By default, Paypal wants to do the foreign exchange conversion of your payment for you because Paypal pockets ~2.5% from your purchase, just like most credit cards would anyway. However, if you use a credit card that has no foreign exchange fees, you want to be billed in the currency of the seller when using Paypal on eBay for example. In Canada the Chase Amazon.ca Visa card has no forex fees and 1% cash back. In the USA and other countries there are similar cards available. Below are the steps to set up Paypal so that you pay in the seller’s currency on your credit card.
- Click the Settings gear icon in the top right corner of Paypal after logging in.
- Click Payments tab, and then click Manage pre-approved payments button.
- Click Set available funding sources link at the top right corner of the section illustrated below
- Next to the card you want to use with no foreign exchange fees, click Conversion Options link.
- Click the circle Bill me in the currency listed on the seller’s invoice as shown below. And then click Submit
- On the next window click Save
That is it. Now when you buy something on eBay you will have the option to select that credit card and the price displayed in the checkout on eBay should remain in the currency of the seller.