Cheaper to pay with Card or PayPal

[Idiosyncratic]

When buying online, when there's the option to pay with either PayPal or debit card (FNB in this case), is it cheaper to pay with the card or PayPal (using money from the same card). I understand PayPal has different exchange rates - I'm guessing this could be a two-edged sword?

 

[Ho3n3r]

When buying online, when there's the option to pay with either PayPal or debit card (FNB in this case), is it cheaper to pay with the card or PayPal (using money from the same card). I understand PayPal has different exchange rates - I'm guessing this could be a two-edged sword?

I always select the option to use the card provider's conversion, so that PayPal doesn't charge me for it. Yes, you can choose.

 

[Praemon]

When buying online, when there's the option to pay with either PayPal or debit card (FNB in this case), is it cheaper to pay with the card or PayPal (using money from the same card). I understand PayPal has different exchange rates - I'm guessing this could be a two-edged sword?

I guess it depends on your bank. FNB's consumer exchange rates are very poor, so potentially it could work out cheaper using PayPal. The good thing with Paypal is that you get to see the exact exchange rate that will be used. With your bank, the amount initially reserved may not be the amount that eventually comes off due to the timing of the settlement (and the exchange rate at that point). I've generally found it slightly cheaper using Paypal than going direct with FNB.

 

[Idiosyncratic]

If only one could see the rate the bank offers......

 

[Praemon]

If only one could see the rate the bank offers......

You mean like here: https://www.fnb.co.za/rates/ForeignExchangeRates.html

It would be the "bank selling" rate. But then I think there's a currency commission fee of around 2.75% on top of that, which is what makes it more expensive.

 

[Drifter]

Where possible, I use PayPal. That extra bit of ease of mind because of their customer protection policy.

 

[Idiosyncratic]

You mean like here: https://www.fnb.co.za/rates/ForeignExchangeRates.html

I think there's a currency commission fee of around 2.75% on top of that, which is what makes it more expensive.

Holy smokes!

 

[Dan C]

Where possible, I use PayPal. That extra bit of ease of mind because of their customer protection policy.

Same here.

 

[NullHypothesis]

I did a test of this before.

Date: 29 November 2016

Amount to pay: $30

Google currency said the current exchange rate for $30 to ZAR was: R448.51

Paypal said I was about to pay: R460.23 (I did not go ahead)

I paid with my Capitec card: R445.13

Conclusion:
I paid R15.10 cheaper paying with my card.

It was a reputable service, so there was no worries about buyer protection. Although PayPal is apparently quite efficient with that.

 

[Idiosyncratic]

I did a test of this before.

Date: 29 November 2016

Amount to pay: $30

Google currency said the current exchange rate for $30 to ZAR was: R448.51

Paypal said I was about to pay: R460.23 (I did not go ahead)

I paid with my Capitec card: R445.13

Conclusion:
I paid R15.10 cheaper paying with my card.

It was a reputable service, so there was no worries about buyer protection. Although PayPal is apparently quite efficient with that.

Mmm, interesting. I think I'll do the same next time with an FNB card, but if there's a 2.75% fee, then it'll definitely be more expensive.

 

[HavocXphere]

Depends on the site

Virtual CC or Paypal if it looks dodge. Amex for everything else (for da points).

 

[Idiosyncratic]

Seems that with an FNB debit card I pay less for an item online than PayPal (granted, I tested it with 1 transaction). This should vary from day to day depending on x-rate

 

[ScottulusMaximus]

Being charged in forex and using your bank rate rather than relying on the PayPal conversion rate is ALWAYS cheaper. I should know A bit of a faff setting PayPal to do this, and they like resetting it to use their conversions fairly often as well, I have to watch it like a hawk.

Also stay away from the amazon conversions, always pay in the currency the seller is charging otherwise you're just adding more middlemen who take their cut.