Why sending money overseas has become more expensive for Australians
Online payment company Paypal has been an integral part of online shopping and money transfers for many Australians since the rise of the internet.
But users of the online service have been left disappointed with changes to the fees when sending money abroad.
PayPal’s current policies changed on April 5 meaning money sent from an Australian bank or PayPal account to an international one will now incur a set fee.
"Previously, sending money to a friend or family member with a non-Australian PayPal account incurred a fee depending on a combination of the payment method used and the recipient’s country. Now, a flat fee of $5.99 AUD will apply," an announcement on the company's website reads.
Paypal also confirmed any amount of an international transfer where a credit or debit card is used, a 2.6 per cent fee of that amount will occur on top of the fixed $5.99.
That percentage is down on the previous 3.9 per cent to 5.2 per cent which applied for the whole transaction when a credit or debit card was used.
This may be favourable for users sending large amounts of money to friends or family, however the change will prove costly for those using Paypal for smaller fees.
Thankfully the $5.99 fee only affects personal transfers sent overseas and does not apply to transactions within Australia or for commercial transactions, meaning online shoppers need not to worry.
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Eagle-eyed Reddit user intelminer posted the change from Paypal's website to the online forum on Saturday, prompting a series of comments slamming the move.
"I’m disappointed, but not surprised," one user wrote.
"That's obscene. eBay/Paypal are making billions and that's not enough. I often receive small amounts of money for overseas work via Paypal. No more," another user declared.
"Great. Where else can we get screwed. Seems limitless," one comment sarcastically read.
Several comments suggested moving to cryptocurrencies was the best alternative to using Paypal and other money transfer sites.
