Why use this instead of PayPal?
PayPal is widely seen as a convenient option for marketplace sellers looking to receive and send international payments. However, using PayPal does have a few disadvantages:
- Payment fees. PayPal charges a fee when you receive payment from a sale. In the case of PayPal Wallet transactions, this fee is 2.9% + $0.30 for payments from within Canada, 3.7% + $0.30 for payments from the US and 3.9% + a fixed fee for payments from all other countries.
- Currency conversion fees. When you receive payment in a foreign currency, you’ll need to convert that money into Australian dollars to transfer it to your bank account. When you do this, PayPal adds a margin of 3.5%.
- Low exchange rates. If you send an international payment via PayPal, you’ll typically be able to find a superior exchange rate from a specialist transfer company.
In comparison, there are no set-up or ongoing fees attached to the OFX Global Currency Account. And while OFX does charge a percentage fee when you make a transfer, it’s worth comparing this fee with the total cost of managing your international payments with PayPal to work out which provider offers better value for money.