Guide to pay less with PayPal

Hello guys! Today, I would like to share a tip on how to save your money when using PayPal. I bet almost all people on the internet, are familiar with PayPal. Especially if you are a frequent online shopper, you may heard about this service.

To put it simply, it is an online payment system that supports online payment and money transfer. There are other services similar to PayPal like Google Wallet and Alipay but in this post, I will solely focus on PayPal because I am familiar with their service.

Many people are complaining that PayPal rate is higher and you have to pay extra when using their service. Well, I don’t disagree with them. Their rate is indeed higher than actual value.

So, how to deal with it?

When you are paying in foreign currency, you have two options:
1. Pay using PayPal conversion rate
2. Pay using your local bank/card issuer conversion rate

Previously, PayPal made these options available during checkout which is before you actually MADE that payment. You can choose either option. However, these options wasn’t available when I made a payment few days ago.

For JPY16880, PayPal rated the item at MYR697 which I think quite high compared to exchange rate from (MYR664). As I couldn’t change it during checkout process, I had to do it from my account setting.

My advice is, always go for your local bank/card issuer rates as the rate is much lower than PayPal. Below is the step to change your currency conversion preferences:


1. Go to your setting button at your home screen. It should be at top right corner.

paypal setting

2. Hover at ‘Payments’ tab.


3. You’ll see something like this and click on ‘Manage pre-approved payments’.

paypal payment setting

4. Next, look for Set Available Funding Sources and click.


5. The screen shows your fund sources. Click on the ‘Conversion Options’. You might have more than one linked card/bank account, so choose one that you want to change.


6. Here it is. You will be set to use PayPal conversion rate by default. Choose option ‘2’ (Bill me in the currency listed on the seller’s invoice) and your invoice will be foreign currency. Click ‘Submit’ and you’re done.

When choosing this option, you wouldn’t know the exact amount but you can always check with your bank the daily exchange rates. In this case, the bank charged me about MYR675 which is still lower than PayPal. I’ve done this before and managed to save few ringgits.

And one more thing, pay only when your local currency is strong against the foreign currency or when the foreign currency performance is weak. You’ll end up paying less for the item.


Share your thought

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: