Cryptocurrency Q&A
Is a PayPal exchange rate a fee or a markup?
Is a PayPal exchange rate a fee or a markup?
Nicola
Thu Jan 30 2025
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5
answers
877
I'm trying to understand PayPal's exchange rate. Specifically, I want to know if the exchange rate they offer is considered a fee or a markup on the transaction. Could someone clarify this for me?
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5 answers
SsamziegangSerenade
Sat Feb 01 2025
Specifically, PayPal claims that this "exchange rate" helps in "locking in" a set exchange rate for the transaction. This implies some form of stability or security for the customer.
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emma_lewis_pilot
Sat Feb 01 2025
The discussion at hand is not merely about earning a fair profit for providing a genuine service. Customers are well-aware that PayPal needs to generate revenue from each transaction they facilitate.
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Michele
Sat Feb 01 2025
In reality, this exchange rate is artificial, set by PayPal rather than determined by market forces. This distinction is crucial because it highlights how PayPal's pricing strategy may not be as transparent or straightforward as it initially appears.
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SeoulStyle
Sat Feb 01 2025
However, the situation with PayPal differs in one crucial aspect. PayPal labels the additional cost an "exchange rate" rather than a fee or markup. This terminology is strategic.
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Paolo
Sat Feb 01 2025
By referring to it as an exchange rate, PayPal implies that the additional charge serves a purpose beyond mere profit-making. It suggests that this rate is beneficial to customers.
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