upriver
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posted on October 28, 2002 08:36:42 AM
Two identical eBay transactions, one processed through Billpoint, one through Paypal, both processed on October 22nd.
BILLPOINT:
Transaction amount $22.25
Billpoint fee of 3.3% deducted of 74 cents
Bank account deposit fee deducted of 11 cents
Funds deposited exchange rate of 1.5454%
TOTAL TO MY ACCOUNT: U.S. 21.40/CDN 33.07
GRAND TOTAL PERCENTAGE CHARGED: 3.8%
PAYPAL:
Transaction amount $22.25
Paypal fee of 2.9% + 30 cents deducted of 94 cents
Bank account deposit fee deducted of 85 cents
Funds deposited exchange rate of 1.51913% (I do believe Paypal is shorting us on the exchange rate so they can pocket the difference)
TOTAL TO MY ACCOUNT: U.S. 20.46/CDN 31.08
GRAND TOTAL PERCENTAGE CHARGED: 8.0%
Need I say more?
What a rip-off!
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koto1
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posted on October 28, 2002 08:53:22 AM
Wow...that's pretty blatant! I guess the only thing to do would be to not use PayPal, even though you would have to weigh that against how much business would be potentially lost.
"Who's tending the bar?  Sniping works up a thirst"
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tooltimes
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posted on October 28, 2002 09:03:57 AM
Ebay will phase out BillPoint soon. Then you will truly be 'up the river' ( without a paddle ).
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uaru
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posted on October 28, 2002 09:19:21 AM
Stop accepting PayPal till they accept CDN.
Get a bank account in the US.
Shouldn't there have been a 35 cent fee associated with the BillPoint transaction?
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capotasto
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posted on October 28, 2002 02:26:33 PM
So what will you do when billpoint bites the dust?
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horsey88
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posted on October 28, 2002 04:06:42 PM
Exact same thing happened to me. Used my PP debit card and another Bank's debit card minutes apart. Paypal's rate was 2+% points lower than the other bank.
Obviously I wouldn't be using that PP card for foreign transactions again.
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Libra63
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posted on October 28, 2002 04:17:17 PM
upriver-I have a suggestion for you. Why don't you cut and paste your question down in the PayPal area of auctionwatch and see what Damon has to say if anything. I find this rather disturbing as the rate of exchange should be the same in each transaction.
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classicrock000
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posted on October 28, 2002 04:50:17 PM
I know what damon will say--canadians suck-they deserve to get shafted--ha-ha
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tooltimes
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posted on October 28, 2002 09:57:50 PM
Why don't you cut and paste your question down in the PayPal area of auctionwatch and see what Damon has to say if anything
Where's that area?
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upriver
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posted on October 28, 2002 10:49:25 PM
It's in the Partner Services area of the discussion boards.
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tooltimes
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posted on October 28, 2002 11:09:46 PM
Thanks, I didn't realize those two forums broke down into sub forums.
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thchaser200
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posted on October 29, 2002 04:12:43 AM
I am sure that damon will give you the old cut and paste answer
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askdaruma
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posted on October 29, 2002 06:11:13 AM
wells fargo versus providian bank??
the exchange rate difference may have to do with the merchant account provider,one uses wells fargo and the other providian bank.
wells fargo is bigger,better and more intl in scope.
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upriver
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posted on October 29, 2002 06:53:39 AM
I think the exchange rate simply has more to do with Paypal: As they say...quote...we "offer" a competitive exchange rate.
Which in my opinion is b.s., they are shorting it by 2% over just about any other service apparently, and quietly pocketing the profits -- a cagey way to increase fees!
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askdaruma
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posted on October 29, 2002 07:19:33 AM
it is not possible to expect company A to match competitor on every product or service it offers,each company has it own cost structure and rationale for pricing their services or products.
in retail,you see loss leaders to get the customers in ,take example,thanksgiving is coming ,so get your free turkey or cheap turkey but load up on all the trimmings,how much does it cost to bake a pumpkin pie or rolls or cranberry sauce??
there may be something paypal offer which is cheaper,better than billpoint or c2it ?
or vice versa.
you can ask paypal if they pad the rate,if they do,and you dont like it,use another service.
your local bank may offer you a merchant account to accept us cc transactions and convert them to canadian dollars for you at a better rate.
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islanddiecast
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posted on October 29, 2002 05:26:19 PM
I would recommend you set up an account at a bank in the States.
The Royal has Centura. You can set up an account by phone. Then write checks on it to deposit the funds in Canada. You can also use it for paying Ebay and Auctionwatch.
Paypal does not charge to transfer money to an American Bank and it also only takes a couple of days.
Eliminate as much exchange from one currency to another as possible. The banks and Paypal are rich enough.
As Billpoint will no longer be with us you must get your Paypal account to be as efficient as possible.
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drjackk
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posted on October 29, 2002 09:50:22 PM
Paypal has/is a rip off. I had them for one week. Due to thier screw up, I could never access my account nor was I ever able to. I did not lose a penny because I was wary and refused to ship until paid.
I have used bidpay for 2+ years with a 100% success. I do not ship until the check arrives, which it does in a few days. Yes it cost your buyer money, but there is no "charge backs" or frozen accounts or all the other things paypal does to sellers. You get your check by mail and fast!
Don
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uaru
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posted on October 30, 2002 05:01:18 AM
I would recommend you set up an account at a bank in the States.
Actually if a Canadian uses some business sense and takes advantage of the option of depositing to a US bank then PayPal is cheaper for them than a US seller.
A US seller pays a rate of (3.2% + $0.30) or (3.9% + $0.30) to receive payments from a Canadian buyer.
A Canadian seller pays a rate of (2.2% + $0.30) or (2.9% + $0.30) to receive payments from a US buyer.
All a Canadian seller need do is get a US bank account and his rates are (2.2% + $0.30) or (2.9% + $0.30) to anyone in North America, no deposit fees, no exchange rate losses. With BillPoint Canadian sellers paid international rates if they accepted payments from a US buyer or a Canadian buyer. BillPoint doesn't/didn't offer the option of the Canadian seller having a US bank account to avoid the exchange rate losses either.
You can light a match, or curse the darkness.
US Buyer ------> Canadian Seller are the only transactions where international fees are waived. (not everyone knows that)
[ edited by uaru on Oct 30, 2002 05:08 AM ]
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askdaruma
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posted on October 30, 2002 05:08:58 AM
at some point,if he wants to expatriate the us fund from us bank account home to his canadian bank account,he will incur some fee.
doing business across the borders do incur additional fee,thats why local competitors have an advantage over foreign sellers.
given the weak canadian dollars,i would not complain much of that 2%,a small price to pay for being able to earn us dollars without all that overhead of storefront and advertising.
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