PayPal · PayPal User Agreement

Currency Conversion Fees and Exchange Rate Markup

Medium severity
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What it is

If PayPal converts currency, it will do so at the transaction exchange rate we set for the relevant currency exchange. The transaction exchange rate is adjusted regularly and includes a currency conversion spread applied to an exchange rate sourced from a financial data provider. The currency conversion spread for any given currency exchange will be as set out in our fees pages and will include a charge above the base exchange rate we obtain.

Why it matters

Currency conversion markups can significantly erode the value of international transfers, especially for frequent cross-border transactions, and the spread is not always prominently disclosed at the time of transaction.

Consumer impact

PayPal's User Agreement significantly affects your financial rights and access to funds — PayPal can place holds on your money for up to 180 days and limit or suspend your account at its discretion. You waive the right to participate in class action lawsuits and must resolve all disputes through individual binding arbitration, which is generally more costly and less accessible for small-dollar claims. You can opt out of the arbitration agreement by sending a written notice to PayPal's Legal Department at 2211 North First Street, San Jose, CA 95131 within 30 days of first accepting the User Agreement.

Applicable agencies

  • CFPB
    The CFPB regulates remittance transfer disclosures under Regulation E and has enforcement authority over payment processors that fail to adequately disclose currency conversion costs.
    File a complaint →

Provision details

Document information
Document
PayPal User Agreement
Entity
PayPal
Document last updated
March 24, 2026
Tracking information
First tracked
March 6, 2026
Last verified
April 9, 2026
Record ID
CA-P-002580
Document ID
CA-D-00044
Evidence Provenance
Source URL
Wayback Machine
SHA-256
787aedff80f89f2d9da4fd79756bbd226f8a5338c9e19c15b2a2fa0d01f59a90
Verified
✓ Snapshot stored   ✓ Change verified
How to Cite
ConductAtlas Policy Archive
Entity: PayPal | Document: PayPal User Agreement | Record: CA-P-002580
Captured: 2026-03-06 20:26:28 UTC | SHA-256: 787aedff80f89f2d…
URL: https://conductatlas.com/platform/paypal/paypal-user-agreement/currency-conversion-fees-and-exchange-rate-markup/
Accessed: April 14, 2026
Classification
Severity
Medium
Categories

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