FNB Exchange Rate Difference on Paypal

[Keeper]

Why does www.xe.com list it as
1 USD = 6.79870 ZAR

but when you want to withdraw from paypal, FNB claim it's:
1 (USD) = 6.6313 (ZAR)

:wtf:

 

[HavocXphere]

The one is the selling rate the other the buying rate. You need to use the one from the banks perspective. The difference between the two is the commission for he foreign exchange conversion.

Example:

Keeper buys $100 kindle books on Amazon. You've got Rands but need Dollars to pay Amazon. So you're buying dollars. That means the bank is selling dollars, so convert at the selling rate.

EDIT: Its also possible the XE is quoting the middle rate. i.e. (Sell + Buy)/2

 

[guest2013-1]

What Havoc says. The banks "buy back" the dollars you want to exchange at the rate THEY buy it at. They, in turn, sell the dollars TO you at their selling rate, not what they buy it for.

That is why I don't understand why they have a commission percentage AND that difference. Greedy whores.