Withdrawing money in USD instead of my local currency

[Friggasdotter]

Hi everyone,

I've recently added a new VISA card to my account. Unlike my former card that was in my local currency, Croatian kuna, my new card is in USD. However, when I try to withdraw money, PayPal automatically makes currency conversion into my national currency. I think it is only because I'm from Croatia so they asume that all my cards are in Croatian kuna? I see no option to change it, so I have written to PayPal (apparently, a friend had the same problem and PayPal stopped the unnecessary conversion after she sent them an e-mail). Anyway, I'd like to hear what you have to say about this.

[mariop]

I wrote ot them on Friday. No reply. Forcing you to execute a transfer in a currency different from the one you want to transfer in order to profit from exchange rate spreads is a breach of the EU banking regulations. I will meet with a representative of the local regulator here and will request an investigation on these practices. PayPal is registered as a bank in Luxembourg and is subject to EU directives and regulations but I will have more information on this subject this Thursday.

[xXLimbXx]

Yeah this is ridiculous, I have opened a separate account in USD in order not to lose on the conversion rate and guess what. After sending funds, PayPal converts to my local currency and then back to USD. WTF???? 

[CitizenKane]

You're fighting with a giant, they probably have battalions of lawyers at their disposal and there is no way they will give up that sweet 2.5% conversion fees thru which they make billions I'm sure. 

But I would be most curios to hear what they reply, as a matter of amusement if nothing else.

[Whac-A-Mole]

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@Kellogs2005 wrote:

Have the same issue but with Polish zloty and I am about to receive the money in USD on PP but see no option of withdrawing them in USD to my USD account in Poland. Please assist on that since without the  decent support from your side I see no point of using the PayPal service which used to be great.

Thanks

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if you are an american expatriate ,you can link a Polish bank account and a US bank account,then transfering your US fund to a US bank is easy,it goes thru the US Federal RESERVE bank.

BUT,to transfer your US dollars sitting in your Polish Paypal account to your Polish bank account in US dolllars,would it not go thru the Polish central bank ?

Does your Polish central bank clear US dollars easily?

I would think most transactions are cleared in Polish currency,this is a question you should research.

LETS say the Polish central bank only clears Polish currency and all of a sudden some US dollars come in,what does it do?

My guess is that Paypal is taking your US dollars and convert it to Polish currency,send it thru the Polish central bank clearing system,arrive at your Polish bank,then your bank sees that it is going t o your US $ ACCOUNT,so it converts it back to US dollars so it can deposit into your account. 

why dont you do some research and come back and tell us how it is handled,dont forget Paypal is not a bank,it keeps our money with different banks ,where does it keep your money,may be in a Polish bank,may be in European bank ?