What are PayPal currency conversion fees?
How to pay zero fees on money transfers and avoid bad exchange rates.
When you send money abroad using PayPal, you pay for goods in foreign currency. You, for example, want to pay for goods in USD, but your currency is EUR.
PayPal has bad currency exchange rates.
When you exchange currencies using PayPal, the exchange rate can be +4% below the mid-market rate.
You will face PayPal currency conversion fees, when you exchange currencies, however, you can avoid PayPal currency conversion by converting with your Credit / Debit Card. In addition, you could choose completely free alternatives to PayPal by using discount brokers for international money transfers.
A great alternative for foreign currency transactions are providers for remittances such as TransferWise, TransferGo or
In our example you save up to 90% fees compared to PayPal.
Example: Send €1000 to the USA.
Exchange Euro to US-Dollar using PayPal and free PayPal alternatives.
PayPal exchange rate fees.
Attention! The PayPal Exchange Rate is low. Compared to the TransferGo offer below you lose 43,65 USD. These fees are paid on your end, when you are using the PayPal currency conversion.
Additional PayPal Fees for the recipient.
In addition to the PayPal currency conversion fees, there are also transfer fees of $0.30 + 4.4% for an international online transaction.
This means the recipient is just receiving 1.026,22 USD instead of 1073,77 USD. 47,55 USD PayPal transfer fees have to be paid here.
In this case, the transfer with PayPal is resulting in 91,20 USD shared fees, because PayPal is charging on both ends. This is clearly too much.
PayPal vs. TransferGo
CompareTransfer is the best alternative to PayPal Currency Conversion. In our price comparison, you will find the cheapest offers to remit online to bank accounts abroad.
Free alternative to PayPal: For a bank transfer, which is taking a maximum of 4 days, you will receive the offer of -0.06€. That is better than free. Especially because the PayPal Transfer is so expensive.
For a little bit more money you also can for example search for transfers which are delivered in 30 minutes.
How to save money on the PayPal currency conversion?
How to save on the PayPal currency conversion?
When you transfer 1000€ from France to the USA, you can save 43,65 USD PayPal currency conversion fees by converting currencies on your credit card to avoid PayPal conversion fees.
1) When paying for a PayPal FX-transaction you should choose during the checkout to get billed in the foreign currency using the currency conversion of your credit card.
2) By using your payment cards for currency conversion, exchange rates of Visa and MasterCard will be used for currency conversion and this is ideal compared to PayPal. Additional fees, depending on the card issued, may applie.
3) For a Credit Card with free Currency Conversion, we would advise you to use.
By avoiding PayPal currency conversion you will save 43,65 USD.
The PayPal transfer fees of 47,55 USD still applies and will be deducted from the amount the recipient is receiving.
The TransferGo Alternative is completely free compared to PayPal.
Conclusion: For currency conversion and foreign transactions you should not rely on PayPal, because there are better and free alternatives.