PayPal · PayPal User Agreement

Currency Conversion Spread Retained by PayPal

Medium severity
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Consumer impact (what this means for users)

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.

How other platforms handle this

Bumble Medium

Please be aware that if you subscribe to services for a term (the "Initial Term"), then the terms of your subscription will be automatically renewed for additional periods of the same duration as the Initial Term at Bumble's then-current fee for such services, unless you cancel your subscription in ...

eBay Medium

We charge sellers for the use of our Services. In some cases, where buyers receive supplemental Services such as authentication or storage Services for items in certain categories, we may also charge those buyers for such supplemental Services. The fees we charge sellers for using our Services to se...

Hinge Medium

If you purchase a subscription, it will automatically renew until you cancel, in accordance with the terms disclosed to you at the time of purchase, as further described below.

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Why it matters (compliance & risk perspective)

The currency conversion spread is an undisclosed profit margin that PayPal earns on every international transaction, and the exact spread percentage is not fixed in the agreement — it can be changed without meaningful advance notice.

View original clause language
When you make a payment using your PayPal account in a currency you have not selected as a preferred currency, or the payment requires a currency conversion, PayPal will use a transaction exchange rate. The transaction exchange rate is adjusted regularly and includes a currency conversion spread applied to the base exchange rate.

Applicable regulations

DMA
European Union

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-002292
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-002292
Captured: 2026-03-06 20:26:28 UTC | SHA-256: 787aedff80f89f2d…
URL: https://conductatlas.com/platform/paypal/paypal-user-agreement/currency-conversion-spread-retained-by-paypal/
Accessed: April 28, 2026
Classification
Severity
Medium
Categories

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