Security Deposits with Paypal & how to avoid the charges

[bentisdall]

After some Chinese people left our flat in a disgusting state I am minded to introduce a compulsory security deposit.
I know some people use Paypal because there is a 60 day refund policy with no charges. But I think that is only for payments in a single currency.
eg If some Australians pay me a 200 euro security deposit via Paypal I/they will incur some currency exchange charges. However can I get round that by getting them to pay 250 Aussie dollars and then holding the balance as Aussie dollars in my UK paypal account?
Anyone know the answer to this?

[wallypott]

I take Paypal security deposits where I can I have never had to pay for any exchange rate differences, I ask for X deposit using the Paypal email money request. Then refund it or part of it, and all charges are refunded. However if you refund only part, only a corresponding part of the charges are refunded. What the initial currency is in doesn't seem to make any difference.

[wendyj]

don't you lose 3.4pc of whatever for each transaction?

[Hells Bells]

No you don't . They are deducted from the amount you received, but if you refund, you get them back from PP.

I'm doing a damage deposit in dollars for an American couple.

[bentisdall]

So I think from what you're saying the deposit from the American couple has to be paid (and stay in) dollars.
Otherwise it's perfectly possible the euro could lose 20 percent in 60 days and Paypal can't be exposed to a big currency fluctuation.

[Hells Bells]

It doesn't have to be paid in dollars, but yes, I assume there would be exchange differences if we didn't. TBH it's the first time I have been asked to do this. I may do it for my UK guests too (French ones pay DD on arrival).

[ccazes]

I have had a PP deposit from an australian payed in US $ and a PP euro deposit by a Latvian. I think they chose the currency they wanted to make the payment in when they logged in to Paypal.
I cancelled each time and they were refunded the full amount I imagine in $ or euros. They probably will have lost/gained a little depending on the changing currency rates but they did not pay any fees which in itself is a big plus for everyone. It seems silly to pay charges on a deposit that we are more likely than not going to reimburse.

[Nightowl]

I always send a PP invoice for the security deposit. I don't think it matters what currency your guests use - I always invoice in euro anyway. they pay, when they go, I find the invoice details, click on it, and there's a refund option. All fees are refunded. It never costs me anything.

[Hells Bells]

It doesn't have to be paid in dollars, but yes, I assume there would be exchange differences if we didn't. TBH it's the first time I have been asked to do this. I may do it for my UK guests too (French ones pay DD on arrival).

Seems a little irrelevant now, as 5 days before balance is due, she has cancelled.

[Nightowl]

Seems a little irrelevant now, as 5 days before balance is due, she has cancelled.

oh what a pain!

Please refer to thread:

'late cancellation etc...'

[katiebythesea]

I am going to put a paypal pay button on my website to take credit card payment (with the caveat that there is a 3% surcharge for this!) can I then use the same account to take my security deposit payments like people are doing here or is that a separate account?

[Nightowl]

I don't think it matters how they pay (credit card or not) the money all goes into the same PP account; in fact I don't think its possible to set up more than one PP account which is linked to the same email address /bank account in any case.