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 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.