PayPal applies its own exchange rate — which includes a markup above the base market rate — when converting currencies, and users agree to these rates by using the service, with full rates disclosed on separate fee pages rather than in the main agreement.
When you send or receive money in a foreign currency, PayPal applies its own exchange rate that includes a markup — meaning you receive less than the mid-market rate — and the specific percentages are disclosed only on separate fee pages rather than in the main agreement you sign. For frequent international transactions, this markup can result in materially higher costs than alternative payment methods.
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Compare across platforms →Currency conversion markups can significantly increase the effective cost of international transactions, and routing users to external fee pages rather than disclosing rates in the main agreement makes it harder for consumers to understand the true cost before transacting.
(1) REGULATORY FRAMEWORK: Currency conversion fee disclosures are governed by Regulation E (12 CFR Part 1005.31) for remittance transfers over $15, which requires upfront disclosure of exchange rates and fees before the consumer authorizes the transaction. The CFPB's Remittance Transfer Rule applies when PayPal facilitates international transfers. FTC Act Section 5 applies if conversion costs are not adequately disclosed. EU users are separately protected by the EU Payment Services Directive (PSD2) but are outside scope of this agreement. (2)
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