PayPal's exchange rate is TOO low... :(
By chuyins123
@chuyins123 (2112)
Philippines
July 11, 2011 7:48am CST
Hi I just received my payment for my online job. I'm glad it came on time. At least I could have something to spend on the 14th. My family's coming over.
I am thankful for the blessing though, I took note that PayPal is way too low in their conversion rate. Prevailing rate for USD to PHP is around 42.760 and guess what PayPal's exchange rate is 41.8999999 Wow! I can't believe it.
Have you guys ever noticed their rate? Good thing it's more than 7000 PHP so I won't have to pay them for any charges. Otherwise, I they could've earned from me twice. 
And now I am like an OFW who's so concerned with the prevailing exchange rate of USD to PHP. 
And now I am like an OFW who's so concerned with the prevailing exchange rate of USD to PHP.
1 person likes this
11 responses
@toniganzon (72279)
• Philippines
12 Jul 11
My friend, it's not only paypal's fault. It's the bank actually that arranges the exchange rate. What bank are you using? I have two, BPI and Union Bank. When i transfer my money to BPI the rate is higher nevertheless even if it's more than 7000php BPI charges an additional of 200php, so I don't transfer it there. Union Bank might be lower but then it doesn't have any charges at all. When i transfer i make sure it's always more than 7000.
1 person likes this
@chuyins123 (2112)
• Philippines
12 Jul 11
Hello my friend, I am using my Metrobank account. I used BDO before but they're the same with BPI, it charges additional Php200.00 but with Metrobank, it only charges around Php75.00.
I have a Unionbank Account, but I gave it to my mom, so that I could easily deposit money on the account without any charges. 
I might consider opening another account with Unionbank then to save some money on charges. Thanks for this my friend. 
I might consider opening another account with Unionbank then to save some money on charges. Thanks for this my friend. 
@AgentGulaman (3546)
• Philippines
12 Jul 11
Waaaaa!
BPI charges Php 200 for every transaction transfer with Paypal? What would I get with my $10 payout from myLot if I transfer it to my BPI account? Arrrghhh...I really need to accumlate first my earnings so that it won't be negligible when I transfer it. Now this sucks up all the excitement I have in getting my payout.
BPI charges Php 200 for every transaction transfer with Paypal? What would I get with my $10 payout from myLot if I transfer it to my BPI account? Arrrghhh...I really need to accumlate first my earnings so that it won't be negligible when I transfer it. Now this sucks up all the excitement I have in getting my payout.1 person likes this
@chuyins123 (2112)
• Philippines
12 Jul 11
Yes, just don't cash out if you only have $10.00 on your PayPal. Accumulate it to much higher amount like $100 or $200 for you to appreciate what you earn online.
@AgentGulaman (3546)
• Philippines
12 Jul 11
I have yet to receive my earnings via Paypal. It saddens me that the exchange rate is low. But what can we do, we use their service and their service gives us the convenience of getting and receiving our hard earned money online. Maybe I should start trying to accumulate my earning firs in Paypal so as not to get another of their fees. To be honest, I really don't have money in Paypal yet and I am only relying on myLot to put money in there. So I better stash them up there until the money is becomes quite a good sum already.
1 person likes this
@chuyins123 (2112)
• Philippines
12 Jul 11
Oh I see. Well yeah, the rate is really lower than the market rate by .50 or $1.00 so just so you know. Anyway, PayPal still have good service. So far for me.
@AgentGulaman (3546)
• Philippines
12 Jul 11
Oh! Thanks for the information. By the way, care to share that online job that you are doing? Is it open for all? I really want to look for a steady online job so that I have something to do on my free time. What kind of online job is that? I am interested to know. Thanks!
Thanks!1 person likes this
@nenyalorien (899)
• Philippines
11 Jul 11
Hi there. I honestly don't mind PayPal's rates because I figure that since their service is "Free," they should charge somewhere. If you compare PayPal to Western Union, the difference in the rates is VAST. Though, if your employer paid you in W.U., you'd be at an advantage. :p
Either way, nothing's really totally free on this earth. It's the price you pay for service. :p
1 person likes this
@nenyalorien (899)
• Philippines
11 Jul 11
Normally, before you withdraw the money, you'll know their current exchange rates. It's always $0.50 to $1.00 less than the market rates. If you want to maximize your pay, charge your client the transfer fees. On the site, it's 3.9% + $0.30. When I invoice, it's 3.9% + $0.50 because PayPal takes out around that amount talaga. :) Good luck to you and your endeavors!
1 person likes this
@chuyins123 (2112)
• Philippines
12 Jul 11
Oh, I'm afraid to charge a raise in the agreed upon rate with my client. Anyway, I guess I could live with it now. I just have to bear in mind the conversion rate is really lower. That way I won't be out of budget in my spending and projections. Thanks for the tips. I might try those with my upcoming clients GOD willing.
1 person likes this
@chuyins123 (2112)
• Philippines
11 Jul 11
You have a good point here nenyalorien. Thanks. Now I get to somehow appreciate more PayPal's service. Thanks for reminding. But atleast I am also aware of the rates, for better budgeting. Don't ya think?
But atleast I am also aware of the rates, for better budgeting. Don't ya think?
@youless (112123)
• Guangzhou, China
12 Jul 11
You are right. Lately I decided to withdraw the money in Paypal to my bank account and I found that the rate is very low. And therefore the money I will receive will be little than I expected. But there is no way. We have to follow Paypal's rule anyway. They need the money to run and therefore they try to make profits by any methods.
I love China
@chuyins123 (2112)
• Philippines
12 Jul 11
Yeah, they need the money to make some profits and continue to serve. At least now, we already know. And we'd be able to do properly our budgets. Aight?
I love Philippines!
@gerald_lian (2188)
• Australia
11 Jul 11
Yeah, like you I also noticed how low Paypal's exchange rate are. I normally earn money online with the currency as USD (eg. like on myLot), and then I convert it to my local currency, which is AUD (Australian dollar). There is not much difference between them and a money changer really 
, but I guess the reason why they are doing this is because they are a business and they need to make a bit of profit from these exchange rate so that they can sustain their business. That is why I hardly do any currency conversion unless I really have to.......
, but I guess the reason why they are doing this is because they are a business and they need to make a bit of profit from these exchange rate so that they can sustain their business. That is why I hardly do any currency conversion unless I really have to.......1 person likes this
@chuyins123 (2112)
• Philippines
11 Jul 11
Yeah, you might just be frustrated with the conversion rate. Well, I just came to note it, because I quite expected the money and already projected a budget. At least now, I am aware how much my USD worth in PESO because of PayPal conversion.
@gerald_lian (2188)
• Australia
11 Jul 11
I was a bit foolish in the past when I thought I'd earn some money over Paypal by manipulating the currency conversion rate. First I converted my AUD to USD, and then waited for the USD currency rate to skyrocket, then switch it back to AUD. I did all of that, and guess what? I still ended up with less money that the amount of AUD money I had when I first started......seems Paypal has "sucked" my money away....
@strawberrychocodahi (4818)
• Philippines
11 Jul 11
Never in my online earning experience did Paypal charge us lesser. By the time you withdraw an amount to your paypal, it is already with a fee. The exchange rate is the second thing and as expected, the rates will be lower. In this way, Paypal would also be earning on their part since they have been your online e-wallet buddy.
It is much more expensive if you transfer money through wire transfer because they charge even more. Just be thankful that Philippines is not yet asking taxes for your online income.
1 person likes this
@chuyins123 (2112)
• Philippines
12 Jul 11
the moment I realized that PayPal's exchange rate is way lower than the prevailing market exchange rate, I inquired from banks about wire transfers and they all said higher charges than that I would lose on PayPal. So I guess I should just stick and live with it.
You are right, we are lucky Philippine Government haven't had any taxation imposed on online earning, this way we get to enjoy almost the entire earning.
@allen0187 (58444)
• Philippines
15 Jul 11
hi chuyins.
yeah, the exchange rate of paypal is indeed low compared to the prevailing market rates. don't stress so much about it though, you'll eventually recoup those 'losses' so to speak. i don't withdraw funds from my paypal account and wait for it to reach a level when i can withdraw it without paying a fee both at paypal and my bank.
so far, it has worked and although it takes awhile for me to get my hard-earned cash, the wait is worth it.
@Bannybanzie (1397)
• Philippines
11 Jul 11
Hi!
I did not care that much about the exchange rate as I only use my paypal money to paying things in dollars too online.. But LOl.. Indeed, since we are earning dollar, we are worried about such things... 
@ravisivan (14079)
• India
11 Jul 11
True. Nowadays they deduct commission on crediting of US$ which was not done earlier or. For 40$ I got 38.18 or so. their exchange rate is less.
1 person likes this
@chuyins123 (2112)
• Philippines
11 Jul 11
Right it's really way lower than we got from money changer. Then again they have to get a small slice for processing and receiving our payments.
@soapies1973 (931)
• United States
11 Jul 11
I never understood how that would work for USD to something else. Thanks for letting me know. Hope it gets better for you.
1 person likes this
@chuyins123 (2112)
• Philippines
11 Jul 11
Yeah, I hope though USD will be stronger. lol. So that I would get more in PHP. haha Now I'm really talking like an OFW.
@edsss17 (4394)
• Philippines
11 Jul 11
You're not the only one who's worried my friend!
Its really too low.. good thing is my boss sends me my salary in Pesos.. So, I can receive my payment exactly as what we have talked!
Maybe you should tell your boss to send it on Pesos too so you can at least get the exact salary! :)
@speedytypist (572)
• United States
11 Jul 11
Hi Eds,
You have point and your boss is good enough to pay you in Pesos. Honestly, I don't any idea how the rating on paypal goes but its a good thing that I knew it from you guys. I just started earning online for a month now and I send my earnings to my hubby's paypal and withdraw on his bank since its free.
So, we need to reach 7000 pesos to be free of charge?
Good to catch you here.
God bless.
God bless.1 person likes this
@chuyins123 (2112)
• Philippines
11 Jul 11
Hi Edsss,
Oh, so you're earning is in Php eh? great for you. I can't do that to my employer as we agreed in terms of USD. Well, I guess I could live with it now, at least I am aware. I could also budget my money better.
Hi Speedtypist,
Yes, if you withdraw worth 7000 and up you can withdraw it free of PayPal charge, but you still have to pay for your banks' charges for receiving your money. That's like remittance fee. 
chuyins
chuyins