The money is held in Paypal and then converted into MYR when it's withdrawn into our account. None of the USD touches our hands or our bank accounts until it's converted in MYR. Our company goes through audit with an internationally recognized firm and have fully disclosed this and there's no problem with this. I believe you are quoting the Exchange Control Act which imposes certain control with dealing and selling gold/foreign currency but this does not fall into any of these restrictions.
Even then, our Paypal account is mainly used to service international customers. We do not ask for an address in our Paypal so there's no way to tell if you're Malaysian or not. We just assume you aren't. We are free to determine our prices and BolehVPN bears the 3.4% and USD0.30 charge as per the Paypal merchant agreement as per our own internal calculation but we do mark it up a bit to reflect certain additional INDIRECT costs in dealing with Paypal funds and USD such as currency exchange risk, fraud and the additional accounting and processing that needs to be done. This is not in breach of Paypal's terms of service.
Firms frequently charge different prices for local and international. If you buy via Paypal, I assume you're international since MolPay accepts debit cards and all other forms of payments. The reason why we keep it in USD is cause international customers feel more comfortable in dealing with USD and can compare value to other VPN providers easier.
However we are still free to charge a higher price due to the indirect costs involved and additional hassle in dealing with foreign currency (and accounting for it) or simply express a preference to charge locals a bit cheaper to 'regionalize it'. It will never be an exact conversion and our rates were adjusted at a different time when USD rates were weaker. If I operated solely in USD you would have a better argument. As we don't offer USD payments in ANY OTHER FORM except Paypal, it can't be compared to our 'normal rates' without Paypal fees.
At the end of the day, you're bringing this all up because you want to pay via Paypal and pay in RM. Let's not confuse the issue in terms of legality or what is 'normal business practice'. We give all the payment options available and
MolPay also accepts Debit cards with no problems as far as I know so the only qualm remaining is Paypal security (which is questionable as there has been cases where security flaws have allowed hackers to access credit card details as recent as Nov 2010 and even recently as 23 March 2012, a potential flaw was found in the login.
http://www.computing.co.uk/ctg/news/2163065/paypal-closes-potential-flaw-login-pages)
Hope this answers your queries and I would appreciate if you could be more careful about accusing us of breaching laws without a solid basis.
And I Repeat
MolPay Accepts Debit Cards
