Actually, PapPal is different from other banks in many ways. In the case of exchange rates and currency conversion fees, the PayPal fee is ridiculously high. My bank, for example, charges only 1%. Sure, there are other banks that charge high rates like PayPal, but consumers have options and don't have to agree to such ridiculous rates. I, for example, use USAA Federal Savings Bank. The real problem here is that PayPal effectively hides the fee. As one poster notes, PayPal mentions it in the fine print of the account agreement, but it is nowhere to be found in connection with an individual transaction. Instead, PayPal reveals only the alleged exchange rate when processing individual transactions, which includes the outlandish conversion fee deeply buried within it so that the user is under the mistaken impression the exchange rate is a market-based rate. It would be quite easy for PayPal to automatically reveal the currency conversion fee on each transaction just has it does the exchange rate. I believe PayPal's refusal to do so confirms it does not want users to know the truth about the outlandish fee it charges. PayPal fooled me once. It won't happen again. Next time, I will make sure a foreign currency transaction is processed in the local currency. And, I will pay my bank a much more reasonable 1% conversion fee.
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