debited A$415.83
    Which works out to be A$1=US$0.9017627

    Visa website http://usa.visa.com/personal/card-benefits/travel/exchange-r…
    Is stating 1 United States Dollar = 1.069869 Australian Dollar

    Citibanks Forex page http://www.citibank.com.au/global_docs/onlinetools/ci1.htm
    Is showing
    Effective Date: 09/05/2014 Citibank Buys Citibank Sells
    Currency Code Drafts, T/T's Drafts, T/T's
    US Dollar. USD 0.9473 0.9273

    Edit: it looks like PayPal did do the currency conversion.

  • Power Penguin on 18/05/2014 - 14:36

    So essentially if you are buying anything overseas and you know they will charge in local currency (of their country) its best to use your citibank card even if you aren't paying via paypal?

    • hamza23 on 18/05/2014 - 22:15
      +1

      Yep :) Or any other card that doesn't charge foreign transaction fees such as 28 degrees.

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