When you purchase with Paypal in a currency other than your own Paypal will perform the currency conversion for you. What is rather unclear is that the rate they charge is often considerably higher than that of your bank/card issuer and it is usually cheaper for them to perform the conversion for you. To avoid this higher charge you can change your Paypal settings so that you are billed in the currency of the seller and here's how to do it:-

  • My Account (the icon top right)
  • Profile & Settings
  • My Money
  • My pre-approved payments
  • Update
  • Try the 'pre-approved payment plans' OR See Available Funding Sources (or Set Available Funding Sources)
  • Conversion Options (for the card you'd like to change this option)
  • Bill me in the currency listed on the seller's invoice

The differential in Paypal's conversion can apparently be as much as 7% so this simple setting change is well worth it.