[Tutorial] Paypal Currency Exchange Rate Calculator

Every since I wrote this post [Tutorial] Link Maybank Visa Debit Card with Paypal in this blog and also posted on Lowyat Forum, I’ve been getting a lot of questions about what is the currency rate for Paypal, especially for US Dollar (USD) to Malaysian Ringgit (MYR) or vice versa.

So here is another tutorial on how to find out what is the currency exchange rate for Paypal from USD to other currencies.

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Step 1

Log into your Paypal account.

Step 2

Click “My Account” on the top left, then click “Withdraw”.

You do not need to have any money in your paypal account at this point. This is just to check out what is the currency rate.

Step 3

Choose either “Withdraw to your bank account” or “Withdraw funds to your card”. Only choose the option which is valid for you.

I chose the card as I did not link my Malaysian bank accounts to Paypal.

Step 4

The next screenshot might be different if you choose the “withdraw to your bank account” option but the principle is the same.

Leave the “Amount” bank. Click on “Currency Converter”.

A window will pop up with the currency converter and you can change US Dollar to any currency you want by clicking the dropdown menu. As you can see from the screenshot, the exchange rate as of 9 September 2011 is 1 USD = 2.93351 MYR.

Its that simple!

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You will notice that the Paypal rate is much lower than the actual conversion rate. As of now, the exchange rate (via CoinMill) is 1 USD = 3.00 MYR.

Paypal Help explains it as such :

How does PayPal calculate currency conversion / exchange rate?
PayPal receives a quoted wholesale rate twice a day. We then add a 2.5% spread above this rate to determine the retail foreign exchange rate that is applied to transactions involving a currency conversion.

Keep in mind that some of the rates quoted in the media are the inter-bank rates that are available only to the largest international banks, which purchase currencies in quantities of US $1,000,000 or more. A more applicable comparison for consumers is the exchange rates quoted at airports or other consumer currency exchange shops.

Source : Paypal Help

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