How to: Disable PayPal’s Dynamic Currency Conversion

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Read this article in German on Travel-Dealz.de 🇩🇪

If you’re using PayPal to pay for a flight, your vacation or any other product in a foreign currency, the tool will automatically convert the sum into your local currency. This service is called Dynamic Currency Conversion. And if you thought that this is not only convenient but also free, you’re wrong. PayPal charges a fee of around 3%.

Of course, the Fortune 500 company from San Jose isn’t the only one charging fees for transactions in foreign currencies. Many credit cards will also add a certain percentage on top of your bills.

But there is a way to avoid PayPal’s currency conversion. Just add a credit card to your account and select View conversion options during check-out:

PayPal Checkout Review your payment 2019 11 26 11 29 42
High fees if you opt for PayPal’s dynamic currency conversion

Now choose the currency you want to use for your payment:

PayPal Checkout Review your payment 2019 11 26 11 41 59
Choose between different currencies

Now your credit card will be debited in your preferred currency. Unfortunately, this has to be done separately for every purchase.

Update

PayPal disabled the option to permanently deactive the currency conversion for a specific card in certain countries. This guide won’t work beyond step 3 anymore.

Instructions

Time needed: 3 minutes.

The good news is that there is a way to deactivate the option to convert currencies. But just like it is the case with many features that are beneficial for customers, it isn’t that easy to find out how to change the settings. So we’ll walk you through the process.

  1. Log-in

    First, you have to log-in to your PayPal Account and switch to Settings:PayPal Change Settings

  2. View Automatic Payments

    Once you’re on the home-screen, click the tab Payments and select View for Manage your Automatic Payments.PayPal Manage Automatic Payments

  3. Manage Automatic Payments

    Now you’ll see a list of merchants that you activated automatic payments for. Tip: If you’re seeing this page for the first time, now might be an excellent moment to delete all automatic payments that shouldn’t show up here anymore!
    To proceed, click the Manage automatic payments link as shown in the screenshot.PayPal manage payments II

  4. Set Available Funding Sources

    Now you’ll be forwarded to another PayPal site. Don’t get scared, this process is normal, and you’re not about to run into some kind of scam trap. PayPal hasn’t managed to merge their two IT systems properly. That’s why from here on the whole website will look differently.
    What you’ll see is a table with merchants website, descriptions, sums that you’ve paid and other information. Also, you should find a link that says Set Available Funding Sources on the top right hand corner.
    PayPal Set available funding

  5. View Conversion Options

    Once you clicked that link, the next page will show all your methods of payment. Including the credit cards, that you added to your wallet. And next to your (Visa and MasterCard) cards, you will have the possibility to change the Conversion Options.PayPal conversion options

  6. Adjust Conversion Options

    This brings us to the last step. Click the check-box next to the second option. It should say: ‘Bill me in the currency listed on the seller’s invoice’. Hit the Submit button, and you’re good to go!PayPal bill in sellers currency

  7. That’s it

    From now on, PayPal will charge your credit card in foreign currency, and it is up to you (better: your bank or credit card company) how much fees you’ll be paying.

From now on, PayPal will charge your credit card in foreign currency, and it is up to you (better: your bank or credit card company) how much fees you’ll be paying.

Currency Accounts

You can also add different currencies to your PayPal account. However, this is only useful if you have money transferred to your account in those foreign currencies. Otherwise, the amount will simply be converted and debited from your bank account.

You can add a new currency to your PayPal account under Wallet:

Additional Currency PayPal
Add a currency to your PayPal account
Cover Picture: © pic3d - Fotolia.com
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Comments (8)

  1. Thank you very much for that tip, i use it a lot and wasn’t aware of that at all!!!

    Reply

  2. doesn;t work any more.
    They removed the ” Manage automatic payments ” link that takes you to the old site.

    Reply

    • Hi there! Thanks for leaving a comment. I just tested our How-To guide with my private account and could still find the “Manage automatic payments” link as described. If you find the time, it would be great if you could let us know which country version you are using.

      Reply

  3. The same as Gaby. Unfortunately info in this page is no longer helpful. After step “4. Set Available Funding Sources” you get new minimalist list of credit cards with checkboxes and Save/Cancel buttons and nothing more. Probably some new feature is being rolled out, right now. Some people might be getting old version. Spent a lot of time clicking around. But step 4 is gone. The only thing remaining is probably to set primary currency on your PayPal balance. Which is not a great option either.

    Reply

    • Hi! Thanks for your feedback. You’re right, PayPal seems to have rolled out changes for the procedure to disable the DCC. We updated the article accordingly.

      Reply

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