why paypal automatically convert currency

Those people who have online businesses, manage companies, or are in the freelancing field can face problems in transactions. Most people use Payoneer, Skrill, and PayPal.

Have you ever thought, about why PayPal converts currency? Why does PayPal convert currency automatically to local currency?

In this write-up, we will discuss the reasons why PayPal automatically converts currency. We also discuss their solution. And at the end of the article, you will get a complete concept of your queries.

If you are in a hurry, you can jump to the specific section of the article below.

Table of Contents

Let’s dive a bit deeper into the topic details to understand it easily.

What is PayPal?

PayPal is an American multinational online currency exchange technology that works all around the world. PayPal company operates an online currency payment system and supports money transfers. It serves as an electronic alternative to traditional currency (money orders and checks) in every corner of the world.

Users get started with a merchant account to accept and receive online payments globally. People pay and receive money by completing projects online. This platform is used by freelancers, shareholders, online companies, and businesses.

By linking your PayPal account with your credit card, debit card, or Bank account you can purchase online products from online selling market stores (amazon.com, Ali Express.com, Ali Baba.com).

Is PayPal automatically convert currency?

Yes, PayPal can convert currency automatically to your local currency. When you want to pay for online products or services or want to receive money from friends and family or a business located abroad, PayPal converts your currency.

You can convert currency manually on the PayPal platform by clicking the convert currency option right below the currency you want to convert. You have to enter the amount in the box to convert and click next to proceed.

Why does PayPal automatically convert currency?

(Top 3 Reasons)

You have been using your PayPal account for online transactions internationally. Have you ever thought about why PayPal automatically converts currency? It is also necessary to know, that PayPal involve different kind of fees (currency markup ranging between 3 and 4%) during automatic currency conversion.

There are some reasons why PayPal automatically exchanges your online currency for your local bank currency. These are discussed under.

Reason 1. PayPal Currency rules

If your home country allows you to close the deal the online transaction in dollars, your money will be first converted automatically into local currency and then convert back into dollars with official rates (sell and buy) on PayPal. You may face losses in the exchange market but these are the rules of PayPal company.

Reason 2. To withdraw payment easily

For those people who are using the PayPal service and living in countries that have currency other than USD, PayPal converts it automatically to USD to make the withdrawal easy for users.

Using this method, PayPal users can withdraw money without converting it to another currency, but it has already been converted to international currency (USD) which saves the user’s efforts and time.

Reason 3. To Transfer it to the Bank account

When you receive money in your PayPal account, so PayPal automatically converts the digital currency to local currency to make the transaction easy for users.

But that user that is living in the country having the dollar as a local currency, faces the problem of automatic conversion. Because PayPal changes its local currency (USD) to another. Anyhow, don’t worry the solution has given below.

Solution of automatic currency conversion

Sometimes you have noted that PayPal converts USD (your local currency) to BG Levas or Indian rupee (other currencies). And when you want to withdraw it PayPal once again converts BG Levas to USD to withdraw it successfully.

It has been written in their currency exchange policy, that whenever you receive electronic money from abroad countries PayPal automatically converts the currency into your local account. You can disable the option if you don’t want to convert the currency to other.

During withdrawal, you can choose two options.

First, When you find a currency converter you can click on the withdrawal option in the left upper corner just under the blue banner.

Second, you can click on the currency converter option to convert the currency automatically.

Suggestion: You can also contact the customer support of PayPal. So just call them and ask to set the withdrawal currency of your PayPal account.


People almost stop using PayPal international currency exchange technology because of some problems like PayPal having a high conversion rate (4%), automatic currency conversion, and it takes more time to withdraw.

Converting currency automatically can occur many problems so, you can apply the above solution and techniques you can watch it again to take a better concept and help you solve your problem.

Hope this article helps alleviate your worries. Tell me in the comments below whether this article was helpful or not and why. I would love to hear from you in the comments section.

For more technical information and problems techeglass.com is the center to help you.

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