What the hell! Our funds were returned today and we received Rs. 17,936 less!
What's worse, they will re-charge fees when we re-withdraw, so the damage is double. The two-timing thieves!
We did an analysis and this is why money has been cut:
When you withdraw money, PayPal takes a currency exchange commission of around 3.5%. This is normal practice. Even banks do it when you make an international purchase.
So let's say exchange rate $1 = Rs. 100. When you withdraw one dollar, assuming PayPal charges 0 transaction fees (this is different), PayPal will take exchange rate to be Rs. 97.5 and put in Rs. 97.5.
Now, if a payment is returned, ideally Rs. 100 should go back cause the cross conversion never took place. So did they return the Rs. 97.5? No, instead, the sneaky hounds, took the latest exchange rate, and on that cut a further 3.5%.
So lets say on 97.5, they cut 3.5% on that and returned 94.09.
When we re-withdraw, as always, they will cut on 94.09. So imagine the loss!