Why are my USD Mastercard payments converted to GBP on USD paypal purchases?

I just try to buy some stuff on eBay using my USD GoldMoney MC. The items were priced in USD and shipped from USA. eBay of course took me to PayPal to check out, which is linked to my GM MC. But, it wanted to convert my payment to GBP for some reason.

Now if I was buying from the UK (which I have done) an item priced in GBP, that'd be fine. No problem. In fact, I later ordered a GBP MasterCard from GM to handle this.

But now I am trying to buy in USD with a USD card (yes, I'm certain, I've never ever used the GBP card as yet), but PayPal is converting the payment to GBP. Why? Is this due to some corporate set up GM is using? Is it another PayPal racket to gouge users on exchange rates? I don't have this problem on Amazon.

Has anyone else experienced this?

Thanks for your consideration.

Thorny

Comments

  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @thorny

    I vote for "another PayPal racket to gouge users on exchange rate", but I truly have no idea. My response is in sympathy.
  • thornythorny Posts: 38 Tin ✭
    I wouldn't be surprised, but I never had that problem with other cards.
  • paddy10tellyspaddy10tellys Posts: 248 Bronze ✭✭✭
  • MelanieMelanie Posts: 1,045 Gold ✭✭✭✭✭
    @thorny The cards are issued in Britain, so some card processors inexplicably decide to incorrectly categorize them as GBP-denominated cards and charge the card as such. This is quite rare, though it seems to happen on Paypal more than anywhere else. Unfortunately there is nothing we can do on our end as it their processor that is choosing to charge in this way.
  • Skookum_JimSkookum_Jim Posts: 124 Bronze ✭✭✭
    @thorny A little bit of info i found somewhere on the net that helps us dodge "another PayPal racket to gouge users on exchange rate":

    Log in to paypal -> press the "settings wheel" -> payments -> My preapproved
    > > payments -> See Available Funding Sources (or Set Available Funding
    > > Sources) -> Conversion Options (for card you'd like to change this
    > > option)-> Bill me in the currency listed on the seller's invoice ->
    > > Submit -> save

    This you may have to do several times if you have more than one card registered with paypal.
  • thornythorny Posts: 38 Tin ✭
    @Melanie Thanks. That is exactly what I was wondering. How do I mark this "answered"?

    @Skookum_Jim Thanks for the tip. I'll look into that. If it doesn't work, eBay and PayPal will lose my business.
  • thornythorny Posts: 38 Tin ✭

    @thorny A little bit of info i found somewhere on the net that helps us dodge "another PayPal racket to gouge users on exchange rate":

    Log in to paypal -> press the "settings wheel" -> payments -> My preapproved
    > > payments -> See Available Funding Sources (or Set Available Funding
    > > Sources) -> Conversion Options (for card you'd like to change this
    > > option)-> Bill me in the currency listed on the seller's invoice ->
    > > Submit -> save

    This you may have to do several times if you have more than one card registered with paypal.

    This method must be old. It no longer works on the current site and is probably something to do with the "PayPal Classic" no longer being available along with its numerous useful features. Time to find another way to pay on eBay I guess, or stop using it altogether. I have tried to get back to the classic site, browsed and read the forum, and none of the methods there work any longer.
  • thornythorny Posts: 38 Tin ✭
    UPDATE: Just got this in an email from PayPal support:

    "B: When making a payment, how do I select my card issuer’s conversion rate?

    At the time of making a payment, you can choose to use a conversion rate provided by either PayPal or your card issuer.

    Here’s how to select your card issuer’s conversion rate for a payment:

    1. On the "Payment overview" page, click Other Conversion Options under "Payment Method."
    2. Choose "Bill me in the currency listed."
    3. Click Submit.

    If you choose this option, we won't be able to show you the conversion rate at the time of making your payment. We'll charge your card in the currency you pay to the merchant, and the amount will display in that currency on your card statement. You'll also need to contact your card issuer directly for any questions related to the currency conversion.

    Note: If you use Visa, American Express or a China Union Pay card, you can only use your card issuer's conversion rate; If you use Discover card, you can use PayPal's conversion rate only."

    Will not be able to test it until I use PayPal again, and I have no idea when that will be. If anyone is game, pls let us know in the forum here.
  • Skookum_JimSkookum_Jim Posts: 124 Bronze ✭✭✭
    This is the sort of stuff that can sink good businesses, it's strange that paypal keeps doing it?

    Anyhow i had to try using quick checkout buying some small tidbit, here's how i finally managed to dodge paypals scamming:

    Selected pay with paypal.
    Under exchange rate i pressed "change" then i pressed the blue highlighted exchange rate. This in turn showed a pop-up, within the pop-up there was the option "view exchange rate options", i pressed that and a new window came up with paypal options and there, finally i could change it to: "your card issuers rate"

    I claim this is fraud and will tell paypal what i think of it. The more of us that complains and gives it some attention the quicker they will change their behavior.
  • thornythorny Posts: 38 Tin ✭
    @Skookum_Jim Thanks for the update. And yes, good idea to report it.
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