Personal Finance

Way to avoid using Paypal Currency Conversion (for Chase no 2.5% exchange rate CCs)

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  • Jun 7th, 2019 3:23 pm
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[OP]
Banned
Nov 12, 2006
2715 posts
1630 upvotes
Toronto

Way to avoid using Paypal Currency Conversion (for Chase no 2.5% exchange rate CCs)

Just want to post this for people to save some money.

When purchasing something with foreign currency, Paypal default payment option is to use Paypal's own currency conversion then bill your CC's source currency.
This can go against you if you have a credit card that does not have 2.5% fee (i.e. Chase Sears, Amazon, Marriott CCs).

To change your currency default option, do the following:
My Account -> Profile -> My Money -> My preapproved payments -> Update -> See Available Funding Sources (or Set Available Funding Sources) -> Conversion Options (for card you'd like to change this option)-> Bill me in the currency listed on the seller's invoice -> Submit
Hope, it helps.

Source: https://www.paypal-community.com/t5/Sen ... uage=en-gb
235 replies
Jr. Member
Jul 20, 2013
196 posts
21 upvotes
Better if you're located in the Metro Vancouver area, just drive down to Point Roberts and open up an account with one of the two smaller banks with presence there.

I chose Banner Bank as they actually reimburse CONUS ATM surcharges. Pretty nifty feature when I need USD cash.
Newbie
Feb 6, 2009
86 posts
31 upvotes
Thanks! was trying to find the option a few week back. I like how they bury it, making it harder to find.
Deal Expert
User avatar
Dec 11, 2005
19452 posts
2051 upvotes
You can also easily set this on a per-credit card basis.
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
Sr. Member
Mar 17, 2008
661 posts
162 upvotes
1- For a Capital One Aspire Travel World card, would you guys also recommend to choose the "Bill me in the currency listed on the seller's invoice." option?

2- But I guess that I should just research and get one of the following Chase Sears, Amazon, Marriott CC, and use it for all my foreign transactions?
Deal Fanatic
Sep 9, 2003
8339 posts
1907 upvotes
Burnaby
PayPal's rate should be pretty similar to exchange plus 2.5 that capital one charges.

If that is the case, you might want to let PayPal do the conversion as you do not earn points at capital one on the 2.5 exchange fee (so you end up with fewer points on the same dollar value)
Sr. Member
Oct 21, 2005
604 posts
77 upvotes
London
crimsona wrote: PayPal's rate should be pretty similar to exchange plus 2.5 that capital one charges.

If that is the case, you might want to let PayPal do the conversion as you do not earn points at capital one on the 2.5 exchange fee (so you end up with fewer points on the same dollar value)
I always find paypal currency conversion rate is crazy. They may state a 2.5% fee but their reference currency exchange rate could be totally in their favour. Get a amazon.ca credit card (or similar) with no currency conversion fee and use the advise from OP.
Member
Dec 23, 2005
235 posts
34 upvotes
Scarborough
Thanks OP
Deal Guru
User avatar
Jun 1, 2006
12268 posts
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What if you have a balance in your Paypal Account and want to withdraw US funds into $cdn? Any way to get a better rate?
Have a nice day!


Newbie
User avatar
Mar 17, 2014
82 posts
8 upvotes
dtrader69 wrote: Just want to post this for people to save some money.

When purchasing something with foreign currency, Paypal default payment option is to use Paypal's own currency conversion then bill your CC's source currency.
This can go against you if you have a credit card that does not have 2.5% fee (i.e. Chase Sears, Amazon, Marriott CCs).

To change your currency default option, do the following:
My Account -> Profile -> My Money -> My preapproved payments -> Update -> See Available Funding Sources (or Set Available Funding Sources) -> Conversion Options (for card you'd like to change this option)-> Bill me in the currency listed on the seller's invoice -> Submit
Hope, it helps.

Source: https://www.paypal-community.com/t5/Sen ... uage=en-gb
Awesome thanks! I didn't know this could be done. Most of the purchases I make using Paypal are relatively small and I did notice the exchange was unusually high, not super high but it seemed like it was in between 2.5-3.5% (my calculation may be off). For the longest time I couldn't figure out why the conversion was so terrible or if I was being charged some sort of special Ebay fee. I assumed it was Visa doing the conversion.
[OP]
Banned
Nov 12, 2006
2715 posts
1630 upvotes
Toronto
no problem guys, glad i can help.
Jr. Member
Jan 2, 2009
157 posts
41 upvotes
Ontario
dtrader69 wrote: Just want to post this for people to save some money.

When purchasing something with foreign currency, Paypal default payment option is to use Paypal's own currency conversion then bill your CC's source currency.
This can go against you if you have a credit card that does not have 2.5% fee (i.e. Chase Sears, Amazon, Marriott CCs).

To change your currency default option, do the following:
My Account -> Profile -> My Money -> My preapproved payments -> Update -> See Available Funding Sources (or Set Available Funding Sources) -> Conversion Options (for card you'd like to change this option)-> Bill me in the currency listed on the seller's invoice -> Submit
Hope, it helps.

Source: https://www.paypal-community.com/t5/Sen ... uage=en-gb
Thanks for the tip. This really helps.
Deal Addict
Dec 16, 2012
2777 posts
544 upvotes
Vancouver
Hey

Anyone have this issue with paypal? Yesterday I bought something on ebay and I wanted to have it charged to my CC through paypal yet it keeps wanting me to use my paypal balance to pay it off. I tried to change the payment type in the checkout but it thought I had no CC(though I have my amazon card hooked up) and even though it gave me an option to add a credit card(which I did) it still would only allow me to pay though my balance.
Deal Addict
Sep 26, 2013
3725 posts
477 upvotes
MONTR
xiaobao wrote: Hey

Anyone have this issue with paypal? Yesterday I bought something on ebay and I wanted to have it charged to my CC through paypal yet it keeps wanting me to use my paypal balance to pay it off. I tried to change the payment type in the checkout but it thought I had no CC(though I have my amazon card hooked up) and even though it gave me an option to add a credit card(which I did) it still would only allow me to pay though my balance.
yes it seems that paypal wants you to use up your balance first and the remaining on CC or bank account.
Deal Addict
Dec 16, 2012
2777 posts
544 upvotes
Vancouver
nomdesplumes wrote: yes it seems that paypal wants you to use up your balance first and the remaining on CC or bank account.
hmm can't remember happening before but that sucks. This is why I don't try to have too much money in PayPal it just sucks it takes so much money to get a free transfer out.
Deal Addict
User avatar
Jul 29, 2013
1436 posts
1091 upvotes
dtrader69 wrote: no problem guys, glad i can help.
Do not forget the ladies on the site!!!!

Thank you for the information and the clear steps to implement it.
Deal Expert
User avatar
Dec 11, 2005
19452 posts
2051 upvotes
nomdesplumes wrote: yes it seems that paypal wants you to use up your balance first and the remaining on CC or bank account.
This isn't the worst idea anyway since Paypal is giving you no interest in that money at all. If you have a paypal balance in your account for more than two months then you are already behind vs. paying 2.5%, due to opportunity cost.

The best bet is of course to always withdraw money from paypal as soon as you get it.
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
Deal Addict
Dec 16, 2012
2777 posts
544 upvotes
Vancouver
JUnit wrote: I think Paypal removed the fees for transferring out: https://www.paypal.com/cgi-bin/webscr?c ... 961ea39639

There is a $15 minimum withdrawal though.
sweet, I did not know that. I did a transfer in September and I was still charged a transfer fee. This is great now I don't have to wait till I get $150 now to transfer out. I much prefer to not have any money in my paypal account and just charge it to my CC when I need to make a payment.

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