PayPal converts payments to US Dollars when using American Express Credit Card

Hi All,

I have just come across a problem with PayPal recently and I have been using PayPal for a few years now.

I recently got a Nectar American Express credit card, so I can collect more points when shopping online. I registered it in my PayPal Account and 1 day I was on eBay looking around. I purchased something and paid through PayPal using my American Express credit card. The item was being sold in Pounds, my PayPal Account is in Pounds and my American Express credit card is in Pounds. However, in PayPal checkout system they converted the Pounds into US Dollars using their exchange rate costing me 4p more than the purchase price.

I emailed PayPal once the transaction was shown on my credit card statement and their explanation was it is how their agreement is setup between them and American. I have attached their email below so you can read the full explanation. I don’t fully understand their explanation, as it is complicated. I have been through their website trying to find this issue, but I can’t find anything. Is this a type of fraud that they are committing?

I am not happy, but I don’t know what I can do.



Dear xxxxxxx,

Thank you fro taking time to contact PayPal. My name is Emjay and I am happy to assist your further.

I understand that you would like to know why you are charged in dollars when you use your American express credit card.

Mr. xxxxxxx, when you send money using your American Express credit card, the amount that is charged to your card will always be charged in U.S. Dollars.

I appreciate that this may cause an inconvenience to you and may not be the process that you wished for, but please understand that this decision was made in accordance with PayPal's contract with American Express.

When you use your credit card, PayPal provides you with a choice of whether PayPal does the currency conversion or the credit card association does the currency conversion for your transaction/s.

If PayPal performs your currency conversion, we disclose the conversion rate to you at the time of the transaction. If you choose not to use the American Express currency conversion process, you will have no recourse against American Express with respect to any matter related to the conversion.

If you choose to use the credit card association's currency conversion procedures, PayPal is not able to disclose the conversion to you. Your card issuer will determine the foreign exchange rate to apply to the transaction, and you will not be informed of the foreign exchange rate or any additional foreign exchange fees applied until you are billed by your card issuer.

Should you have concern in the future please do not hesitate to contact us and we will be more than glad to assist you.

Thank you for choosing PayPal. Take care.

PayPal European Services
PayPal, an eBay Company


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