W3C home > Mailing lists > Public > public-webpayments@w3.org > January 2014

How PayPal handles choice of currency, & currency conversion

From: Joseph Potvin <jpotvin@opman.ca>
Date: Mon, 13 Jan 2014 14:04:26 -0500
Message-ID: <CAKcXiSqTboVgLzfV7+=aykjWpRFjKFogmhfPcrsQWNzBv52=sg@mail.gmail.com>
To: Web Payments CG <public-webpayments@w3.org>
It's interesting to look at PayPals approach to currency choice:

And here's their approach to inter-currency conversions:

Some comments on their conversion approach...

RE: The most readily available information on currency exchange rates is
based on "interbank exchange rates". Interbank exchange rates are
established in the course of currency trading among a global network of
over 1,000 banks, and are not available through consumer or retail
channels. Consumers may use these rates as a reference, but should not
expect to use interbank rates in transactions that involve currency

JRP: Okay, so they refer customers generally to a concept, but not to
anything specific. FWIW, "Paul Volcker once noted that trade is more
affected by 10 minutes of movements in exchange rates than by 10 years of
trade negotiations."

RE: To obtain actual retail rates, contact your local financial institution
or currency exchange, or check the rate displayed in your PayPal

JRP: The best they offer is a vague "ask your bank" or after-the-fact
"check the receipt".  Yet forex "noise" often has a greater range than the
profit margins vendors count on. By ensuring that vendors can choose their
preferred price stabilization index in the web payments environment,
they're in a better position to manage risk.

Joseph Potvin
Operations Manager | Gestionnaire des opérations
The Opman Company | La compagnie Opman
Mobile: 819-593-5983
LinkedIn (Google short URL): http://goo.gl/Ssp56
Received on Monday, 13 January 2014 19:05:13 UTC

This archive was generated by hypermail 2.4.0 : Friday, 17 January 2020 19:07:27 UTC