How to Capitalize on Currency Changes? Australian businessmen, help me!

Hey,

Im Australian and like everyone on the net i get paid in USD. Currently it is 1 for 1 pretty much. But in 6 months it will drop down heaps low again.

Paypal automatically transfers the USD as soon as it enters your acccount to AUD.

Now how can i get paid, so the USD are converted to AUD in 6 months or longer. When the currency is much weaker against the USD. So i get more money?

US Bank accounts are out of the quesiton since 911 laws.

How can i do this?

Thanks

 

Ask for the currency you want to receive. You have an option to select as far as I know.

Hope it will help.

 

Why is PayPal converting it? Whilst we don't use PayPal often for our business when we do and bill in USD PayPal holds it in USD in the account until such time as you attempt to spend it or withdraw it in which case it then converts it to GBP. That said, the site does give a total balance in GBP based on "todays" exchange rates but then on the breakdown page will give how much its holding in each currency and what that currently equates to in GBP.

How tied are your customers to PayPal? If you have no choice but to use PayPal then you're just going to have to live with it. Certainly HSBC allow you to have a dollar account in australia but your most likely going to pay a higher withdrawl fee from your payment processor as its still going to be based in Oz

 

Hey thanks for the detailed response. I was under the assumption that paypal automatically converted the currency as soon as it went to my account. E.G Even if USD was my primary currency it would be converted when i was immediately paid by a company. Or does it only convert when i withdraw the funds to my bank account? Either way the rates are uncompetitive though.

Are HSBC's currency rates much better to convert?

Im not reliant on paypal, its just an option to get paid into.

Thanks mate

 

in my spare time I trade the FOREX market. Its trading currency pairs and the ups and downs that go with the constantly changing market. Currency market is open 24 hours a day like 6 days a week and closed for a small time. Its constantly changing, even though you only see little differences - its leveraged, thats how banks and traders make their money. Even a tiny $0.01 change means a huge difference when the banks are cashing in hundreds of thousands of dollars at a time.

If you are unhappy with paypal maybe you should look into a merchant account. Most places deal in USD and will not convert or charge anything extra. Sure it costs you $15-25 a month to have an account, but you run a business - no? In the US you can write off business expenses. Theres a saying, "it takes money to make money" ... and I believe it and live it every day! There are already programs out there to accept credit cards right on your iphone/android phone or ipad etc. merchant rates are usually better then paypal or at least competitive with paypal... many people just like the "convenience" of paypal, and thats why they charge a premium. You are paying into the name. Just like when you buy a rolex watch. It doesnt cost any more to build a rolex then any other quality watch, but they charge whatever they want because theyve built up their name and its known as a quality name.

 

Okay thanks for your response webrec. Can you reccomend me any merchant accounts to go with?

 

Certainly in the UK it converts it when you withdraw, cannot say if Australia is the same or different. The problem you will probably face is that PayPal probably don't allow you to withdraw in any other currency than your home countries own and likewise only to a local bank so even if you have USD held in PayPal and a USD bank account PayPal PROBABLY only allow you to withdraw to an Australian bank in AUD.

HSBC conversion rates are irrelivant as they can hold the funds in USD and you could therefore withdraw in USD and exchange it to AUD where ever you wanted (presumably, would need to check with them but again, its how similar accounts work in the UK)

You will need to look at how much your transacting through as most of the solutions are going to involve monthly fees and so unless the volumes are significant they are probably going to be higher than the effect of the poor exchange rate PayPal gives

 

Well I am in the US and not really sure about merchant accounts in other areas. Im also not sure if merchant account vendors in the US work with people outside the US. You may want to check around your local area. Goto any small business with a credit card swiper and ask where they got it. Look em up, and go from there.