Foreign Currency in Australian PayPal Account – Will I Face Any Fees?”

Lneb2101 on 26/08/2018 - 18:18

Hi There,

Your tips on dealing with the following situation would be much appreciated.

I purchased a flight on Singapore Airlines from UK>Aus>UK. I was charged in £ and paid using a 28 Degrees card via an Australian PayPal account.

I am now want to cancel the flight and receive a refund. This is allowed under the ticket conditions.

The problem is this:

You may cancel your Singapore Airlines ticket online for a refund if you’ve purchased a ticket on a refundable fare…The refund will be credited to the credit/debit card used to purchase the ticket.

This means that Singapore will refund ~£1,300 to my Australian PayPal account.

I am concerned that I may face a transaction or exchange fee when a) the refund is received, and/or b) I spend the £ on a future purchase.

In PayPal under Wallet > Manage Currencies, it says:

When you add a new currency, any future payments you receive in that currency will be credited to that balance. Your primary currency is the default currency for sending and requesting payments.

This suggests that when I receive the refund, it will appear as £1,300 in my wallet. I can then use it to make online purchases in £.

Does anyone have experience with such a transaction? Did you face transaction or exchange fees?

Addendum: My first preference would be to send the refund straight to a UK bank account and avoid PayPal all together. But having spoken to the airline, I was put off trying to change the form of the refund.

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Comments

  • Doggiie on 26/08/2018 - 18:52
    +6

    If you paid with your 28 degrees, the refund should go directly back to your 28 degrees card. You will only get the amount back to your Paypal balance if you paid via a bank account.

    • chrisie on 26/08/2018 - 19:20

      Doggiie I agree with you comments. I got a refund from LightintheBox which I had paid in $US via PayPal/ Citi Bank Debit card. This refund US$ went via PayPal into my Citi Bank Debi card in $AU with no charges applied.

    • neb2101 on 26/08/2018 - 19:53
      +1

      Okay, thanks. As the Singapore website says that the refund will be paid to the PayPal account I had not considered this permutation.

      Confirmed here

      How your money is refunded depends on how you made the original payment.

      • If you paid with a credit card, the money is refunded to your card. If the card you paid with is closed or invalid, the money will still be refunded to your credit card account.

      • If you paid with your bank or PayPal account balance, the money is refunded to your PayPal account. After you have received the refund, you can withdraw money from your PayPal balance to your bank account.

      • Ughhh on 27/08/2018 - 06:44

        Key word is

        If you paid with your bank or PayPal account balance, the money is refunded to your PayPal account.

  • foxmulder on 26/08/2018 - 21:42

    I bet for this large amount there will be a gap between what you pay and what was refunded due to currency exchange. Should be minimal if you use 28 degrees rate, if you use PayPal rate the gap can be quiet a bit.

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