Save Money When Using Paypal!

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Paypal has made it possible for millions of people worldwide to trade on ebay to every corner of the globe. The question is "Are you losing money though using Paypal"?  How would you know!


I have been an ebayer since 2000. I  have made many transactions worldwide, and Paypal has been a blessing for all my sales overseas. The ability to pay for something and not be charged huge fees and commissions. Wonderful! Then something didn't seem right so I started checking and rechecking until I found out how on some transactions I would lose quite a deal from one sale. This was not a fault on Paypal or ebay's behalf. Not at all! It was just a standard procedure that was followed during the transaction process

. I hope the next part of this guide will help the many Australian ebayers trading  on the Internet save some money!

The following example will demonstrate a standard International transaction. The seller will reside in Australia and the buyer in the USA

  • Harmonica Pouch Belt Holder Hohner Lee Oskar
  • Location Melbourne Australia
  • Buy It Now AUD$6.95
  • Buyer from United States  
  • Paypal money request sent.
  • Buyer pays AUD$6.95 to seller.
  • Goods despatched.

Now the next part of the Paypal transaction is as follows.

  • Item was paid in Australian Dollars. AUD$6.95
  • Paypal converts this for each account into US Dollars
  • AUD$6.95 converts to USD$5.17 Conversion done via 

Paypal uses US dollars for all their accounts and then converts the US Dollars into the currency of the country. That's the only way they can handle worldwide transactions at the moment. You are now saying well what's the problem?. Well the problem arises from the conversions and this example will show you why.

  • Paypal balance of USD$5.17 converted using for deposit into my Australian bank account comes to AUD$6.52.

I have lost 43cents on that one transaction not including Paypal fees.

Can you imagine if you had a sale worth many hundreds of dollars!

Here's the way to process the sale without losing money.

  • Item is worth AUD$6.95
  • Using Travelex to convert USD into AUD$6.95 the amount is USD$5.51.
  • That way you can send a money request for USD rather than AUD.

Just so you know the buyer isn't paying more for these sales, they are paying the correct amount.

 Australian buyers actually save money through the normal conversion  process. If an Australian buyer uses Paypal the conversion is the same as described above and when the amount is shown on a credit card statement if there were no funds in their Paypal account it will be the reduced amount. If they pay in USD which then convert into AUD the amount is nearly everytime the correct one.

In summary these faults are not the doing of ebay or Paypal, they are a fault of converting money too many times and into different currencies. I suggest you trial both methods and see for yourself.

I hope I have helped many Australian ebayers in saving money in the future years of trading on ebay.


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