Paypal v. Wire?
Nov 23rd, 2013, 06:12 AM
#1
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Paypal v. Wire?
Ready to send deposit but not sure if I should wire it or use Paypal, something I've never used. Opinions?
Have exchanged emails with owner who writes in fairly understandable English. The B&B in Provence near Gordes gets good reviews on Tripadvisor. Looks lovely to me.
Mary
http://www.lesterrassesdesoubeyran.com
Have exchanged emails with owner who writes in fairly understandable English. The B&B in Provence near Gordes gets good reviews on Tripadvisor. Looks lovely to me.
Mary
http://www.lesterrassesdesoubeyran.com
Nov 23rd, 2013, 07:07 AM
#2
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Personally I do not like using Paypal. You could use EFT to pay your deposit as this chambre d´hôte website states that they can accept payments of this type.
What you would do is setup an account with a foreign currency transfer service such as HiFX, Currency Online, or XE and link that account to your home bank account. With an internet connection, you then personally direct any foreign payments by filling in the payees BIC/IBAN numbers and specifying the amount you want transferred. There´s nothing easier and more cost effective in making payments in foreign currencies.
http://www.hifx.com/
http://www.currencyonline.com/
http://www.xe.com/
I have used XE extensively for transferring money into my French bank account and have used XE to pay for summer camps and other financial obligations. This will cost you less than what you´ll pay to use your credit card.
What you would do is setup an account with a foreign currency transfer service such as HiFX, Currency Online, or XE and link that account to your home bank account. With an internet connection, you then personally direct any foreign payments by filling in the payees BIC/IBAN numbers and specifying the amount you want transferred. There´s nothing easier and more cost effective in making payments in foreign currencies.
http://www.hifx.com/
http://www.currencyonline.com/
http://www.xe.com/
I have used XE extensively for transferring money into my French bank account and have used XE to pay for summer camps and other financial obligations. This will cost you less than what you´ll pay to use your credit card.
Nov 23rd, 2013, 07:37 AM
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>>This will cost you less than what you´ll pay to use your credit card.<<
My credit card charges 0% foreign transaction fee, plus the dollar to Euro exchange is almost identical to the rates I see in the financial papers & web sites. How is XE less than that??
I have a substantial payment (5,000E) for a gite due in August, and the owner does not take paypal or credit cards. We paid the deposit through a wire transfer & the proprietor complained that he had to pay 25E to receive the transfer. We had to pay $25 for the wire exchange plus a % or two over the rate I pay on credit card money conversions.
Currently, my thinking is to do a Mandat Postal at a French post office when we're in France in June. I charge the amount to my credit card & the post office writes a French check to the proprietor. My French internet friend advised this - plus she suggested that I do two transactions because a transaction of 5,000E must be reported to the authorities.
Stu Dudley
My credit card charges 0% foreign transaction fee, plus the dollar to Euro exchange is almost identical to the rates I see in the financial papers & web sites. How is XE less than that??
I have a substantial payment (5,000E) for a gite due in August, and the owner does not take paypal or credit cards. We paid the deposit through a wire transfer & the proprietor complained that he had to pay 25E to receive the transfer. We had to pay $25 for the wire exchange plus a % or two over the rate I pay on credit card money conversions.
Currently, my thinking is to do a Mandat Postal at a French post office when we're in France in June. I charge the amount to my credit card & the post office writes a French check to the proprietor. My French internet friend advised this - plus she suggested that I do two transactions because a transaction of 5,000E must be reported to the authorities.
Stu Dudley
Nov 23rd, 2013, 08:02 AM
#4
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I love Paypal and find it easy to use. I have mine set up on the credit card I use most often. If I had an issue I can at least dispute the charge (although I have never had an issue using PayPal at all). You determine who you make a payment to with PayPal, and I am not the most tecnologically advanced person, so I am not sure what the concern is.
Nov 23rd, 2013, 08:14 AM
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I used to love Paypal until a bunch of fraudulent charges showed up on a credit card (a collection of $1 "are you paying attention to your bill" charges and one $3500 one-way Lufthansa business class ticket from New York to someplace in the ME. About the same time, a few other people we knew also had a cluster of similar fraudulent charges -- a bunch of small "testing" charges and one big one. And the only common denominator for all us was that we had used Paypal recently.
Nov 23rd, 2013, 08:52 AM
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You'll pay a fee no matter which service you use to transfer funds, including Mandat Postal (postal money order). No one does this for free or they wouldn't be in business very long.
I've never used PayPal to send a payment to Europe, only to receive payments (in Euros so that there is no exchange rate involved).
From PayPal: Transferring money outside of the US - Small fee of 0.5% to 2% (depends on destination) when fully funded with bank account or PayPal balance. 3.4% to 3.9% if paying with a credit or debit card.
I've never used PayPal to send a payment to Europe, only to receive payments (in Euros so that there is no exchange rate involved).
From PayPal: Transferring money outside of the US - Small fee of 0.5% to 2% (depends on destination) when fully funded with bank account or PayPal balance. 3.4% to 3.9% if paying with a credit or debit card.
Nov 23rd, 2013, 08:54 AM
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>>My credit card charges 0% foreign transaction fee, plus the dollar to Euro exchange is almost identical to the rates I see in the financial papers & web sites. How is XE less than that?? <<
XE adds a small percentage to the exchange rate, plus a $22 wire transaction fee if you have the XE account set up to debit your bank account directly. Otherwise you'll have to pay the bank a $25 transaction fee just to access your money. The transfer usually takes three business days. The person receiving the wired funds pays nothing.
Using a credit card with no foreign transaction fee is the best way for you, but not the person on the other end who will be charged anywhere from 3.5% to more than 7%, depending on their bank. Using a credit card with no foreign transaction fees to pay a €5000 deposit would cost the proprietor from €175 to more than €350.
It's a good deal for you, but not so for the person on the other end unless they have already included the cost of the credit card fee into the price of the rental.
XE adds a small percentage to the exchange rate, plus a $22 wire transaction fee if you have the XE account set up to debit your bank account directly. Otherwise you'll have to pay the bank a $25 transaction fee just to access your money. The transfer usually takes three business days. The person receiving the wired funds pays nothing.
Using a credit card with no foreign transaction fee is the best way for you, but not the person on the other end who will be charged anywhere from 3.5% to more than 7%, depending on their bank. Using a credit card with no foreign transaction fees to pay a €5000 deposit would cost the proprietor from €175 to more than €350.
It's a good deal for you, but not so for the person on the other end unless they have already included the cost of the credit card fee into the price of the rental.
Nov 23rd, 2013, 09:12 AM
#8
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Thank you all for your experienced views. I opened a paypal acct tagging my credit card that charges 0% foreign transaction fee. Surprise! The owner picked up the paypal fee!
WeisserTee I will watch it carefully. Thanks for the alert.
Stu we will be using your itinerary throughout. Thanks
WeisserTee I will watch it carefully. Thanks for the alert.
Stu we will be using your itinerary throughout. Thanks
Nov 23rd, 2013, 10:08 AM
#9
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If the XE transfer is a wire transfer, there is a transaction fee, typically around $20 to $25. However, if the transfer is electronic (EFT), which is a choice, there is NO transaction fee.
Companies such as XE or HiFX make their money on their ability to execute transfers favorably within mid market rate margins (the current buy/sell spread). Each time I have computed the actual exchanged rate I paid with that of the mid market rate at the time the transaction was executed, my cost has always been within 1% of the mid market rate. Visa/Mastercard or Pulse/Maestro/Cirrus do the same thing adding 1% as a currency conversion fee.
For US bank customers, any fee such as a currency conversion fee or a foreign transaction fee must be line itemized on a credit card statement. ATM withdrawal fees are legally not required to be broken out on checking account statements and banks usually roll them into the stated exchange rate of each withdrawal transaction.
Stating that a credit card has 0% foreign transaction fees does not mean that there is not a currency conversion fee. There are cards such as PenFed and Capital One which have neither a currency conversion nor a foreign transaction fee but many, many cardholders will pay 2.7% as those do with American Express or 3% as those do who have cards with the well known national banks.
Thus, an EFT transfer using one of the companies I have mentioned, or another similar, will cost less than what most people pay to use their credit/ATM cards.
Companies such as XE or HiFX make their money on their ability to execute transfers favorably within mid market rate margins (the current buy/sell spread). Each time I have computed the actual exchanged rate I paid with that of the mid market rate at the time the transaction was executed, my cost has always been within 1% of the mid market rate. Visa/Mastercard or Pulse/Maestro/Cirrus do the same thing adding 1% as a currency conversion fee.
For US bank customers, any fee such as a currency conversion fee or a foreign transaction fee must be line itemized on a credit card statement. ATM withdrawal fees are legally not required to be broken out on checking account statements and banks usually roll them into the stated exchange rate of each withdrawal transaction.
Stating that a credit card has 0% foreign transaction fees does not mean that there is not a currency conversion fee. There are cards such as PenFed and Capital One which have neither a currency conversion nor a foreign transaction fee but many, many cardholders will pay 2.7% as those do with American Express or 3% as those do who have cards with the well known national banks.
Thus, an EFT transfer using one of the companies I have mentioned, or another similar, will cost less than what most people pay to use their credit/ATM cards.
Nov 23rd, 2013, 10:11 AM
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I don't like Paypal, either, but use it occasionally when there is no other option. What is interesting is that I tie it to a Discover card (which has no foreign transaction fee, but there aren't many foreign places you can use it anyway, except Caribbean), but can use it for payments in Europe. I've used it for an apt in Paris and an airport shuttle service in Paris, also. That was the only choice.
The problem with Paypal is they are intrusive and keep bugging you to tell them your bank account number under some nonsensical statement that this verifies you, as if your credit card shouldn't be good enough. I don't ever sell anything on there, they have no reason to need to know my bank acct. number. I refuse to give it to them, which works if you don't use it very often, if you use Paypal a lot, I think they won't let you not give them a bank acct number after a certain number of transactions per year.
I think Paypal would be cheaper than a wire transfer.
The problem with Paypal is they are intrusive and keep bugging you to tell them your bank account number under some nonsensical statement that this verifies you, as if your credit card shouldn't be good enough. I don't ever sell anything on there, they have no reason to need to know my bank acct. number. I refuse to give it to them, which works if you don't use it very often, if you use Paypal a lot, I think they won't let you not give them a bank acct number after a certain number of transactions per year.
I think Paypal would be cheaper than a wire transfer.
Nov 23rd, 2013, 10:38 AM
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For some reason I didn't think you could use a credit card to buy a money order. It's good to know you can, so thanks, Stu.
Christina, opening (yet) another bank account is a hassle, but I did open a free checking at my credit union that I used only to get PayPal off my back... keep a few bucks in there only and I never use it to pay with PayPal. Using a Discover Card with them is a good idea.
Christina, opening (yet) another bank account is a hassle, but I did open a free checking at my credit union that I used only to get PayPal off my back... keep a few bucks in there only and I never use it to pay with PayPal. Using a Discover Card with them is a good idea.
Nov 23rd, 2013, 12:44 PM
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>> use a credit card to buy a money order. It's good to know you can, so thanks, Stu.<<
I haven't done it yet - so there could be a "surprise". I have done it several times using cash instead of a CC.
Stu Dudley
I haven't done it yet - so there could be a "surprise". I have done it several times using cash instead of a CC.
Stu Dudley
Nov 23rd, 2013, 04:13 PM
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You can always go to your bank and ask for an international draft in euros, which will cost about $7.00, and mail it to the landlord or whomever. Easy and cheap. It may still cost the landlord a bit to have his/her bank accept the deposit (it shouldn't, as it's essentially a cashier's check in euros, but it might at some hanks).
Nov 23rd, 2013, 08:19 PM
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<i>international draft in euros</i>
But who does the conversion from dollars to euros, and at what rate?
I have used xe electronic transfers for any major bank to bank transfers. If I am paying a bill, I ask for the transfer to be done in euros. There is no charge at the other end.
But who does the conversion from dollars to euros, and at what rate?
I have used xe electronic transfers for any major bank to bank transfers. If I am paying a bill, I ask for the transfer to be done in euros. There is no charge at the other end.
Nov 23rd, 2013, 11:00 PM
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The websites gives you the various options:
http://www.lesterrassesdesoubeyran.c...et-conditions/
It is down to you do do teh maths. To use PP you do not have to set up an account, so I have been told. Personally I would just use the IBAN/BIC system of transfer. You have to obtain their bank details to do this. Using this system there is no sending them details of your CC. It is quick and safe.
http://www.lesterrassesdesoubeyran.c...et-conditions/
It is down to you do do teh maths. To use PP you do not have to set up an account, so I have been told. Personally I would just use the IBAN/BIC system of transfer. You have to obtain their bank details to do this. Using this system there is no sending them details of your CC. It is quick and safe.
Nov 24th, 2013, 12:13 AM
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We have used Paypal, International money transfers through our bank, bank drafts in the currency requested, and Mastercard. We have found Paypal good with the least fees [ for us anyway ]. IMTs have a fee from our bank and usually a fee at the other end which sometimes the owner accepts and sometimes they expect us to pay [ even though this is the payment method they requested ]. Bank drafts have a fee from our bank, and have not had feedback from owners on whether they have had to pay to bank the draft. Our m'card has an international transaction fee which we live with. We have found that it all works out much the same [ for us at least ] because the ones we pay by m'card [ eg gites de france ] also have a booking fee which is similar to the fee we pay for an IMT.
We have just finished booking our trip for 2014 and this time none of the owners had Paypal. All [ where we dealt with owners ] requested money transfers. The rest were through gites de france and paid by mastercard. We live with the fees. In the overall cost of the trip [ ours is for ten weeks ] the fees amount to a very small part.
We have just finished booking our trip for 2014 and this time none of the owners had Paypal. All [ where we dealt with owners ] requested money transfers. The rest were through gites de france and paid by mastercard. We live with the fees. In the overall cost of the trip [ ours is for ten weeks ] the fees amount to a very small part.
Nov 24th, 2013, 01:43 AM
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Many places don't accept PayPal because of the fees they have to pay on your transfer, which means they do not get the full amount of the deposit/payment.
When you do a bank transfer it is only fair that you pay the fees, which as rhon says in the overall cost of things are really quite small.
I avoid PP as much as I possibly can.
When you do a bank transfer it is only fair that you pay the fees, which as rhon says in the overall cost of things are really quite small.
I avoid PP as much as I possibly can.
Nov 25th, 2013, 06:36 AM
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As a former property manager in France, I can confirm that Paypal charges the owner/manager 4%. We accepted it because it was so easy for the user, and absorbed the fees. If you have an owner who will accept this, I would choose this option. Many people don't, however, because of the fees. And because it's not well known to French users.
