who does currency conversion when transferring money to bank

[kkf_hu]

hello,

here's the situation.

in my Paypal wallet i have a foreign currency (in my case EUR), and i want to transfer it into my bank account linked to Paypal (which is in HUF, because i dont have an EUR bank account).

the question is, by whom does conversion take place. does Paypal automatically use their own exchange rate to first convert the EUR into HUF and then transfer it to the bank, or Paypal just sends the EUR to the bank, and the bank will use their own currency conversion rates to convert the EUR to HUF and credit it into my account. or can i maybe freely select from these options? additionally if the bank is doing the conversion are there still any Paypal fees to consider for this kind of transaction?

thank you very much

[PayPal_JonK]

Hello @kkf_hu,

Welcome! This is a great question. Here's some information I found from our User Agreement: 

"You may only withdraw PayPal balance in the opening currency of your account, unless we agree otherwise. In order to withdraw PayPal balance held in another currency you will have to convert the currency to the opening currency of your account, or it will be converted for you at the time of your withdrawal. Our transaction exchange rate will be used.

This means that if you withdraw:

• A PayPal balance held in a currency other than the original opening currency of your account, the conversion into your original opening currency will be performed using our transaction exchange rate.
• To a funding source (for example, bank account or card) denominated in a currency other than the original opening currency of your account, the conversion into the currency in which the funding source is denominated will be performed using our transaction exchange rate. "

In short, it sounds like either way the transaction will be converted on PayPal's end first, then sent to your funding source. 

I hope that helps!

 - Jon K