[UPDATED]Change Paypal conversion options to avoid high currency exchange fee

Paypal tends to use its own conversion process to bill in the currency of your country the rate of which is much higher than it really is.

To avoid this unwanted loss, you could change Paypal conversion options to allow Paypal to bill in seller’s currency. In this option, your card issuing bank will have to handle the conversion while mostly the rate is much reasonable SORT OF.

The steps are

  1. Login to your Paypal account
  2. Click Settings on the top-right of the page left of Log Out
  3. Select PAYMENTS tab
  4. Click Manage pre-approved payments
  5. Click Set Available Funding Sources on the top-right of the list

In the page, if the link Conversion Options shows up on given card, you can choose either way to convert currency.

Alternatively, during one transaction, the link View conversion options might show up when reviewing payment method as well.


Jul 29, 2017 @ 14:15

43 thoughts on “[UPDATED]Change Paypal conversion options to avoid high currency exchange fee”

  1. Set Paypal Currency Conversion Options:

    My Account Settings Page
    “Payment settings> Preapproved payments”

    “My preapproved payments” Page:
    “Set Available Funding Sources”

    “Manage Funding Sources” Page:
    “Conversion Options”

    “Conversion Options” Page
    “Bill me in the currency listed on the seller’s invoice.”

  2. Youre the bomb, took me agies to find. Why did they have to make it so difficult. Ebay and paypal go out of their way for a bad user experience.

  3. Despite having this option set, Paypal is defaulting to do the currency conversion on all my “send money” transactions. Worse, when I use the “Other Conversion Options” route, I can set it back to “by Card Issuer”, Paypal appears to accept this but when it puts me back to the payment screen, nothing has changed. I tried a transaction and sure enough, Paypal did the conversion even though I’d said no to that.

    Anyone else notice this problem ?

    1. Follow up… Paypal acknowledged a problem (at least in UK). They did a workaround by temporarily marking my credit card in the foreign currency whilst I did the transactions. Hopefully this problem gets fixed soon.

    2. yes, this problem been over a week or more!!! I also have the same case when I try to pay at Ebay, Paypal would only accept its own conversion rate, even though the default is the rate of the card’s issuer!!!

    3. Same here, this action is done on purpose and it´s a paypal rip off. It force you to use their currency conversion which is abviously a lot higher than the one from your card issuer. You loose few bucks but they make hundred of thousends (if not milions) over this scam. They do same thing on eBay: when you try to change currency conversion before completing the purchase a window pops up saying ” we are experiencing some technical problems, please try again later”, I see this comment appearing since over a week, they aren´t experiencing any technical problems while you´re paying using their conversion options though. It´s obvious it is done on purpose.

  4. Answer from PP:

    “in October 2016 PayPal have introduced new payment method and at the moment the feature to be ‘Billed in sellers currency invoice currency’ is not available at the moment. We hope to have this feature operating soon again but we have no set date as of yet. We will try our best.”

    WTF – it is not a solution

  5. Same problem here, forced their own currency despite the change I made according to article.

    We need to escalate it everywhere, thy are in the process of “seeing” the effect of it!
    Maybe they’ll alleviate it for some “hot” countries (like transactions between EUR & GBP) and leaving the rest to dust!

    Those greedy….

  6. I attempted a purchase on Ebay via the “Other Payment options” to get directed to PayPal own website for payment.
    The screen showed the amount in GBP not converted (the “other conversion options” is where you select it) but I get an error message saying you cannot use this credit card. Then use the option to use PayPal’s currency conversion (not notice provided of the ~4-5% fee) and no more error message.

    PayPal is now blocking any attempt to pay in the sellers currency and is enforcing a non-disclosed ~5% marked up on the currency converter.

    In this example actual AUD to GBP exchange rate is .59429 vs Paypal’s .570303 around 4.2% mark-up that is NEVER disclosed during the purchase.

  7. I seem to have a work around. You need to use IE or maybe Chrome (untested) but NOT EDGE.
    On eBay click change at the payment screen then click the exchange rate link next to your card and you should see other conversion options allowing you to change it to use sellers currency (link is not showing in EDGE Browser)

  8. Problem still exists…….It would appear that Paypal is not in a hurry to fix this problem due to the large windfall they are getting from unsuspecting customers. If a customer does not see the problem, then Paypal makes an extra 4-5%.

  9. Same here. Just paid over 300 GBP with their crazy conversion rate to EUR. I wrote to their customer support, I hope they will compensate it. What is your experience ? In fact they just have stolen me arond 15 EUR 🙁

  10. Please contact PayPal and tell them what the issue is. They will resolve it in 24 hours. Because i explained them what was happening, they returned me 10 EUR which more than payed all the loss i had because of their conversions. I hope for all of you to get the money back too.

  11. Hi,

    The date is 7th December and this is still happening. I’ve emailed them and just get an automated response which I’m supposed to reply to in order to get a personalized response, but been waiting for 2 days and still not reply on this. How did you guys get your refunds of extra conversion costs? Did you have to phone in?

    1. This is answer from PayPal facebook page. In official page no custom support only MACHINE answers.
      This is CRIMINAL and SCAM:
      “The currency conversion options have changed over the last few months and it is no longer possible to allow your card issuer to do the conversion.”

  12. Hi Peter,

    No, I just wrote them the message through their messaging system (that is not via email). After day or two they sent me money back.


  13. yes! I have this problem for more than a month! Paypal converts at its own conversion rate, even though I have another option set in the settings! I contacted them about the issue, but no solution 🙁 Very disappointing approach!

  14. I just noticed it today when I checked my credit card statement and wondered why it was a bit high. I have made about 5 foreign transactions before I caught them. They have to refund me because they forced me to use their horrible conversion rates instead of my credit card’s conversion rate. I will give them a call tomorrow and update soon.

    I’m really angry right now…

  15. 24.12.16 problem still there. Once I wrote them via “reply to the e-mail” way — they called me and as it lookde manually did some accomodations to my account so I was able to send 1 payment. And that’s it. Now I have to write or call them EVERY time I need to send a payment, that includes convertion. Are they stupid and can’t push couple buttons on the keyboards to eleminate the problem? It is soooo annoying.

  16. Same here, I have set option “Bill me in the currency listed on the seller’s invoice.” but Paypal converts at its own conversion rate, even though I have another option set in the settings!

  17. Yes yes! I am also facing the forced-to-use-Paypal’s-rate problem. Paypal is effectively scalping the arbitrage of the rates. This is criminal.

  18. Same problem here, well they may decided to start sharking people that want to use PayPal with their high exchange rates… I can’t find any other reason for this.

  19. This problem has been around for more than a month!Wrote many emails to PayPal, even recorded payment process with my phone and got only automated replies telling me how to send money if I were a dummy or complete idiot. In the last 2 weeks they did not reponse, at all!

  20. They moved that option to the individual payment pages. So the currency isn’t card-based – it’s now transaction based.

  21. This is the part of reply I got from paypal

    “For your information, there is currently a known issue with the system which may charge PayPal user twice; PayPal conversion rate and bank conversation rate. Therefore, the system now set PayPal conversion rate as a default option to prevent users from being charge twice.

    We know this may be frustrating and we’re working hard to fix the problem immediately. We apologize for any inconvenience caused by this and thank you for your patience.

    In the meantime, I could personally assist you to change the currency of your card from xxx to your preferred currency. Please drop us an email regarding to your currency that you would like to select.””

  22. I just paid an invoice and set the transaction fee to use my card’s conversion. The invoice item initially showed with a CAD amount and a link indicating the USD->CAD conversion rate. I clicked the link and was able to to select a different conversion option. The receipt I received from PayPal indicates that I paid in USD.

    I use the Amazon.ca card which does not charge a conversion fee for foreign exchange. My PayPal settings specify that the invoice currency should be used but as noted in this thread that setting now seems to be ignored. However, changing it on the invoice item does appear to work.

  23. How can this still be a problem? I filed a bug report to paypal several months ago, and still nothing has happened. Very sneaky way of tricking people of some extra money!

  24. I just placed an order on eBay and it seems that I get billed in the listing/seller currency now 🙂 Hope they’ve fixed this for good!

    “PAID : AU $1.49 with PayPal” (my card is in SGD)

  25. Not working for me. I telephoned PP on the 17th of April 2017 and they acknowledged that there was a bug in the system and they will contact me by email in the next few days.

  26. I made a payment to a company in Japan, and thought something was different because I no longer had the option of paying in JPY (only USD was showing). So I did the rate conversion on Google and paid the amount. In the past, I was always billed at the merchant’s currency. Almost immediately, I received an email from the merchant stating I was short.

    After looking up this issue, I had to surf around Paypal’s settings to find the conversion option using my bank’s rate. They did the option in some prepayment/wallet area. I had to make up the small difference but hopefully it was at my chosen option instead of Paypal’s rates.

    It’s unbelievable that a massive company like PayPal couldn’t find a programmer to fix this simple issue. There should be a class-action suit charging them with imposing hidden fees.

  27. This is answer from PayPal facebook page. In official page no custom support only MACHINE answers.
    This is CRIMINAL and SCAM:
    “The currency conversion options have changed over the last few months and it is no longer possible to allow your card issuer to do the conversion.”

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