Patrick

I've only used PayPal once, for buying something on Ebay. But I'm seeing it mentioned more and more by European apartment owners as a way of making a deposit in Euro. Does it work like you normal credit card charge would in Europe? In other words, if your card charges a Visa 1% either with or without an extra percent, is that all you'll be charged by PalPal? Or do they set their own exchange rate?

adoptionisfab

Patrick,
I have not used Paypal for an apt but you can also set up an account that hits your checking account not a credit card.

Patrick

OK, I wasn't aware of that. But that makes my question even more important. If your payment is tied to your checking account, what kind of exchange rate do they use?

nytraveler

Have done euro Paypal - and the answer is not transparent - they just charge you an amount - no rates shown. But I did it with a CC and got a charge only about 3% higher than interbank rate total - not sure who got what part of it.

Robespierre

I ran the xe.com calculator for an eBay purchase I made in England, and it says the markup was 2.577%.

Intrepid1

Patrick: this is from Paypal's site...
If your transaction involves a currency conversion, it will be completed at a retail foreign exchange rate determined by PayPal, which is adjusted regularly based on market conditions. This exchange rate includes a 2.5% spread above the wholesale exchange rate at which PayPal obtains foreign currency, and the spread is retained by PayPal. The specific exchange rate that applies to your multiple currency transaction <b>will be displayed at the time of the transaction</b>. {emphasis is mine}.

Dave_in_Paris

Right on Intrepid. The Pay Pal rate is not very attractive. But the alternatives for paying an apartment deposit aren't very attractive, either.

Kristina

Last March I paid a deposit via Paypal for an apartemnt rental in Paris. Initially, I thought this was a great deal because of the steep fees charged by my bank for a &quot;wire transfer&quot; (about $30 per).
However, we had to have our deposit refunded and I learned the hard way that paypals fees are steep too. My money came back 2 days later, minus $30 in transaction fees.
So, it seems to be all about the same.

Patrick

Thanks for all the information. Yes, Intrepid, I do remember reading that line from PayPal's site and like some other &quot;cloudy&quot; policy information, I laugh at what it says.
When a company sets their own rate and says it &quot;includes&quot; a certain percent -- what does that mean? They could set their rate at 45% and it would include that 2.5% spread! I prefer statements that say something like &quot;not to exceed____%&quot;. But at least from several posts of personal experience I see it looks to be about the same as most other methods.

Robespierre

Here's a verbatim quote from xetrade.com:

&quot;We <b>never</b> charge any commissions or transaction fees. And our <b>best rate guarantee</b> means that you can trade in confidence, knowing that you're <b>saving money</b>.&quot;

Intrepid1

Just trying to be helpful but I can see that I need to stick to other less compicated subjects.

Patrick

Gee, Intrepid, I hope you didn't take my comment about your post in a negative way. I realize my original post makes it look like I hadn't checked out what the site says. Just pointing out that &quot;includes&quot; doesn't really tell much about the end result. I appreciate you attempt to help.

And now, Robespierre, a question about xetrade.com. Does the person in Europe I'm paying to have to register or provide me his bank account? If they are suggesting PayPal, I assume it is because they are set up for it. I'm not sure if they will readily take the steps to allow xetrade.com, but I have no way of knowing that. Experience has taught me that most European apartment owners have a certain way of doing things, and asking them to provide their bank account information when they have not suggested that method themselves may not be a working solution. But I could easily be wrong.

Robespierre

I'd ask the landlord for the two numbers printed on his checks: the Routing/Transit number and the account number. It's not as if they're a State Secret, after all - he discloses them to everyone he pays with a check.

Tell the landlord you'd prefer to use a direct transfer because it will save you money.

&quot;Ya don't ask, ya don't get.&quot; The worst that can happen is that he'll say &quot;no.&quot;

Rich

Patrick . . I just completed a PayPal transaction in &pound; last week and the effective rate was $1.876 when the interbank rate was $1.81

Rich

Lovejoy

I too need to send some &pound;'s to the UK using PayPal.Can anyone else clarify the total costs of doing so?
Are there any more fees involved other than PayPals spread over the interbank rate?

willit

I have used PayPal from UK to European accounts as deposits for apartments, and it has worked out cheaper than a bank draft or transfer.
Were I paying the whole amount of a Rental, I may reconsider, but If I am only paying &euro;100 or so, the 5% extra still works out a great deal cheaper than any other way of paying.

Lovejoy

TTT as post was lost in Fodors Neverland.

Patrick

Robespierre, I'm not sure that I'd agree that doing a direct transfer will save money. Bank of America told me there is a flat charge of $35 to do so. That's in addition to any costs of what is considered &quot;current&quot; exchange rate. If only paying $100 deposit, that's at least 35%!!!!

Robespierre

I didn't mean a bank-to-bank wire transfer. I was thinking of a service like xe.com/fx offers. Interbank rate and no fees.

Christina

they are a business and could not stay in business doing everything for free.

They do have fees for wire transfers, they say so on their web site. They just say they charge less than many banks. You also have to wire the funds from your bank to xe.com, and I suppose they would cost you, also, wouldn't it? I don't think I&quot;ve done it myself. They also say they have no &quot;commissions or fees&quot; but admit they make some money on the markup in rates (what they call the &quot;spread&quot. They'd have to or they couldn't be in business.