Quote:
Originally Posted by Tandum
I've found if you pay with paypal, you not only get a better exchange rate than the credit card but there is no fee. They bill the CC in $AU.
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I disagree in that you always get a better exchange rate. Occassionally it comes close to Mastercard and Visa but I have never seen Paypal beat both credit cards. This morning, Mastercard was 1.0035 and Paypal was 0.978 (2.55% difference - Lose 2% by Mastercard fees and you're 0.55% better with Mastercard). RBA advise official rate was 1.0135
I originally thought that Paypal would have a better "end" deal because you are quite correct in that you are charged only for the price in $AU dollars (but converted from US by Paypal). But I have since found Paypal are approximately 0.5% to 1% net dearer consistently.
I have also found that they have a raft of limitations such as maximum payment in a certain time and if you try depositing money in to your paypal account, watch out if it goes over $1000. You have to provide a 4 point ID check due to new anti-laundering laws and Paypal will take 3 to 4 days to verify your ID. In simple, a pain for the first time but at least security is of prime concern to them.
However, Paypal offer consumer protection etc which is a form of insurance. Bottom line is it pays to know what you're getting into and choose to your risk appetite.
Cheers,
Darrin...