What’s Paypal up to this time?

Every time a get an email from Paypal, I start to wonder how much is it going to cost me in extra fees this time..

Few days ago, I received the dreaded email with the news:

We are making some changes to our User Agreement, Privacy Statement, and Combined Financial Services Guide and Product Disclosure Statement. These changes will go into effect on 28 March 2019.

Upon further reading I got to the section that does interest me the most.. the “how we convert currency;and”  followed by “when we will charge a currency conversion fee.”

So here is the section that has changed:

Version 18-4 up to 27 March 2019

18.11 When your payment is funded by a debit or credit card and requires a currency conversion, you consent to and authorise PayPal to convert the currency in place of your debit or credit card issuer. You have the right to have your card issuer perform the currency conversion and can choose this option during checkout on your transaction review page before you complete the transaction. If your card issuer converts the currency, you’ll be charged a rate set by them (shown on your statement), and you’ll be subject to any fees and terms set by them related to the conversion.

and the new “Improved” Version 19-1 valid from 28 March 2019

18.11 When your payment is funded by a debit or credit card and PayPal determines a currency conversion is necessary, you consent to and authorise PayPal to convert the currency in place of your debit or credit card issuer. In most cases, you may have the right to have your card issuer perform the currency conversion, if applicable for that card issuer and network. Currency preference selections may be presented to you in various forms, including a choice of which currency is used for the transaction, whether PayPal or your card issuer performs the conversion, or which conversion rate is used for the transaction, among others, and may be made available individually for each card and for each automatic payment agreement. If your card issuer convers the currency, your card issuer will determine the currency conversion rate and what fees they may charge.

I just highlighted the main change and in green you can also see that there was no proof reading before they printed out  :D

So at first it seem that Paypal decided that we DO NOT have the right to choose who perform the currency conversion any longer.

And as we all know Paypal do double dip with currency conversion as firstly they charge a lot more in their exchange and secondly they also slap a fee for the conversion hidden in the conversion itself..

18.10 If PayPal converts currency, it will be completed at the transaction exchange rate we set for the relevant currency exchange. The transaction exchange rate is adjusted regularly and includes a currency conversion fee (described below) applied and retained by us on a base exchange rate to form the rate applicable to your conversion. The base exchange rate is based on rates within the wholesale currency markets on the conversion day or the prior business day; or, if required by law or regulation, set at the relevant government reference rate(s).

For some uses of your PayPal account, PayPal may determine currency conversion is necessary. For any of the following transactions that involve a currency conversion in connection with your PayPal account, the currency conversion fee is 3.5% for converting to US Dollars or Canadian Dollars, and 4.0% for converting to all other currencies:

• Paying for goods or services in a currency other than the currency the goods or services are listed in.
• Sending money to a friend or family member such that they receive a different currency from the currency you pay in.
• Sending money using PayPal’s Payouts or MassPay products such that your recipients receive a different currency from the currency you pay in .

For all other PayPal transactions involving a currency conversion, the currency conversion fee is 2.5%.

All  this, just about when I was thinking of Paypal as an honest company…  :D

In the past two years the cost of buying or selling on-line has skyrocket.. Postage costs have going up, new taxes have being added or implemented and financial institutions keep adding fees for both parties..

This will lead to a disintegration of the on-line shopping as we know it. Is not a matter of if, but more of when!