Our next question comes from Jeffrey Lindsay with Sanford Bernstein.

Jeffrey Lindsay - Sanford C. Bernstein

Just following on from that, could you give us any sense of -- are you going to be taking any hedging initiatives, or do you have any in place to offset the risk of this dollar appreciation? And then can you give us any color on the quality of receivables in the Bill Me Later acquisition and your expectation for net charge-offs? Do you think they are going to stay at the current 3.4% rate? Thank you.

Robert H. Swan

First in terms of hedges, for the most part our hedging strategies are entered into at the beginning of the quarter for the next 90 days, for the most part. So we are exposed in terms of translation of revenues within the quarter. However, we hedge our exposures in terms of income within a range in the 90-day period, so we get pretty protective within the 90-day period but not very protective overall beyond 90 days.

In terms of Bill Me Later’s receivable portfolio, we indicated last week that our expectation was that the receivable portfolio would be about $550 million, give or take when we closed the transaction later on in the quarter and when we assess the portfolio, we try to take into account both historical trend rates, what we were seeing on recent approval rates and charge-offs, and a view on a go-forward basis about what we could expect the current economy and the future would be on the portfolio. And with that, we tried to as best we could take that into account in giving you the $550 million loan portfolio balance.

Mark Rowen

Next question please.

Operator

Our next question comes from Imran Khan with J.P. Morgan.

Imran Khan - J.P. Morgan

Yes, hi. Thank you for taking my questions. The question is if I look at your listing growth rate the last three quarters and look at your conversion rate, it seems like there is an inverse relationship, so trying to understand this 18% conversion decline, how can you turn that around? You’ve talked about Best Match -- I think you rolled it out in Italy. Give us some color -- when should we expect to see that in the U.S.? And do you expect the conversion to continue to decline? If so, for how long? Thank you.

John J. Donahoe

Imran let me address that. The conversion rate is actually transitioning as we talk because the recent changes we’ve made are changing the nature of fixed price listings where now instead of a seven-day listing, sellers are getting a 30-day listing goods to cancel. And so what I think we will see is a site that has more listings but those fixed price listings will only get exposure when the sellers offer the best prices and the highest service.

So we are going to spend less time on conversion and more time on sold items, and what in essence is happening is our search or our finding platform is changing how we bring value to the top of the search results. Auctions will continue to time ending soonest, which is the best way to bring the best values to a buyer in an auction format for auction listings. And then for fixed price listings, the change we are making in Q4 is that instead of time ending soonest being what is bringing the fixed price listings to the top of the list, we will find the lowest price highest quality seller fit with that particular search term or bring that to the top of the list.

So, conversion rates will probably still remain relatively lower because of the increased fixed price listings but successful items, that is sold items, is really the metric we will be focusing on. As Bob mentioned, that’s down four points in Q3, we think largely driven by the economy and it’s a metric we are very much focusing on, both to assess how findings are going as well as how our site is going in Q4 and beyond.

Robert H. Swan

The only other thing I would add Imran is a better consumer spending environment, all else equal, will also impact conversion so that clearly is one that we believe is impacting growth of sold items.

Mark Rowen

Next question please.