Question
Hopefully this is in the right forum as I guess it could apply to eBay and/or websites too.
How do you handle the conversion rate for international payments using Australian, Euros, Canadian monies?
Meaning...I know paypal converts (and charges a fee) but there can be a large loss when converting the above payments to US dollars.
For instance...I sold something for 39.99 US to a Canadian buyer.
In order to equal my selling price they would have to send 46.05 Canadian. (forget the 1% Paypal conversion fee charged and the item fee).
I also see that if you "request money" through PPal you must accept it in the currency checked. IF one has the buyer initiate payment this wouldn't happen but the buyer would have to be told their currency amount to send to equal one's US dollar amount.
Before I confuse this anymore in my left-handed backward way...
How do you handle this? (whether by auction or website?)
TIA
Answer
I handle it by usually shipping to U.S. only.
Answer
LOL...that's what auction stated.
This was after...off auction...and the guy begged to be able to buy it. Tried to convince him otherwise...heavy coat, just over 6pounds...$20. to Canada plus price for the ROCA coat.
Told him I wasn't going to lose that much on conversion. He didn't care...so he initiated payment by eCheck. Amount sent is equal to what it was supposed to be in US dollars.
Just never did this before...was wondering how others handle it (besides not selling internationally )
Answer
I'm confused. If you are the seller and the auction is in U.S. dollars, you receive U.S. dollars through PayPal. The conversion fee is not your problem - it's they buyer that has to pay the cost. The buyer tells PayPal to pay the U.S. dollar amount in your eBay invoice. PayPal automatically calculates how much to take from the buyer's account if it's in a different currency, in order for the seller to receive the correct amount of U.S. dollars, as shown in the invoice.
I've won both euro and pound sterling auctions and that's the way it works. My U.S. dollar PayPal account has been debited for the amount needed to pay the correct euro and pound sterling amounts.
Answer
Thank you Irene
I seem to be having a brain burp.
In reading through the PPal site I came across "multiple currencies" and seem to have that confused(?) with the conversion rate. I was looking at this:
PayPal charges Premier and Business accounts to receive payments. Personal accounts are free, but may not receive debit or credit card payments.
Personal Account Premier/Business Account
Open an Account Free Free
Send Money Free Free
Withdraw Funds Free for bank accounts in the US
Fees for other banks Free for bank accounts in the US
Fees for other banks
Add Funds Free Free
Receive Funds Free 1.9% to 2.9% + $0.30 USD
Multiple Currency Transactions Exchange rate includes a 2.5% fee* Exchange rate includes a 2.5% fee*
* 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 will be displayed at the time of the transaction. View Currency Converter
Been selling for years and it just gets more confusing (or is it I'm just getting older?)
No wonder shipping has gone up...covers all these fees. I'm one that ships at exact...allow me to kick myself!
Answer
Originally Posted by Red883
How do you handle the conversion rate for international payments using Australian, Euros, Canadian monies?
What's to handle? You list/sell it in US funds and buyers in other countries pay in US funds. They worry about the conversion, if any, not you the seller. If I want to buy on a website that is based in England then I the buyer would be expecting to pay in that country's currency - I wouldn't be expecting the seller/store to be converting it into my currency.
Recently at work we had to order book from New Zealand. I charged it to my work credit card and the company charged the total in their currency to my card and the card company converted it.