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    How expensive are PayPal Exchange Rates?

    We're excited to hear our BER users' experiences with the PayPal International Money Transfer service. Whether you're a long-time user or new to PayPal, your stories are incredibly valuable. Share how competitive PayPal exchange rates have been and any tips you've discovered. Your insights will help guide and inspire others in our community. Join in and share your PayPal money transfer journey today!

    Jul 8, 2012 (Upd: Feb 5, 2024)  

    When you use PayPal to convert the payments you have received or send a payment in a different currency, the Total Cost will depend on how you pay but generally you will be charged between 4 to 6 percent of the total amount being converted.

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    How is PayPal’s exchange rate calculated?

    The base foreign exchange rate at which PayPal obtains foreign currency is determined by 3rd party financial institutions, and are adjusted regularly based on market conditions. The exchange rate that PayPal then provides you also includes a processing fee above the base rate .

    If you use your credit card to send a payment, you can usually opt to use your credit card provider’s conversion rate instead of PayPal’s. If you choose to use MasterCard or Visa’s exchange rate, the applied conversion rate will be shown on your credit card statement, and not at the time of the transaction.

    PayPal seeks to keep its foreign exchange rates competitive with credit card transactions and transferring money via banks however they are not competitive when compared to specialist on-line payment service providers such as OFX or the other FX currency converters for your country as featuring on our best rate foreign transfer calculator.

    PayPal can handle payments between the following currency pairs : AUD, CAD, CHF, CZK, DKK, EUR, GBP, HKD, HUF, ILS, JPY, MXN, NOK, NZD, PHP, PLN, RUB, SEK, SGD, THB, TWD and USD.


    Whenever you use PayPal to transfer money from one currency to another you will be charged a currency conversion fee.

    The rate will be calculated at the time of the conversion in any of the following cases :

    PayPal is not a currency dealer and therefore must purchase foreign
    currencies from its bank. PayPal receives a quoted wholesale rate from
    its bank [twice a day], and adds a 2.5% spread above this rate to
    determine the retail foreign exchange rate that is applied to customers
    who make a transaction that involves a currency conversion (such as a
    payment in Euros from a U.S. dollar balance), or a withdrawal of dollars
    by a U.K. user to his local bank account (the dollars must be converted
    to pounds sterling before withdrawal).

    If you click the link “Conversion options” on the Review Your Payment page, you will get a page that explains that you have two options for being charged for a currency conversion. The two options are:

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    Very informative article about PayPal. I just read that PayPal will shortly stop serving Turkey due to regulatory restrictions.


    Yesterday I received a very large sum in GBP and PayPal converted it to AUD, they converted it at the following rate:

    PayPal Exchange rate:
    = 0.675525 British Pound

    This site says:
    1 Australian Dollar = 0.647325 British Pound

    There’s quite a difference and when it involves a large sum of money it adds up I wish I’d found this site sooner!


    The 2.5% commission PayPal charge is applied when you receive a payment in a currency for which you don’t maintain a balance in your paypal account. For example you receive CA$ and you accept this payment but directly converted in US$. On the other hand if accepting the payment in CA$ and changing it in US$ then the commission is higher, or at least the exchange rate is different, so you finally pay them a higher fee. The best way is to only deal in your local currency. And open and close foreign currency balances accodring to your needs. Be… Read more »


    Hate to say it but Paypal is not your friend on international exchange rates, and they are never going to be. They use their own calculations and take a percentage of the transfer. If possible, get the money out in the original currency and use a bank to switch it to local funds. Obviously this means using Paypal won’t often work for you.

    How expensive are PayPal Exchange Rates? posted under: Reviews  

    Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors or users should not be taken as a reference to buy or sell any financial product.

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