I used to use PayPal a lot but nowadays only rarely (actually only few times a year) because I don’t have need person to person payments where the service still can make some sense.
To my my surprise, one company wanted me to pay $200 to them using the PayPal yesterday and, rather than paying that from my balance, decided to use credit card issued in Europe.
I have written about Dynamic Currency Conversion (DCC) several times in past when merchants (often hotels) ask if you would rather pay in the currency of your card instead of the currency of the country you are in.
There is always mark up that must be disclosed at the time of putting the charge through. Remember that this is never in your favor. Why would I pay 4.99% for something that Visa and MasterCard both do for 0 commission?
PayPal conversion rate:
PayPal should clearly communicate that they have a 4.5% commission for charging in the currency of the card (while simultaneously charging the seller 3% to 4% fee).
The commission amount is not listed anywhere. Only the fake conversion rate is. I do understand that businesses are here to make money, but they should have clear consumer disclosures.