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I am looking to pay an article online and the site offers payment in USD. Coming from Europe, I chose to pay in Euro.
But the price in Euro seemed high so I checked and when paying the offered exchange rate is 1 EUR = 1,13234 USD whereas the exchange rate displayed by the currency calculator available in the "My Wallet" menu is 1 EUR = 1,1441 USD.
Why is there such a stark difference between the advertised rate and the one that is applied during payment?
PayPal uses a different exchange rate for balance transfers and for payments. If you convert money as a balance transfer within your PayPal account, you can get a better exchange rate, because the markup added by PayPal is smaller. Its just Paypals mark up (fee)
If you used PayPal’s currency calculator, the rate given there may not be the actual one used and could differ from the moment of transaction. You get a close estimate, not the exact rate with the calculator.