On the other hand, PayPal never uses the average exchange rate, but rather uses its own exchange rate in order to make a profit. Such a circumstance may cause the cost is significantly high for sending money outside our borders.

As with financial institutions, PayPal applies a commercial commission on currency exchange and these are the company's income from carrying out this operation. The financial entities They usually charge in some cases various types of commissionsthe currency exchange commission is based on the purchase and sale prices that are modified on the real quote in favor of the bank, we would also add the usual management commission. In the case of PayPal, a commission of 3% applies to us in currency conversion for PayPal Business accounts. This means that if we want to spend an amount Or the other way around, if we want to convert dollars worth 100 euros, €103 will be deducted from our balance.

To facilitate the calculation of exchange rates at PayPal we can use their currency conversion calculator.

paypal currency exchange calculator

What commissions are used?

The banking transaction application usually charges commissions for currency exchange that are around 3% and 4% for the vast majority of payments. Such percentages for performing a currency conversion mean that paying with this type of tool has a moderately high cost. For example, in the case of American dollar The commission is set at 3%, but if we go to the euro this is 3.5%, while in the and in Japanese is 4%.

So, one of the keys to getting a lower commission is convert money from the balance deposited in the account to the currency what you want to achieve instead of allowing PayPal to carry out this management automatically. With this the commissions will be lower for all the currencies used.

In any case, if we withdraw an amount of money from our PayPal account and part of that money is deposited in our account in another currency, PayPal will make the change to the currency in which we have opened the account (in our case the Euro) automatically applying the relevant commissions (3% on the exchange rate stipulated by PayPal).

Are there risks?

But not everything is favorable when exchanging currencies in Paypal. There are certain risks associated, including:

  • Fluctuations in the exchange rate: The exchange rate may fluctuate rapidly and affect the value of the transaction.
  • commissions: PayPal may charge currency exchange fees, which may increase the total cost of the transaction.
  • Uncertainty: The future exchange rate cannot be predicted with certainty, so currency exchange may be uncertain.
  • Fraud: There is a risk of fraud when making online transactions, including currency exchange on PayPal. It's important to take precautions to protect your information and funds, such as verifying the recipient's identity before making a transaction and keeping your login information secure.

We must take these risks into account and carefully evaluate whether PayPal currency exchange is suitable for our needs before making a transaction. It is best to consult a financial advisor if we have questions about currency exchange or any other aspect related to our finances.

How to save or eliminate commissions on PayPal?

As you already know by now, if you want to make purchases with other currencies they will surely charge you a commission for it and the best thing you can do is take into account a set of alternatives so that you can save that fateful amount in one way or another. On the one hand, you can use the currency conversion option so that the bank is responsible for these additional costs, or you can use a prepaid virtual card, which are usually very common when you are traveling abroad or making online purchases so that you do not have to be aware of the commission that they are going to charge you. These cards are essential for these types of operations, so the following tips will be of great help to you.

Remove PayPal dynamic conversion

The PayPal dynamic conversion It is a utility that gives the user the green light to carry out transactions using their own currency. At first glance it may seem like a completely excellent idea, since it lets us know what the exact amount that will be charged to pay for a product or service will be.

However, this is actually a problem, since it is the application that performs the currency conversion using your own exchange rate, which is never beneficial for the client. Therefore, and as we have mentioned previously, the money that is lost varies between 3% and 4% of the amount paid.

The only way to correct this annoying problem is suppressing dynamic conversion and using methods to pay without any hidden commission behind. Right here below we are going to explain how to do it:

  • When paying for a product or service in euros (or any other currency), a button appears at the bottom of the screen where you can read “Currency conversion options”. By pressing it, it takes us to another location where we have to select how we want to make the transaction, whether in our own currency or in the currency of the destination country. We choose the latter. Finally, we can state that the currency exchange will be carried out by our bank and not PayPal, at the same time that a message appears that expresses the following: “The card issuer will determine the exchange rate and fees that may apply”.

remove paypal dynamic conversion

Consequently, from this moment It will be the bank itself that applies the relevant commissions in transactions made through PayPal that involve a currency conversion. This will lead to quite considerable savings in our daily lives. Although it is recommended that Let's check the currency exchange commissions at our usual financial institution since these types of rates usually vary throughout the year and we may encounter more than one surprise.

Cards with a good exchange rate on PayPal

But we also have to say that if we enter the number of a traditional card in this online transaction application, we will continue to be charged commissions of around 3% every time we change currency. However, there are cards that are designed to be used expressly outside the euro zone and that allow us to pay in practically any type of currency. without losing money thus. Of course, they can be used on PayPal, saving us a lot in our checking account.

These cards work by loading them with money little by little, they are prepaid and their exchange rate is generally the interbank. Some models are Revolut, BNEXT or N26. They all have electronic banking and mobile applications so that we can follow the movements of the account, the purchases made and the balance at any time. Furthermore, they allow NFC payment through your mobile phone, as happens with debit and credit cards from regular banking entities.


In the case of Revolut The interbank exchange rate is applied, which is the commission paid by each financial institution for this type of operations without applying any surcharge, it usually varies between 1% and 2%. with the cards BNEXT Only the official exchange rate is applied and no commission is paid for currency exchange, neither at the time of making a purchase nor even with cash withdrawals at ATMs outside the European Union. The card N26 On the contrary, it does not charge any commission on purchases made with foreign currency but does apply a 1.7% commission on cash withdrawals at ATMs outside the European Union (in the case of N26 Premium You & Metal accounts it would not apply. this commission).

In short, if we intend to carry out a currency exchange within PayPal and we want to save all the commissions incurred, what we have to do is disable dynamic conversion of the application itself and use a card that does not charge us for transactions we make outside our borders.

Tips to save commission on purchases with other currencies

When making payments with other currencies, special care must be taken so that we are not charged abusive commissions that can be quite maddening and when you thought you had paid for a bargain, you finally find that the final price of the product has not been as cheap as you thought from the beginning.

Thus, it is always preferable to choose the establishment where They offer us to pay with the currency of our country. In this way we will save any type of cost and it will be the store itself who will have to apply the pertinent currency changes without affecting us. However, in the event that we have to face the local currencyis where the problems of paying commissions begin, since we have to review the extra amount that they are going to reduce, and this is when the possibility of carrying out the transaction with a card that does not charge commissions comes into play.

However, when you pay in a country that does not belong to the European Union you should know that there is better consumer protection, so it is preferable that the online establishment where you buy accepts purchase cancellation. If not, it is best to find a seller who is willing to refund your money.

It is also necessary to know that you can do checks and simulate currency exchange in PayPal to see how much the final price will be and if it is worth the purchase. Also, you can always do the conversion at the bank in case you can save on commission.

How can I send or accept a payment in another currency?

If necessary, we have no choice but to use the payment or shipping in another currency We must do it in the following way.

If we want to send a payment in another currency the steps are:

  • We are going to Send and request money.
  • We introduce into name wave Email address of the recipient and click on Following.
  • We select Send money to a friend or family member either Pay for an item or service.
  • We enter the amount and select a currency, to give it to Continue.

When we receive a payment in another currency we have several options within PayPal. These options entail several situations, that is, two ways of accepting it and one of rejecting it, what happens is that, when accepting it, at least one of them has a commission and the other we must be prepared to be able to function with a foreign currency. These are the three options:

  • Accept payment and convert to the currency of your main balance. This type of exchange includes a fee, as we saw above, from PayPal.
  • Accept payment and open a balance for that currency. The money will be credited to our account, but in the currency in which we received it.
  • Reject paymentso the money will be returned to the sender.

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