Cheapest payment method (USA -> Europe?)

[felipe]

Have any of you any experience with this? It would be a relatively high amount (about 1200$)...
Here's what I know so far:

- Paypal charges nada, except a 2.5% fee for converting currencies. This means I could open up a US$ balance on my paypal account and receive the money at no cost. However, I'd have to pay those 2.5% if I ever decide to pay someone in Euro/ have the money transferred to my german bank account.

- Moneybookers.com: No experience with them at all. No currency conversion costs and they charge only 1% ??? They were recommended by some friends, and their terms sound very good I guess, maybe too good?

- International Money Order/Draft: Is this still an option? How does it work exactly? As I understand you pay the ammount to your bank, they print you out some type of check/draft/order which you then send to the other guy and he sends it to his bank to clear? Or am I mixing things up here?

- Direct international bank transfer with IBAN/BIC numbers: Charges depend on which bank transfers/receives the money. Both of my banks told me they do charge a fee of 15 Euros for accepting the transfer, which is the same amount they charge for clearing the international check/money order..

Western Union et all aren't really an option as they are quite expensive are they?


So, the paypal method sounds great, except that if the greenback decides to loose its value EVEN MORE, I'd be loosing money. (although this shouldn't be the case, as the rate is going up again right?)
This also brings up another "problem" - I would have to spend the whole sum on gear again - as I'd probably be way too greedy to pay those 2.5% (~$30) to paypal.

Any input, comments suggestions advice?
Thanks in advance!

cheers,
Phil

 

[Pherdinand]

i'd go paypal. Watch out: there's a limit on everyday people's paypal accounts at around 750$.

 

[rover]

The current fiscal policy of the US supports a weak $, so I don't think it is going to go up too much, but it can't fall that much more though.

Paypal is going to charge the 2.5% currency exchange fee based on the currency from which your buyer is paying, not based on your account, so unless you specify you will only sell your item to a buyers in a specific country (ie the US or Germany, whatever is consistent with your account), I don't see where you will be able to avoid the fee.

Of course, for the other payment methods, the buyer pays the fees, not the seller. I think WU is the easiest to use as it can be done on line, but as you say the fees are expensive.

You may make out best just building the anticipated fees into the price of your item and accept paypal.

 

[felipe]

Pherdinand, this is odd... I just had my premier account downgraded to a personal one, and I have a limit of 5.000 Euros.. I am certified after all, but this really is strange, I remember reading about a 500$ limit prior to registering.


Rover: You are absolutely right, they do charge based on currency of the person paying, however if i.e. you have a european account, you can add more balances (in other currencies) to the existing one calculating in Euros.
So then the Buyer pays in $ to your $ balance, and no currencies are converted. They hide this somewhere on the paypal FAQ, and I double checked this by calling them, but they confirmed it.

Thanks for your input!

cheers
phil

 

[Mike Richards]

felipe,
You also need to pay attention to the exchange rate you are actually getting. Exchange rates are usually quoted in terms of buy and sell rates. These are the "retail" rates. Certain other transactions will get you an advantageous rate between these two - something of a "wholesale" rate. For example, if I make an ATM withdrawl on my Visa card in Europe, I get an in-between rate. Probably not the bank-to-bank wholesale rate, but better than retail. I understand direct wire transfers also get an in-between rate depending on the size of the transaction. Your bank should be able to advise you on this.
If you're trying to decide based on the rates you think the $$/Euro rate may change in the future, you're trying to out-guess a bunch of very smart bankers in Zurich or Tokyo.

 

[George S.]

I've sent the International Money Order to other countries. I haven't done it in a couple of years, so I'm fuzzy on the details. I think you just buy it for the $1200 that you need, pay $1200, and when it is deposited on the other side of the pond, the receipient receives their currency in their account for whatever equals $1200 USD. I kind of recall being told that some banks over there charge a fee (like $20) to deposit and convert it. I think there's a limit around $750 or something per money order, so you may have to send two.