PayPal offers foreign currency balances and one thinks it would be possible to use them without converting them. We for example have a UK PayPal account in GBP and would like to accept USD and EUR customers payments. Of course this would only make sense if we can withdraw those funds by transferring them to other same currency bank accounts. Unfortunately this is not possible. Even worst, PayPal confirmed to us, that by doing so we risk to get our funds not only once converted, but twice!
Example: Withdraw EUR Euro funds to our EUR Bank account out of PayPal. We would receive EUR, but the funds would prior get converted to GBP and then to EUR agai, which means we would get charged with conversion fees and rates twice!
Here is a part of the Message discussion protocoll:
"Me: So this means that it would be possible to transfer from this UK PayPal account Euro funds to a EURO Bank account without directly in Euro without converting in GBP? Must this Euro Bank account be in the UK or can it also be in the EU?
PayPal representative: Yes, you might see it converted to GBP in you activity page but it will be in euros when it entered your bank. The bank can be in or out of the UK.
Me: but if I see it converted prior to my receipt at my EURO bank account this means, that the transactiom would have been charged with conversion rates so I would receive less Euros. Is this correct. I ask this because I have faced this with another bank and the Euros I received wher 10% less! Without reaseon they got converted inbetween two Euro accounts.
PayPal representative:Yes, that is possible to happen.
Me: But you understand that this would be fully unacceptable and that it would be a reason not to use my PayPal account for our new international ecommerce shop? Because this case is even worst then transferring into aGBP account where you only face 1 conversion. If I would transfer Euro funds to a Euro account they would convert first to GBP and then again in EUR, so this would be double conversion rate losses and charges. Unthinkable and a reason not to use PayPal. Agree?
PayPal representative: I completely understand where you are coming from. As that is how your withdrawals will be processed, we can stick to only withdrawing the funds to an UK bank account so that only one currency conversion will occur.
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