International SMEs rely heavily on PayPal, but struggle with hidden FX fees and forced currency conversions. Find out how to change currency in PayPal efficiently, and how to reduce FX fees to a minimum with the PayPal multi-currency acquiring solution by amnis.
To change or convert currency in PayPal, simply log into your account and go to your balance overview. From there, you can access the currency management options and complete a conversion in just a few steps.
This process is easy to follow, but keep in mind that each conversion uses PayPal’s internal exchange rate, which includes one of the highest FX margins among major payment platforms.
While there are a lot of advantages of a PayPal business account, changing currency comes with several important drawbacks that can affect both margins and financial flexibility for your business.
One of the main disadvantages is the high FX spread, with a PayPal currency conversion fee of around 3-4%. For SMEs processing regular cross-border payments, this quickly accumulates into a significant cost factor, which directly reduces profit margins.
To compare: With amnis, businesses pay foreign currency exchange margins at mid-rate +0.20-0.40%, depending on the subscription plan used.
Another limitation is that PayPal does not fully function as a multi-currency treasury account. In many cases, businesses are forced to convert balances before withdrawal, especially when transferring funds to a bank account that does not support the original currency. This reduces flexibility and increases dependency on forced conversions.
While PayPal offers cashback options on select purchases, domestic or foreign currency balances do not generate interest. This means businesses holding large amounts of unused currency cannot earn any return on their available cash.
For SMEs with significant international payments, idle balances can represent valuable working capital. A dedicated multi-currency wallet with interest can provide more flexibility by allowing companies to manage different currencies separately and optimise their cash position.
Annualised balance cashback rate by amnis (as on July 08, 2026):
PayPal balances are not structured in the same way as traditional bank deposits. Funds held in PayPal accounts are not covered by standard deposit protection schemes that usually apply to regulated bank accounts.
With amnis, deposit guarantee schemes protect client funds up to EUR 100,000 per client.
For SMEs, frequent currency conversions through PayPal can have a direct impact on profitability. PayPal applies an exchange rate margin of 3-4% on top of the market exchange rate, meaning businesses receive far less than the actual value of their foreign-currency payments. While a single conversion may appear insignificant, repeated transactions can create substantial costs over time.
For example, an EU-based online business receives $100,000 in customer payments through PayPal and needs to convert the funds into euros. If PayPal applies an FX margin of around 3-4%, the business could lose approximately $3,000–$4,000.
Businesses selling internationally through online marketplaces, e-commerce platforms, or global payment providers are particularly affected because they often receive payments in multiple currencies.
While businesses can hold multiple currencies on PayPal, accessing and withdrawing foreign-currency balances can still require conversions depending on the account setup and withdrawal method. This is where the PayPal multi-currency acquiring solution by amnis helps businesses manage international payments more efficiently.
Further, API-generated payment links offer customers preferred payment methods, including PayPal or bank transfers. Payments are then transferred directly into the amnis multi-currency wallet.
"*" indicates required fields
| Scenario | PayPal only | PayPal + amnis |
|---|---|---|
| Receive foreign-currency payments | May trigger conversion depending on settings | Receive funds in original currency |
| FX timing | Conversion often happens inside PayPal | Convert when it suits the business |
| FX cost control | PayPal rate includes conversion fee | amnis is a lower-cost FX alternative |
| Multi-currency treasury | Limited | Built for business multi-currency payments |
| Payment links | You choose the currency. Funds are transferred to your PayPal account. | Your customers choose their preferred payment options, including PayPal. Funds are transferred to your amnis multi-currency wallet. |
While PayPal is the most widely used payment platform, high FX fees greatly impact profit margins. The PayPal multi-currency acquiring solution by amnis protects you from forced currency conversions and reduces FX fees to a minimum – all while granting cashback interest on select currencies.
Sign up today and reduce unnecessary FX fees with amnis!
If not applicable, leave the field empty or enter 0.
Estimated CHF savings per Year
Save money with top-tier FX rates – only 0.4% margin in the Launch package and 0.2% in the Professional package
Avoid hidden fees with 0% FX on every card payment (vs. 3–4% elsewhere)
Cut costly SWIFT fees by sending and receiving local payments instead
Estimated time savings in hours per Year
Save hours by capturing expenses directly in amnis with automatic pre-accounting – no manual prep needed
Speed up approvals and payment creation with invoice data auto-filled in amnis
Enter your email to download a personalized PDF with your results.
PayPal applies a currency conversion margin, which typically results in a cost of around 3-4% above the base exchange rate, depending on the currency pair and transaction type.
