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Credit Card over Paypal when you can

Posted in Tech by Mythokia on July 18th, 2007

Just a little tip to those who does online shopping regularly, and those who might be tempted to given the weakness of the US dollar. PayPal’s exchange rate from US to Singapore dollars is about 10% higher than the market rates, which is more or less what you get when you purchase using a credit card.

This isn’t exactly news, but most just hammer through the payment screens without looking at the exchange rates. So, if given the choice, pay by your credit/debit cards directly instead of using Paypal, even though it could be a bit more of a hassle to look for your wallet and dig out your credit card.

3 Responses to 'Credit Card over Paypal when you can'

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  1. Clifton said, on July 24th, 2007 at 15:50

    I use Paypal whenever I can. I do not use my debit card to purchase under Paypal.

    What I do is purchase USD from individuals.

    Basically that fellow transfer to me at a agreed rate, I transfer to him via inter-bank and tada.

    Usually rates would be at 1.49, huge difference from what the bank’s gonna charge you.

  2. Derrick Lim said, on July 24th, 2007 at 18:39

    I don’t quite understand. Surely some form of currency exchange would have taken place? Unless, of course, you do a physical transfer, since if he paypals you in USD, he would have to have a bank account that keeps money in USD, which in that case he would be the one bearing the exchange costs.

    In any case, it sounds interesting and thanks for sharing.

  3. Clifton said, on July 27th, 2007 at 15:38

    Imagine I’m selling my items on eBay (world wide), and the person transfers 50USD to me.

    If I would to request for a withdrawl to my SG account, it’s gonna take quite sometime the bad rates.

    Thus what they do is just sell to the locals directly.

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