There is a difference between exchanging and converting currencies. You pay a commission when you exchange cash either at a bank or an exchange bureau, correct. However when you make a purchase using a credit card, the bank coverts the amount into you currency at the interbank rate (the commission that your bank may charge is different, some bank don't charge anything). PayPal adds its commission even when you use it to pay for the purchase. I made several purchase in one day. The credit card exchange rate was 1 = 1.096, i.e. I paid $1.096 for 1 euro. PayPal exchange rate for the purchase using the same card the same day was 1 = $1.18+ . Their claim "Our currency exchange rates are competitive with conversion rates used by banks" is ridiculous
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