Does PayPal convert currency

Yes, PayPal does convert currency, either automatically when you pay in a foreign currency or manually when you convert money held in your PayPal balance.

• Automatic conversion: If you buy something priced in another currency, PayPal converts the amount from your own currency into the currency the seller uses.
• Manual conversion: Inside your account, open the Wallet page, select the More icon beside the currency you hold, and choose Convert currency to switch it to another currency.

Converting through PayPal has a cost. PayPal applies its own exchange rate, which adds a percentage on top of the base wholesale rate. For standard consumer transactions this markup is typically around 3% to 4%. PayPal also provides a currency calculator in the Wallet section that shows the exchange rate before you convert.

PayPal's consumer fee page notes that certain transactions carry no fee when no currency conversion is involved, so the conversion itself is often where the extra cost comes from. A general PayPal overview of fees is useful to read alongside the rates shown at checkout.

• Let your card issuer convert: When paying with a linked card, you can often choose to have your bank handle the conversion instead of PayPal, and then compare which rate is lower.
• Watch recurring payments: Users on Reddit report that subscriptions and other automatic payments can sometimes override the conversion option they selected, so check these charges on your statement.
• Check the rate first: Use the PayPal currency calculator to see the rate being applied before confirming a payment or a balance conversion.