Currency exchange feePayPal charges 2.5% regarding the deal value for almost any product priced and offered in a forex.

Currency exchange feePayPal charges 2.5% regarding the deal value for almost any product priced and offered in a forex.

2. Per PayPal; “Should your deal involves a money transformation, it shall be finished at a retail international
change price quoted to PayPal by a worldwide standard bank. this exchange rate features a 2.5% charge over the exchange that is wholesale at which PayPal obtains foreign exchange, together with cost is retained by PayPal. The particular trade price that applies to your numerous money deal is going to be shown during the time of the transaction”.

So what performs this suggest?

  • Fundamentally PayPal utilizes an industry forex price for transforming your deal money (in other words. Australian or dollars that are US to New Zealand Dollars, after which adds a charge of 2.5% of this transaction value for carrying this out. Therefore, anything you offer, you are going to lose 2.5% on foreign currency charges.

3. Bank Transfer fee$1.00 for amounts below NZ$150Free for amounts above NZ$150

4. Brand New Zealand Bank Deposit charge

  • As at March 2016, no brand brand New Zealand bank ended up being billing for inbound PayPal deposits, nor had intends to achieve this.
  • Distribution time ranged from same-day to up to 1 week.
  • Of this PayPal customers we spoke to, over 75% gotten funds in a single to two company times carrying out a withdraw demand.

Example:1. Item offered for AU$299.50, transacted back once again to New Zealand Dollars.Transaction cost: 3.9% = AU$11 (this really computes to 4.00per cent (two places that are decimal so we have actually PayPal for comment). Balance staying = AU$287.52

Foreign currency cost: 2.5% of AU$ = AU$7.18 (closest estimate) – PayPal claims to utilize the “most present trade price data”, using a 2.5% charge along with their “rate data”.

Bank Transfer cost: $0.00, given that stability is over the NZ$150 threshold at no cost transfers.

Total PayPal Fees = AU$11.98 + AU$7.18 =AU$19.16 and also as a % Fee = AU$19.16 / AU$299.50 = 6.4percent

Nevertheless, PayPal mixes into the currency exchange cost whenever you transfer the funds to your bank. The balance remaining in the PayPal account is to be paid into a New Zealand bank account as the receipt above illustrates. The full total is NZ$302.62


  • To produce feeling of the figures above, also to gain some viewpoint, we asked two brand New Zealand banking institutions, Kiwibank and Wesptac, just exactly how AU$ that is much 299.50 (in “cash”) means in New Zealand bucks. The responses had been very nearly identical – $308.73 (Kiwibank) and $308.64 (Wesptac) utilizing their online exchange tool that is foreign. This compares favourably to PayPal’s NZ$302.62 stability, considering bank card costs have already been included.
  • We conclude that for convenience, while 6.4% might appear high, the whole capability of PayPal overshadows the higher-than-expected deal margins.

PayPal Costs – Getting Cash from Overseas Company Transactions

The are four fees that arise with any international repayment into a PayPal account, once we outline below:

  1. Deal charge (for example. client pays you via your site)
  2. Foreign currency cost (in other words. money transformation from forex to New Zealand Dollars)
  3. Bank Transfer cost (for example. whenever you withdraw the funds from your own account that is payPal into New Zealand banking account)
  4. Brand New Zealand Bank Deposit charge (exactly what your bank fees you to definitely have the PayPal money into your account)

1. Transaction feePayPal costs a typical 3.9% per deal, along with a “fixed paid in the money received”. We result in the presumption that New PayPal that is zealand-based account would want to utilize the platform to “sell on site, through invoice or e-mail re payments overseas” and so this cost base relates. The fee that is”fixed regarding the money received” relates to the foreign currency charge outlined below.