How PayPal’s exchange rate works
PayPal converts at a transaction exchange rate: its base rate plus a spread. For a US account the spread is 4.00% when you pay or send money in another currency, and 3.00% when PayPal converts money you receive or your balance (PayPal Consumer Fees, PayPal Merchant Fees). There is no separate “conversion fee” line, which is why most people never notice it.
This calculator compares PayPal’s rate with the European Central Bank reference rate, a standard mid-market benchmark, so the difference shows up as dollars.
| Convert $500 | Fees | Fee rate | You keep |
|---|---|---|---|
| To euros · paying | $20.00 | 4.00% | $480.00 |
| To euros · receiving | $15.00 | 3.00% | $485.00 |
| To pounds · paying | $20.00 | 4.00% | $480.00 |
| To Canadian dollars · paying | $20.00 | 4.00% | $480.00 |
PayPal Currency Conversion: What You Lose on Every Switch
Every conversion loses the spread, and it adds up when money goes back and forth. Receive €1,000, convert it to dollars (3%), then pay a European supplier in euros (4%) and you’ve given up roughly 7% for two clicks. Holding a balance in the currency you’ll spend avoids the second conversion.
PayPal Conversion Rate vs the Mid-Market Rate
The mid-market rate is the midpoint between what banks pay and charge each other, the number you see on Google. PayPal’s rate is that, minus 3–4% in your direction. The calculator’s notes show both in the other currency, so you can see exactly how many euros, pounds or pesos the spread costs.
Rates move every day. We use the ECB reference rate dated in the sources below; PayPal shows its exact rate before you confirm, and that screen is the one to trust.
PayPal Currency Conversion Fee: 3%, 4% and When It Applies
- 4% when you pay a seller or send money in another currency.
- 3% when you receive a payment in another currency and PayPal converts it, or when you convert a balance.
- 0% when no conversion happens: pay in your own currency, or keep the foreign balance.
