Korean Job Discussion Forums

[skintboy]

Hi, I need to use my US based credit card to pay someone in California US $5100.
I dont have the cash available and I am outside of the US.
Is it better to use my US based credit card to purchase an International money order from here (outside USA) or use my US based Credit card to paypal them the cash?
Which is less expensive?

[tob55]

If you are talking about making a payment by credit card, then the PayPal option would be more advisable since you are dealing in Dollars to Dollars using a US credit card without an exchange rate. I move money back and forth through PayPal and the conversion rate from US dollars to won is a substantial hit on the money coming in. I suppose the rate for exchange if you are sending money back through a bank wire or money order would be quite expensive. At least from working with both that is what I know.

[skintboy]

Thanks. So Paypal it is then. Altho my credit card (US Visa) will also charge me a fee as will paypal. But as you say the conversion rate for an intl money order may be much more...

[tob55]

I just know that the exchange rate you pay through the bank plus the charge for the international money order can be quite expensive. Since you were talking about using a credit card anyway, the fees for US transactions are peanuts compared to facing currency exchange fees. Hope it works out well for you.

[tfunk]

Can Korean employers use Paypal to pay into my Irish bank account? I can think of two problems off-hand: the interface isn't in Korean and Korean CC cards probably won't work. So, is Paypal out of bounds for Koreans in general?

[tob55]

Unfortunately, there is no PayPal portal to work with here for foreigners. I requested something from PayPal in this regard and was told they have a service that is like their main service, but it is designed to work for Koreans only. I am trying to find a way to establish a version of PayPal in Korea for foreigners to use if they choose to, but it make take a little more time to set up.

[tfunk]

[tob55]

Yes Koreans can pay using their credit card, but it is converted to US dollars or one of the other currencies that PayPal uses. Korean won is not a common currency for PayPal so every time I need to make a transaction I am charged an additional fee for converting the currency. It isn't much because I make small purchases, but for large amounts it really does add up. When transferring $1000 it costs the regular transaction fees plus another 7.5% that PayPal adds on to my transaction so I end up paying over $100 just to get money in or out of Korea. The OP is going to use a US credit card for their payment and that way there will be no conversion fees, which should save them considerable funds. Anyway, it isn't too complicated, but I learned the hard way.

BTW, I have gone round and round about this very issue with PayPal, because it appears to me they are gouging people when they really don't have to. I am hoping we can eventually work something out with them to make it more equitable for people who live and work here so the fees won't be so exorbitant.

[bacasper]

[tob55]

In your account there is an option for adding a bank. You must have the account number and the routing code to the bank that you input from the selections they give you. You can set up as many as you want and there are no fees to do it, but to transfer money into your Korean account without a fee you have to transfer more than 149,000 KRW per transaction. The upper limit set by PayPal is $1000 US per day or what ever equivalent Euro or other currency you might be converting from.

Also, it is best to get your account to the highest level allowing you to transfer the most money. It requires having a credit card to do, but well worth it. They call it having your account verified. This increases the limits you can transfer and how often. Of course sending your money to a different country will require you to pay taxes to that country on earnings, so it is wise to have everything well thought out before getting everything set up.

[BrownDean]

Always cash. People with money can always get cash.

[bacasper]