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Paypal and currency

MalnaborgMalnaborg
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Hey all.

As a danish located shop in europe, i often get money in euros. And i have actually always just gotten paypal to exchange the euros to danish money.

But i have been thinking about if this is a good thing to do !? Is paypal charging higher % in exchange, and how would it actually work just in general with having more than 1 currency on my paypal account.

What is your experience with this ?

Comments

  • 8 Comments sorted by Votes Date Added
  • HoddieHoddie
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    Yes, PayPal screw you on the exchange. But if you only accept DKK, you may lose out on some sales. You'll need to weigh up which you prefer, a lower profit or fewer sales.
  • MalnaborgMalnaborg
    Vote Up0Vote Down
    Oh i want to accept "all kinds of currency" But for the most part, it is either euro or dkk.

    But i get the question if i want to make an "account" with euro, instead of exchange it.
    And i guess i with that, then pay out the euro to my own bank account, and that it will be my bank who makes the exchange to my local currency.

    Hence my question, if that is a better way to do it, or if i should just let paypal do the exchange?
  • HoddieHoddie
    Vote Up0Vote Down
    Sorry I missed that bit. It really comes down to whether or not your bank screws you less than PayPal does! In my experience PayPal's exchange rates are usually the worst by some distance, but check with your bank first, as some may charge an exchange rate and a flat fee.

    I once received an IBAN payment to my account - coincidentally enough in DKK - and it's still sat in my account as a balance in DKK some seven years later. To convert it to EUR so I can actually use it would cost more than the amount itself due to the flat fee.

    So I can only recommend that you check with your bank exactly what would happen if you received a payment in EUR. Will it automatically be converted to DKK? At what rate - central bank rate plus 1% or something else? Will there also be a fee? Or will it remain as a separate balance in EUR until you manually convert it?
  • MalnaborgMalnaborg
    Vote Up0Vote Down
    Exactly.

    Well good point actually to ask my bank first or check there and then compare :-)
  • paulvdbpaulvdb
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    I don't know how it works in Denmark, but as far as I know here in The Netherlands Paypal will only pay to your bank account in euros. So if you have a balance in another currency you'll have to convert it first before you can get it transferred to your bank account.

    The only reason to keep a balance in another currency is if you use it to pay other sellers who accept that currency.
  • MalnaborgMalnaborg
    Vote Up0Vote Down
    OH okay, well have not tried it yet.
    Maybe i should just leave it as is. Since i often use my paypal to pay for stuff, instead of my card :-)

    Or maybe just try it and see what happens, i can only imagine i can rework it, when the next payment comes from a costumer.
  • Gaston.La.BrickGaston.La.Brick
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    Yes, indeed as paulvdb says. Even when I would like to have PayPal send the money in my desired currency for my bank account, they will not and they will default to EURO.
    What I actually do: I keep a balance in other currencies, that I use to pay for orders that I put that are charged in a different currency. There is no charge when you use PayPal as a "bank".
  • Brickmania.huBrickmania.hu
    Vote Up0Vote Down
    Hi @Malnaborg

    I had the same problem in Hungary (but with HUF of course).
    I've discussed with Paypal help desk to solve this issue, but I've been informed that as a Hungarian I can take out my money only in HUF even with Euro account at my bank. My belgian transferwise account was also declined by them. So I need to live with this loss ...
    Anyway if you get any other feedback or you find a solution to get Euro directly then please let me know :)
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