Quick mini-post on Paypal

A reader asked me about the currency exchange rates I mentioned 2 posts down. I'm assuming she was asking about the Paypal exchange rates...

could you tell me more about the rates? I'm clueless and I make so much purchases online.
-jane

I don't actually know that much about it either...haha. What you should remember though is that XE.com's live rates won't give you an accurate estimation of what you have to pay. Paypal uses their own rate plus an additional 2.5% on top of that:

** 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.
(taken from Paypal's website)


Basically you will get charged an extra 2.5% above whatever exchange rate Paypal is using. Not sure where their rates come from, I do know it does get adjusted every now and then but it won't fluctuate as quickly as XE.com's live rates. You can get an idea though if you pretend to checkout, Paypal will show you the current rate they are using, just don't click the confirm button yet!

Sorry I would blog more but I have to sleep...I promise to post on the Nars Jolie Poupee duo and Clarisonic when I return though!