PayPal charges a currency conversion fee that varies depending on the target currency, in addition to a separate conversion service fee.
Understanding PayPal's Currency Conversion Fees
When you convert currency using PayPal, two main types of fees are applied. It's essential to understand both to calculate the total cost of your currency conversion. These fees are percentage-based and are applied to the amount being converted.
Breakdown of Conversion Charges
The fees are typically broken down as follows:
- Currency Conversion Rate Fee: This percentage is applied based on the currency you are converting to:
- 3.5% when converting to US or Canadian Dollars.
- 4.0% when converting to other currencies.
- Conversion Service Fee: An additional fee of 4.5% is charged for the conversion service itself, irrespective of the target currency. This fee is factored in alongside the currency conversion rate fee.
Total Currency Conversion Costs
To determine the total charge for a currency conversion on PayPal, you need to combine both the currency conversion rate fee and the conversion service fee. The table below illustrates how these fees are applied:
| Target Currency | Currency Conversion Rate Fee | Conversion Service Fee | Total Conversion Charge |
|---|---|---|---|
| US or Canadian Dollar | 3.5% | 4.5% | 8.0% |
| Other Currencies | 4.0% | 4.5% | 8.5% |
Therefore, depending on the target currency, PayPal's total charge for currency conversion can be either 8.0% or 8.5% of the converted amount.
