Currency Conversion on Withdrawal

Herbalicious
New Community Member

 Received payment in USD. Want to deposit to my linked USD account at Canadian bank. I want to use the funds to make USD purchases. Paypal is forcing withdrawal in Canadian dollars. Is there any way to avoid the conversion?

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8 REPLIES 8

itznat
New Community Member

I have the same problem. I recieve funds in USD and I opened a USD bank account at my Canadian bank specifically so that I wouldnt have to convert to Canadian dollars. But when I withdrew from wallet, it still automatically converted to Canadian and my bank refused the transaction and the money returned to my wallet but this time in Canadian dollars. How do I withdraw USD to my USD account?

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PayPal_Dustin
Moderator
Moderator

Hi Herbalicious and itznat,

 

Welcome to the PayPal Community Forum! That's a good question. All PayPal withdrawals are converted to the local currency. The system can't detect the currency type of a bank account, only the country of the bank account. To withdraw in USD a US bank account is required. Hope that helped.

 

- Dustin

 

 If this post or any other was helpful, please enrich the community by giving kudos or accepting it as a solution.

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williamhuang
Contributor
Contributor
This is not a solution, and it doesn't help.
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williamhuang
Contributor
Contributor

I'm afraid it's not that the system can't detect target account currency. It's that Paypal refuses to release funds as is without conversion.

 

The problem / criminality is that Paypal is kidnapping my funds and asking for a conversion fee as ransom, otherwise it's not going to release my funds. Paypal is not releasing my funds if I refuse to pay the conversion fee. That's the problem. Paypal refuses to release my funds as is without conversion, as in a kidnapper refuses to release hostage intact if the asked ransom is not paid.

 

And Paypal tries to hide this by saying excuses such as "can't detect target bank account currency..." and it tries to hide this so deep in the user agreement that no one notices it until "kidnapped".

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PayPal_Michelle
Moderator
Moderator

Hello williamhuang,

 

I'm so sorry to hear that you've had a negative experience and I hope this information helps to better clarify:

 

  • There are no conversion fees to carry multiple balances in your PayPal account balance. The fee only occurs when we have to exchange one currency to another. This fee is based on the current exchange rates and the cost of processing the exchange itself. This is standard functionality among all financial institutions that allow an account to hold multiple currencies. You will find our conversion rates competitive with most major banks and payment processors. 
  • Due to regulations and laws set on financial institutions operating internationally, we can only move money in and out of our system in the currency of the account's registered country. We understand that many banks allow customers to carry more than one currency, but the only access PayPal has to any bank account is the bank name and account number. Allowing PayPal access to the terms set between you and your bank would actually be a privacy violation for the bank. 

I understand that the fee may create an inconvenience, but it is a part of the operational costs that allow us to provide our service internationally. Without it, each country would be limited to buying and selling only in their own country and currency. I hope this helps and thank you for voicing your concerns here on the Community Help Forums. 

 

Thank you,

 

Michelle

 

If this post or any other was helpful, please enrich the community by giving kudos or accepting it as a solution.

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guspaka
Contributor
Contributor

This is absolutely not true.

There is only one reason that paypal start to exchange the currency to local one when we make withdraw.

Example: 

my account is in USD, currency exchange of paypal is 1.6. I can exchnage USD on 1.66.  On $600 withdrawing I lose 22$ (which is a profit for paypal)

10 withdrawing per month and I am loosing 220$ (which is a profit for paypal). Billions of more profit for paypal.

My lost is not stop here. I need money in USD to buy items for reselling, which mean after the money arrived in my local currency I have to buy USD again.

Paypal did not notify nobody about the changes. It is criminal action from their site to robbing the people.  The only action I can offer is the biggest sellers to  file a lawsuit against paypal.

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guspaka
Contributor
Contributor

After some conversations with customer support my account was returned in regular standing. I can withdraw money in my account's currancy.

Contact customer service. If this continue all of you have to make complain in european customer center site. Paypal can not force his clients to exchange our money in their bank on awful currancy rates.

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williamhuang
Contributor
Contributor

Really? Well, let's look at some answers I got from Paypal CS.

 

I first asked if a manual transfer is possible so that my AUD gets to my bank account as is without conversion. I got

Selection_112.png

 

I then questioned if it is possible for Paypal to issue a cheque and got

Selection_113.png

 

And this one says if the fund is withdrawn through a cheque, it will be in USD, which conflicts with above answer by Alicia.

Selection_114.png

 

I don't know what below answer is about. My bank accounts are not in China.

Selection_115.png

 

I didn't reply anymore because I know Paypal is way better than I am at Taichi.

 

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