PayPal currency

[Jon12345]

When I log into my PayPal account, I see this:

CurrencyTotal
USD (Primary) $66.66 USD
GBP £13.80 GBP

I am a bit confused. Does it mean that I have two accounts within my PayPal account, one USD and one GBP, both with their own balances? When I make a payment, does it always go from my USD side as its "Primary"?

Thanks,

Jon

 

[johndon68]

As I understand it, all PayPal accounts are, essentially, in dollars but, as you are a UK account, you get to see the balance in GPB as well - the transaction list should show everything in GPB anyway.

If those figures you've listed are accurate then there is something seriously wrong with the exchange rate

John

 

[StevensOnln1]

PayPal lets you have multiple currencies within the same account. You'll see a balance for each and you can transfer money between them (the money is not automatically converted).

Your primary currency is simply the main one which PayPal will use to send payments etc. You can change which currency is primary if you go into your profile under my account.

 

[Jon12345]

So, does that mean my PayPal account is like having two current accounts, one in dollars and one in pounds, with their own distinct account numbers?

 

[johndon68]

No, it's one account that just allows the values therein to be displayed in multiple currencies.

John

 

[thelegalstop]

John is absolutely right.

No, it's one account that just allows the values therein to be displayed in multiple currencies.

John

This is very reasonable for PayPal to do that. It's because of the currency conversions - imagine you needed to convert the money received or paid to sterling or dollars every time you do a transaction. It may not matter that much in £50-£100 transfers, but you will be losing lots of cash in larger transactions (not mentioning the conversion fee or exchange commission that PayPal could apply)

 

[Raw Rob]

So, does that mean my PayPal account is like having two current accounts, one in dollars and one in pounds, with their own distinct account numbers?

Yes, pretty much. (Although of course there are no account numbers with PayPal accounts, they are not quite like bank accounts.)

johndon68's first post is completely incorrect, and my understanding of his second post is also incorrect, it is not the same balance shown in two currencies, it is two separate account balances.

The confusion is probably occurring because you don't have to have your account set up like this. I've changed the settings on my PayPal account so that all payments in foreign currencies are automatically converted to Sterling, so I only have one Sterling balance.

 

[johndon68]

ohndon68's first post is completely incorrect, and my understanding of his second post is also incorrect, it is not the same balance shown in two currencies, it is two separate account balances.

More than happy to be corrected but if there are 2 separate balances, why do both balances go up and down when I make payments/receive money even when I do so in only 1 currency?

John

 

[Raw Rob]

More than happy to be corrected but if there are 2 separate balances, why do both balances go up and down when I make payments/receive money even when I do so in only 1 currency?

Interesting. I don't know. Is your account set up differently? Is it a USD account like you referred to earlier, operating in a different way to the standard GBP account? Or is your account set to automatically take money from a different balance if there is not enough in the currency balance you are using?

 

[johndon68]

It's a bog standard Premier account with the primary currency set to be USD (if for no other reason than I wasn't even aware that you could change it ) and all transactions showing in GBP.

The GBP and USD balances always match exactly (subject to the exchange rate of course) and both balances change regardless of the currency actually used for a transaction...

John

 

[Raw Rob]

It's a bog standard Premier account with the primary currency set to be USD (if for no other reason than I wasn't even aware that you could change it ) and all transactions showing in GBP.

The GBP and USD balances always match exactly (subject to the exchange rate of course) and both balances change regardless of the currency actually used for a transaction...

Thanks for the clarification, I didn't realise that was possible. But based on Jon12345's figures, that doesn't seem to be the way his account is set up.

 

[johndon68]

Thanks for the clarification, I didn't realise that was possible. But based on Jon12345's figures, that doesn't seem to be the way his account is set up.

That's why I queried the exchange rate

John

 

[Jon12345]

If I transfer money from my HSBC Sterling business account to my PayPal account, where does it go? To the dollar account or the Sterling account?

I'm asking this because when I buy something in dollars, the money seems to go to my PayPal account in Sterling and gets converted to dollars. So, does it go straight into the dollar account or does it first go to my PayPal Sterling balance and then gets transferred to my dollar balance?

 

[Virtual Phone Numbers]

If I transfer money from my HSBC Sterling business account to my PayPal account, where does it go? To the dollar account or the Sterling account?

I'm asking this because when I buy something in dollars, the money seems to go to my PayPal account in Sterling and gets converted to dollars. So, does it go straight into the dollar account or does it first go to my PayPal Sterling balance and then gets transferred to my dollar balance?

It seems to be going to the sterling account first, and the reason is as it is probably coming in as GBP. So Paypal are converting it for you, once it has come in.

 

[Pish_Pash]

I have four currencies in my Paypal account (because I sell into foreign markets), when someone pays me in euros...my paypal EUR balance increments, when someone pays in USD my paypal USD balance increments....& so on.

I'm in the UK so my primary currrency is GBP...I can't withdraw the paypal EUR or USD to my GBP bank without converting them first (with Paypal) ....I'm actually in the process of opening up a Euro account so that I can withdraw my paypal euros to it direct (cos I'm sure as night meets day, the exchange rate Paypal will give me will surely be a festival of suck)

 

[andygambles]

I have a PayPal account with three currencies. USD, GBP, EUR. PayPal displays the total balance of each currency as a currency total and then an overall account total in GBP.

You probably have just USD open as a currency. You should open a GBP balance (do this from within your existing account not a new PayPal account) then transfer all the. Funds to GBP and close the USD account. As mentioned there is also a setting to convert all payments to your currency when received. Set this.

We have three currencies as we pay suppliers if those currencies and also so we only do currency conversions in bulk rather than for every transaction.