How much is PayPal conversion fee
PayPal's currency conversion fee is usually 3% to 4% above the base exchange rate, and it is built into the rate PayPal applies rather than shown as a separate charge.
Within PayPal pricing, conversion is treated as a foreign exchange markup, because PayPal sets its own transaction exchange rate instead of using the mid-market rate. At a 3% to 4% markup, converting $1,000 costs roughly $30 to $40.
- Standard conversion rate: PayPal's India consumer fee page lists 4.00% for general currency conversions, including those involving the euro and the Russian ruble.
- Lower markups: Rates of 3% to 3.5% apply in some regions or transaction categories, such as certain merchant setups or payouts in local currency.
- International transaction fees: The conversion fee is charged on top of any international transaction fee, which can add another 1.5% to 5% depending on whether you are buying, selling or sending money.
The total cost of a cross-border PayPal payment depends on whether you are paying friends and family or withdrawing business income, which two currencies are involved, and whether you pay with a card or your PayPal balance.
- PayPal: A business in India can use PayPal to receive payments from abroad, with currency conversion fees applied when the funds are converted.
- Skydo: An RBI-authorised cross-border payments platform for Indian freelancers, exporters and small businesses, used to receive payments from international clients into an Indian bank account.