http://imgur.com/a/9kAm7
So, as you can see ^^ Something doesn't add up. ;)
It's almost like exchange rates fluctuate, like they depend on the countries involved, like pretty much every company out there has their own exchange fees and exchange rates tuned to give them an advantage, and like Google isn't an official source of exchange rates everyone has to follow... who would have known.
2spooky4me
The problem is with how Paymentwall really works.
Paymentwall isn't technically a "transaction" website; it's not like Amazon where you buy stuff and etc. Think of it as a much terrible version of PayPal that has lower security level. So, you are basically "sending the money" through their banks/systems.
On PayPal how money transfer works is, if you are sending 150$ to someone, they will take few percentage off it and the receiver will not receive the full payment. HOWEVER, on Paymentwall, if you say you are sending 150$, they will take EXTRA OFF YOUR CARD to ensure that the receiver will receive the full payment. Great for the payment-receiver, s*** for those sending money.
The "extra" is 5% as I believe for non-US countries. What is really scumbag of them is that they do not say this on the transaction page exclusively. They put it somewhere on their websites and expect people to be aware of it. Also, Obnoxious is wrong about "Google isn't an official source of exchange rates." When the money is transferred/converted, it must follow the real-time FX rate conversion; it does not have to do with Paymentwall or Google, it has to do with your card company. They will receive the request asking for 40 Euro, they will go through real-time FX rate and convert into local currency and USD and charge it off your card.
Also, AFAIK, Google's algorithm does match up with real-time FX rates very accurately.
Go see PayPal's conversion rate and check how much it differs from Google's, then come say I'm wrong. And that's just one example.
It is calculated after taking off their profit. Check out Currency Conversion section on TOS.Quote:
Originally Posted by Obnoxious
Adding : Google's Currency Conversion is done without anyone taking profit, while Paypal's is. Problem with Paymentwall being, if I were to do any transactions even without currency conversion, they will take off 5% from the payment FROM your credit card not from the total payment.
Wrong again. They even show you their conversion rate values, which is different from Google's.
They add their fee on top of it, which is explicit in the receipt.
"The exchange rate includes a processing Fee expressed as a percentage above the wholesale exchange rate at which PayPal obtains foreign currency, and the processing fee is retained by PayPal."Quote:
Originally Posted by Obnoxious
https://www.paypal.com/kr/webapps/mp...agreement-full
I was thinking for awhile after reading what Obnoxious said.
I am no economics major, only computer engineer and this is what I think is happening.
- Warmane accepts Euros and specified it on Paymentwall.
- Paymentwall, like Paypal will take x% off the actual payment for profit during currency conversion.
- You are Canadian and Paymentwall is like "eey, u CAD? We will charge you 5% extra for our service. We transferred your CAD to Euro so."
That's how you were charged 2$ more from 40$ payment. So, Obnoxious and I are both right. I don't know what the f*** we were disagreeing on. We are basically saying the same thing.
And what Paypal does is it won't charge you extra, but it will take off the actual payment that the receiver will get. So you transfer 40$ to Euros to someone, they will take +x% for currency conversion and +x% for transferring money and receiver will receive only, let's say 35$. But on Paymentwall, Warmane is requesting our payment; so we are the one to be charged extra to ensure that Warmane gets 40$ at the end, not 35$; that's why we are being charged extra.
Hopefully this makes sense. It does in my brain.
In the end of the day, it's not Warmane's fault. They just want to receive full 40$ not 35$. Would be nice if it were disclosed very openly somewhere on Donation page, but honestly, it is Paymentwall.
There is a very easy way of avoiding this; use Subway, CVS card. You can do your own conversion using Google; no need for "ehe, I am converting ur money to another money so I take ur moni hehe".
1. I have Euros in my PayPal, but deal with sending payments in other currencies all the time. Not only you get an exchange rate that doesn't matches an "official" one like Google, the receiver also gets a slice taken out of it as a service fee;Quote:
Originally Posted by Zelda1220
2. Which makes what you're saying further laughable, you're only trying to desperately argue semantics to "feel right." If I'm saying "while Google says 1 Dollar = 1 Euro, PayPal has its own exchange rate that will say it's = 0,94 Euro," you saying "oh noes, PayPal has the same exchange rate as Google, but charges a fee that makes it so 1 Dollar = 0,94 Euro"... you're just playing with words to not admit that PayPal effectively has its own exchange rate, which is less than Google's, no matter if they claim it's caused by fees or whatever.
1.) Google's currency converter has 3 minutes delay from the global official financial information. It's safe to say it is real-time. And the official source gets updated once every 3 minutes.
2.) Paypal currency convert 1 USD equals 0.91 Euro, SIX Global Official Financial Information (Google's converter's source and global market trading's soruce) 1 USD being traded at 0.94 Euro. I did not make it up, it legit says it on Paypal TOS. I am not sure why you think I am "playing with words". That's what Paypal says, and that's what I am telling you. (That the currency conversion rate had already been affected by the fees that they are taking off for converting your currency to another one.) The currency conversion rate you see on converter has already been affected by the fee. They take 2.5% fee for US. 0.94 * 2.5 = 2.35, making sense.
What you said was ; "Google isn't the official guideline of exchange rate to follow; it is theirs that you are following."
and I corrected by saying ; "It actually kind of is; they are just taking fees and the exchange rate they use has been affected by it already. And in case of Paymentwall, to ensure that the receiver takes the full payment, the sender of the payment has to pay for this conversion fees/fees for their services; which is how OP ended up with +2$ charged extra."
For another example about conversion;
1 GBP is being traded at 1.19 Euro on the market, but if you use it through Paypal to convert and send money to someone else, it will be 1 GBP to 1.16 Euro. They take 2.5% fee for United Kingdom, making it 2.5% of 1.19 a 0.02975. 1.19 - 0.03 (rounded up) = 1.16 Euro.
1. Something "official" that doesn't has to be followed isn't official.
2. More semantics.