'How to handle PayPal currency conversions causing a higher charge at order checkout?
We have an online platform where we sell our product and we use Paypal to handle payments. Our customers are shown the amount they need to pay in Lek. Since our home currency, Albanian Lek, is not supported in Paypal, we convert the order price in Euro and we pass that to PayPal on checkout.
When checking out, PayPal converts the amount from Euro back to Lek, using their own conversion rates, which charges the customer a higher amount that the one they were shown in the beginning.
We want to be transparent with our customers and we don't want to show them a different amount to be paid when they checkout. How can we get around this? Our options are:
- Get PayPal's conversion rates, do a reverse calculation ourselves and display the right price to the customer.
- Have the user pay the exact amount they were told in the beginning and we pay the conversion cost.
Any other ideas than the ones mentioned?
Solution 1:[1]
If you have a PayPal account manager, you can ask them about presentment currencies.
Assuming you do not have such a PayPal business contact (most do not), the best solution is to simply display actual EUR prices on your site. An approximate LEK conversion can be shown alongside, if you must, but the EUR price is what will be used for the actual PayPal transaction.
The payer will only see a conversion from some local currency to EUR if they are using a funding source denominated in that local currency.. This conversion happens prior to the EUR payment being made, which again is the actual PayPal transaction between that payer and the receiver account; any conversion from LEK (or other local currency) to EUR is happening before the actual PayPal transaction in EUR
Sources
This article follows the attribution requirements of Stack Overflow and is licensed under CC BY-SA 3.0.
Source: Stack Overflow
| Solution | Source |
|---|---|
| Solution 1 | Preston PHX |