PayPal Exchange Rates and Currency Conversion Fees Review
PayPal's US transaction exchange rate includes a conversion spread. International-payment and card-funding fees can also apply, while overseas remittances may use Xoom.
Overview
PayPal supports international purchases, personal payments and balances in multiple currencies. When PayPal performs a conversion, its transaction exchange rate includes a spread retained by PayPal. Other payment or international-transaction fees can apply separately.
For US personal accounts, PayPal currently lists a 4% conversion spread for payments where the recipient receives another currency and 3% for other conversions, unless another amount is disclosed. Pricing differs outside the US.
PayPal and Xoom are related but separate products. PayPal handles checkout, balances and PayPal payments; Xoom provides remittance delivery such as bank deposit, debit-card deposit, mobile wallet and cash pickup on supported routes.
Compare PayPal exchange rates
Use the live comparison below to compare PayPal with other available services for your transfer.
Best For
- Existing users paying an overseas seller or receiving supported currencies.
- Small personal payments where both people already use PayPal.
- Online businesses that need PayPal checkout and understand merchant pricing.
- Customers comparing PayPal conversion with eligible card-issuer conversion.
It is less suitable when the main goal is a transparent large bank-to-bank conversion.
Pros and Cons
Pros
- PayPal shows the applicable transaction exchange rate during conversion.
- Eligible users can hold and receive multiple supported currencies.
- Some card-funded payments offer a choice of conversion provider.
- PayPal login and payment tools are widely used online.
- Xoom adds remittance payout methods on supported routes.
Cons
- PayPal's exchange rate includes a conversion spread.
- International and card-funding fees can apply separately.
- US foreign-currency balances generally need conversion before withdrawal.
- Fees differ by account country and transaction type.
- Xoom pricing must be checked separately.
Fees Summary
The following US personal-account examples were checked on 16 July 2026:
| Activity | Published treatment |
|---|---|
| Purchase without conversion | No PayPal consumer fee for the buyer. |
| International personal payment | 5% international fee, with a US$0.99 minimum and US$4.99 maximum; applicable domestic funding fees can also apply. |
| Payment converted into another currency | 4% conversion spread, or another amount disclosed during the transaction. |
| Other PayPal conversions | 3% conversion spread, or another amount disclosed during the transaction. |
| Eligible instant withdrawal | 1.75%, subject to the published minimum and maximum; conversion may also apply. |
These figures are not one universal PayPal markup. The account market, funding source and transaction determine the charges.
Exchange Rates and Conversion Choice
PayPal says its transaction exchange rate is a base rate plus a conversion spread. When a card funds a payment, PayPal may offer an eligible user the choice of PayPal or card-issuer conversion.
If the issuer converts, it controls the rate and fees. A no-foreign-transaction-fee card can remove its issuer surcharge, but network conversion can still differ from the mid-market rate.
PayPal normally converts when a PayPal balance or linked bank account funds the payment. US foreign-currency balances generally need conversion into US dollars for withdrawal.
PayPal and Xoom
Xoom can use a PayPal login and linked payment methods, but it has its own transfer fee, exchange rate and delivery options. It discloses the fee and recipient amount before authorisation.
For bank deposit, cash pickup or mobile-wallet delivery, compare the live Xoom quote rather than estimating it from PayPal's general conversion spread.
Speed
PayPal balance activity can appear quickly, but withdrawal and banking times depend on the method. Eligible instant withdrawals carry a separate fee.
Xoom timing varies by destination, funding, payout, verification and bank or agent processing. Use the route-specific estimate.
Safety and Account Controls
Confirm the recipient, currency and conversion provider before authorising. Review automatic-payment preferences separately because saved merchant agreements can use different choices.
Do not use a personal payment to buy goods from an unfamiliar seller merely to avoid a commercial-payment fee.
Verdict
PayPal is convenient when both parties already use it, but the transaction amount must be assessed with the conversion spread and any international or funding fee.
For a larger conversion or remittance, compare the final recipient amount. Xoom may provide the needed payout method, while a specialist may offer different pricing.
Frequently Asked Questions
Does PayPal use the mid-market rate?
PayPal says its transaction rate includes a conversion spread applied to a base rate.
Can I choose card-issuer conversion?
Sometimes, for eligible card-funded payments. Compare the card's foreign-transaction terms first.
Is Xoom the same as PayPal?
Xoom is a PayPal service but has separate remittance pricing, delivery methods and terms.
Methodology and Sources
This review was checked against current PayPal US consumer pricing, the US user agreement and Xoom terms on 16 July 2026.
Primary sources:
- PayPal US consumer fees
- PayPal US user agreement
- PayPal conversion-fee guide
- Xoom user agreement
- Xoom money transfers
Affiliate Disclosure
BestExchangeRates may receive compensation from some services displayed in comparison results. PayPal is included for comparison and is not represented as an affiliate partner.
Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.