Should you pay in SGD or USD? Avoid PayPal’s currency conversion fees and poor currency exchange rates with this simple guide!
So after hours of deliberation and self-bargaining, you’ve finally reduced your 20 cart items to a few must-haves (ugh but those socks look really good thooo). Now that you’re only left with a few clicks of checkout and payment, it must feel good to finally make the purchase.
But wait, what’s up with the PayPal payment page?
Should I pay in SGD or USD? Should I choose PayPal currency conversion? Or should I choose to convert currency with the card issuer instead? Wait, what’s the difference? I should Google this, right…?
Fret not YouTroopers, here’s a step-by-step guide to navigating the PayPal payment page so that you can avoid Paypal’s currency conversion fees and poor exchange rates. Let’s go!
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Introduction to PayPal Currency Conversion
PayPal is a widely used online payment platform that enables users to send and receive money across the globe. One of Paypal’s essential features is its currency conversion service which allows users to convert funds from one currency to another.
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How PayPal Currency Conversion Works
PayPal has a 3-4% currency conversion fee that’s added to the base exchange rate. The exact percentage can vary depending on the transaction details and currencies involved.
| Type of Transaction | Paypal’s currency conversion fee |
|---|---|
| – Purchase of goods or services with a currency not available in your PayPal wallet – Sending money to friends or family in a currency you don’t have at the time of transaction – Using PayPal’s Payouts to send money in a currency not held in your PayPal wallet | ~4% (depends on the transaction itself) |
| – Receiving money from a buyer, friend, or family member in a currency not supported by your PayPal account – Converting your PayPal balance from one currency to another without a related transaction – Withdrawing funds in a currency other than US dollars from your PayPal balance to your linked bank account – Refunding or reversing a transaction when you sold something but don’t have the required currency in your PayPal balance at the time of the refund or reversal | ~3% (depends on the transaction itself) |
To better understand PayPal’s currency conversion process, here’s a simple example of converting S$1,000 to USD. Assuming the base exchange rate is S$1 = 0.75 USD, so S$1,000 = 740 USD.
With PayPal’s conversion fee (typically around 3.5%), the exchange rate becomes S$1 = 0.7419 USD, so S$1,000 = 714.90 USD. This means you’ll get less USD for your SGD and have to fork out more money when making payments (yikes).
That’s why our handy YouTrip card comes in handy! YouTrip gives you the best rates all day with 10 in-app currencies and the ability to pay in 150+ countries (online and offline). Here’s how you can dodge PayPal’s currency conversion fees with YouTrip 
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How To Avoid PayPal’s Currency Conversion Fees When Shopping Online:
Step 1: Trigger Payment
Once you’ve decided on your final cart items, select PayPal payment and choose ‘Pay for goods or services‘. You’re not required to pay a fee here.
Step 2: Change Currency to USD
Don’t miss this step! Choose to pay in USD because the PayPal currency exchange rates are not the best. Plus, there’s a PayPal currency conversion processing fee. Oof, double whammy!
Step 3: Select YouTrip as Payment Method
Remember to use your YouTrip card for the best rates all day with zero fees!
Step 4: Change Currency Conversion Method
This is where most people make a grave mistake. If you see the option ‘Convert currency with PayPal‘, hit the ‘Change’ button or you’ll be charged with Paypal’s currency conversion fee.
Step 5: Convert with Card Issuer
Select the “Convert with card issuer” option. Why? Because YouTrip offers Wholesale Exchange Rates with zero fees!
That’s it! You’re all set to pay with your YouTrip card without having to be subjected to PayPal’s poor currency exchange rates and currency conversion fees. Here’s to more shopping!
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Wait, So How Much Am I Really Saving With YouTrip?
Depending on your spending amount, you’re saving around 3% to 4% on average, within a USD $200 transaction. Here’s a table for comparison:
| Item | Paying with PayPal Conversion (1 USD = S$1.40) | Paying with YouTrip (1 USD = S$1.34) |
| US$50 | ~S$70.22 | ~S$67.36 |
| US$100 | ~S$140.45 | ~S$134.73 |
| US$200 | ~S$280.90 | ~S$269.46 |
*Rates taken at the time of writing on 5 Jun 2024
Pretty neat, huh? So the next time you’re checking out with PayPal, remember to follow these five simple steps to avoid hefty fees and charges.
- Trigger Payment
- Change Currency to USD
- YouTrip as Payment Method
- Change Currency Conversion Method
- Convert with Card Issuer
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Shop Fee-Free!
Now that you’re an expert on how to dodge PayPal’s currency conversion fees and poor exchange rates, you’re ready to lock in more savings! Whether you’re shopping online or in-store, don’t forget to bring your YouTrip card along for the best rates all day at zero fees!
As Singapore’s favourite multi-currency wallet, we aim to get those pesky fees out of the way and help you save on your travels. With the best foreign exchange rates, no longer will you have to deal with those long queues at money changers! So if you’re looking for a go-to travel card, sign up for your complimentary YouTrip card today with <YTBLOG5> and get FREE S$5 in your account! Then, head over to our YouTrip Perks page for exclusive offers and promotions — we promise you won’t regret it. For more great tips and articles like this, join our Telegram (@YouTripSG) and subscribe to our free weekly newsletter here or down below.
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Stay safe, and happy travels!
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