GoFuckYourself.com - Adult Webmaster Forum - View Single Post - Paxum exchange rate USD/EUR.. a little shitty?

Adraco · 12-03-2012, 05:35 AM

Same with Paypal and any other online service like that.

Usually they do not do their own currency trading, but get their rates from a banking partner. And with that, they have to make sure they themselves do not get cooked on the deal, so there will be a "margin of error" of usually around 2% which will compensate them if the exchange rate would differ from that point where you did the exchange till the moment they are actually doing it with their bank.

Just check Paypal's agreement, they even take out a special currency conversion fee. Your local bank will in 99% of all the cases take a fixed fee and then give you an exchange rate which is much closer to the "real one" at that moment. SO the bank gets paid for doing the transaction with their fixed fee, since online payment systems like Paxum and Paypal usually handle much lower sums than your local bank, they give you the chance to exchange currency without the fixed fee but make up for it with a percentage fee coming off as a little worse exchange rate.

Either way, you are using a service and should pay for it either way. Exchanging money isn't free, there is a cost involved. Be smart and only move larger sums, and with that pay the fixed fees at your bank, that will lower the percentage cut form your total.

12-03-2012, 05:35 AM
Adraco Confirmed User Industry Role: Join Date: May 2009 Location: Onboard an airplane around the globe Posts: 3,735	Same with Paypal and any other online service like that. Usually they do not do their own currency trading, but get their rates from a banking partner. And with that, they have to make sure they themselves do not get cooked on the deal, so there will be a "margin of error" of usually around 2% which will compensate them if the exchange rate would differ from that point where you did the exchange till the moment they are actually doing it with their bank. Just check Paypal's agreement, they even take out a special currency conversion fee. Your local bank will in 99% of all the cases take a fixed fee and then give you an exchange rate which is much closer to the "real one" at that moment. SO the bank gets paid for doing the transaction with their fixed fee, since online payment systems like Paxum and Paypal usually handle much lower sums than your local bank, they give you the chance to exchange currency without the fixed fee but make up for it with a percentage fee coming off as a little worse exchange rate. Either way, you are using a service and should pay for it either way. Exchanging money isn't free, there is a cost involved. Be smart and only move larger sums, and with that pay the fixed fees at your bank, that will lower the percentage cut form your total. __________________ ---------------------------------------------------------------------------------- The truth is not affected by the beliefs, or doubts, of the majority.