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![]() ![]() Click on the merchant's local currency, which in this case is USD. To do so, click the "See currency options" button on the payout screen. To avoid PayPal conversion fees, we need to make the purchase denominated in US dollars - a.k.a. If we hadn't left the page to check how much the real exchange rate was on the day, we would've been unaware that PayPal's total charge was actually £35.14 more expensive. Of course, PayPal does not spell this out clearly - it merely lists its exchange rate. ![]() The PayPal currency conversion fee: a 4.5% fee for conversion service. In other words, the PayPal currency conversion is using a very weak exchange rate on us, charging us £771.74 instead of only £736.60. ![]() (You can also find the mid-market rate on Google or XE.com.)Īt that real exchange rate, our $997 purchase should be worth just £736.60. Monito Always Check the Real Exchange RateĪfter visiting on a separate tab, we found that the mid-market exchange rate at the time of our purchase was 1 GBP to 1.3535 USD. However, the PayPal exchange rate is not equal to the real mid-market exchange rate. PayPal shows us their exchange rate too, which was 1 GBP to 1.29189 USD at the time of purchase. Monito How PayPal Hides Their Currency Conversion Feesīelow, you'll notice that PayPal defaults to quoting the purchase in our local currency - British pounds - instead of in US dollars. Since we are using our banks in Europe to complete this $997 transaction, the US dollar is considered a "foreign currency" in our case. The course was created by a seller living in the United States and the price was quoted in US dollars. We recently bought a great film course online. Let's learn how to avoid conversion fees on PayPal exchange rates by using the following example - Purchasing From a Foreign Company ![]()
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