I recently tried to purchase using PayPal 1321.08 CAD, and my credit card showed a transaction amount of 1014.90 USD. This is way off from the current conversion rate of 1.36. It is actually a conversion rate of 1.30. In addition to that my bank will charge fees, but that is performed later in a separate transaction. I have used my credit card often when traveling to Canada, and the exchange rate is always very close to the actual exchange rate. So why am I being charged an extra 50$ USD when purchasing through PayPal?
PayPal says it doesn't charge any fees for purchases "IN THE U.S.". Does PayPal charge fees when making purchases outside of the U.S.? The Fees section on PayPal that discusses this only says that fees are charged when sending money to people in other countries (family members, etc.), but doesn't say anything about purchases made in foreign countries.
Where did the extra 50$ USD charged to my credit card come from? Did PayPal charge any fees on the Canadian purchase using my U.S. PayPal account?
I called my credit card provider, and they confirmed that they do have a 3% fee, but that would show in a separate transaction. The transaction amount charged to the card is purely the purchase amount converted from CAD to USD. But the exchange rate is not 1.30, that would be a terrible exchange rate for my credit card.
