When shopping online on international websites and paying in non-native money, users often end up choosing PayPal as their payment option. And this is not surprising. The service offers numerous benefits for all parties—from the speed of transactions and ease of payments to a trustworthy reputation and security of transfers. One more indisputable advantage of PayPal is the currency conversion service.
PayPal currency conversion is important for enabling global accessibility, facilitating cross-border commerce, enhancing customer convenience, ensuring transparent pricing, promoting cost efficiency, mitigating risks, and delivering an exceptional user experience for customers in the payment ecosystem. Whether you’re a business expanding internationally or an individual simply making purchases abroad, PayPal’s conversion function ensures seamless and protected transactions.
However, there are certain nuances associated with money exchange in PayPal. How can you convert money to a different currency? Does PayPal convert currency automatically? How do you activate and adjust the exchange service? Follow our ultimate guide to learn everything you need to know about payment conversion when shopping online with PayPal.
Understanding PayPal’s Currency Conversion
PayPal’s money conversion feature is a payment system service that allows customers of any business to convert international payments into the currency of their choice, make all types of payments, and, as a result, transfer money abroad. To instantly maintain convenient and eligible payments, PayPal adheres to conversion regulatory standards and compliance requirements in various jurisdictions. The company closely observes anti-money laundering (AML) and know-your-customer (KYC) laws, providing users with a secure and trusted platform for international monetary operations.
In general, you might need to change currency on PayPal when you are dealing with foreign money—carrying through the transaction and making cross-border money transfers, visiting different countries, purchasing goods and services in foreign online stores, receiving payments from international clients or customers, etc.
With PayPal’s conversion, international payments, transactions, and purchases become more flexible, simple, and affordable—you get an effective solution for making and handling payments around the world.
Setting Up Currency Conversion in PayPal
How to convert currency on PayPal? Let’s take a look at all the steps to set up a money conversion.
Create or sign into a PayPal account
Go to the PayPal website and log in to your profile. If you don’t have an account yet, select “Sign Up,” choose the type of profile (“Personal” or “Business”), enter your email, generate a password, and enter all the required data.
PayPal account verification (if required)
PayPal may ask you to verify your identity to ensure reliable and protected services. When registering, you provide only basic information, but additional data will be required to complete financial transactions. This step is necessary to confirm that you are the one using the PayPal account and owning the financial data associated with it.
Link a bank account or credit card to your PayPal account
One more step to finish setting up your account before you can manage currencies is to go to your profile and select one of the available options—either link and verify your bank account or link and verify your debit or credit card to your PayPal account.
Set the main currency in PayPal
PayPal lets you pay and get paid in multiple currencies. If you are wondering how to transfer the currency in PayPal from USD to AUD, you need to change the setting in your Wallet section—there, you can add a new valuta, set the main one, and so on.
To add a currency, open your wallet, select the one you need from the list (for example, USD or AUD), and choose “Add a currency.” To set it as your main one, select the “More” option and click on “Make Primary.”
Converting Currency in PayPal
With PayPal, you can quickly and easily accept international payments and convert foreign currencies into/from your native ones. This can be done automatically or manually.
The service of automatic conversion of international payments allows you to receive money in your native currency for any transactions with foreign currencies. Funds are exchanged at the latest conversion rate and credited to your PayPal account in your local money.
Why does PayPal convert the currency automatically? The PayPal service automatically converts currencies in two cases: when you pay for goods or services online using PayPal and when you transfer funds from your balance to your bank account.
How do you change currency on PayPal manually? To transfer funds to another currency, open your wallet, click the “More” option next to the desired currency, and select “Convert.” After you choose a currency and set the exchange amount, you will see the latest conversion rate. Then select “Next” and choose “Convert Now.”
Tips for Optimizing Currency Conversion in PayPal
Here are a few recommendations if you are wondering how to convert PayPal currency and optimize this process.
- To avoid high conversion fees for a PayPal exchange, pay in foreign money instead of your own when purchasing goods or services in stores abroad. Always try to pay in the seller’s currency.
- Always check the real exchange rate to avoid hidden PayPal fees and evaluate the cost-effectiveness of the conversion. If you are wondering how to change the currency to USD in PayPal in the most profitable way, use the Currency Conversion Calculator, estimate the amount to be converted, and compare it with other exchangers.
- To accept and manage cross-border payments, consider keeping separate multi-valuta balances in your PayPal account and holding wallets with foreign money. By having non-native money in your PayPal account, you can arrange the exchange yourself at any time and avoid complicated conversions.
Other ways to change currency conversion in PayPal and avoid high exchange fees include linking a credit or debit card to your PayPal account that doesn’t charge fees for overseas transfers or opening a bank account, which you often use with PayPal.
Conclusion
PayPal continues to be one of the most trusted and reputable payment systems in the world. It offers numerous advanced features for the smooth implementation of international trade and money transfers worldwide.
Using the PayPal payment system with its currency conversion service greatly simplifies global financial operations and elevates cross-border transactions to a whole new level. You can receive and transfer money from anywhere in the world in seconds without much effort, but to optimize your PayPal’s currency conversion, it is worth considering some guides and tips.
FAQ
Does PayPal automatically convert foreign currency to USD?
Yes, it does. If your primary currency is chosen as the USD, you can accept foreign payments, which will then be converted into USD automatically.
Can I transfer different currencies on PayPal?
Yes, you can. Using PayPal, you can send and receive funds in multiple currencies—this payment system allows you to pay and get paid in different currencies all over the world.
Is it free to convert EUR to USD on PayPal?
No. If your transaction requires a currency exchange, the retail exchange rate (EUR/USD ratio) will be used, and additionally, PayPal will charge a 4.5% conversion service fee.
