Paypal vs. Credit Card Currency Conversion - Which Gives Better Rates?

Mon, 01 Mar 2010 22:26:01 -0800

Teaser:
Which should you choose, credit card or paypal? Compare which gets the better rate?

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Here's a topic which would interest frugal shoppers and businesses who pay for outsourcing, services, gifts and other products online with Paypal. Comparing Paypal vs. Credit Card Currency Conversion - Which gives better rates? Personally I thought my credit card would get the better rate. But it turns out Paypal gives the better rate taking in consideration the whole transaction including fees. I though Paypal was only trying to be difficult when they try to force me to use Paypal for the currency conversion process and not my credit card.

Ok this is the experiment I did: First I took note of how much it was to convert from Australian dollars to US dollars using Paypal's payment method, with Paypal Conversion Rate. For $100 USD, it would cost me $115.78 AUD. That's including all the fees and currency conversion costs and Paypal allowed me to pay this bill either by using my Direct Deposit, or credit card or current Paypal Funds. But then I switched my payment conversion method to my own credit card company - so my credit card will do the currency conversion. My bill came to this: $100 USD cost $113.56 AUD.... BUT... there was an additional International transaction fee of $3.35, bringing my cost to $116.91 - which is $1.13 AUD more expensive. I did the same experiment with another transaction of a smaller value, and it was similar: PayPal was cheaper to use. Yes the Credit card companeis give you a good exchange rate, but then they charge their fees - and that's when they double dip as the card companies make money on the exchange spread and the supposed "international transaction fee" which is a fixed price per transaction plus a percentage. Check with your own credit card if this is the case.

USA Cheap Shipping to Australia

Wed, 13 Jan 2010 22:59:42 -0800

Teaser:
Why is Shipping from USA to Australia so Expensive?

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Ha! I was lured to go shopping online in USA. Compared to Australia, The land of the free - USA has an awesome online shopping experience as prices are extremely competitive. From books to clothes to computer gadgets, everything is pretty much on sale every week, month and end of season. Of course, the best time to buy is during their black Friday sales right after Thanksgiving. Right now, its their end of season sales for clothes which begins right on New Years day... Anyway, shipping from USA to Australia is ludicrous. There are a lot of options when buying stuff from the US. You can get it sent by the store direct to you - which is sometimes really expensive... then you can get a freight forwarder to have them save up all your individual purchases online and then send it to you in one package. Other people who like to buy car parts in USA contact car importers hoping to hitch a ride with one of their regular imports back to Australia.

Don't use UPS or FedEx - they are a courier company. They are more expensive. USPS is the cheap option for shipping from USA to Australia - which is their equivalent of Australia Post. 4Kg or 8 lbs 12.8 oz using USPS should cost USD$44. Half a Kilo or 1 lbs 1.64 to Australia should cost about US$13. If you are travelling to USA, then you can have your purchases sent to an address where you can pick them up. This is perhaps the thriftiest option since most online shops in USA offer free shipping. Good Luck and don't forget to search for shopping coupons and discounts on Google before you Checkout of your shopping cart!

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Paypal vs. Credit Card Currency Conversion - Which Gives Better Rates?

USA Cheap Shipping to Australia