PayPal Currency Conversion Fees – how to save money!

For international businesses, one of PayPal’s biggest cost factors is not immediately visible. While transaction fees are easy to spot, the real margin killer is often PayPal’s forced currency conversion. When foreign-currency payments are automatically converted into the base currency, businesses pay significant FX mark-ups on every transaction – costs that quietly add up over time, especially for e-commerce sellers with global customers.

The good news: with the official amnis integration, businesses can reduce PayPal FX fees by 50% or more – or even avoid them entirely – by having PayPal payouts credited directly into their amnis multi-currency wallets.

Find out how to make the most of your PayPal revenue streams.

PayPal business transaction fees

According to PayPal, a “commercial transaction” includes buying or selling goods or services or to make any other commercial type of transaction. The costs for domestic commercial transactions range from 1.90% up to 3.49%, plus a fixed fee based on the currency received, for example 0.39 EUR for Euro or 0.49 USD for a US-Dollar PayPal Checkout (January 23, 2023).

If you conduct international transactions, you need to pay the domestic fees above plus a fixed rate of 1.50%. As a result, international PayPal business transaction fees can add up to 4,99% (3,49% + 1,50%). In this calculation, the PayPal currency conversion fee is not included, yet.

PayPal currency conversion fee

On top of the PayPal business transaction fees, you may also be charged a PayPal currency conversion fee. The PayPal currency conversion spread amounts to 3-4%.

To sum up: When you conduct international transactions with PayPal, you are charged threefold:

• Domestic PayPal business transaction fees: Up to 3,49% + fixed fee (based on currency received)
• International transaction fees: Domestic PayPal business transaction fees + 1.50%
• PayPal currency conversion fee: Currency conversion spread of 3-4%

These charges are very expensive, especially if you regularly send or receive different currencies. Luckily, there are easy ways to avoid at least some of the fees charged by PayPal.

How to avoid PayPal business transaction fees

If you don’t need instant transactions, the most common way for international transactions is to use the SWIFT network with your bank account.

However, depending on the location of the sending and receiving bank, your money might go through multiple intermediary institutions until it reaches its final destination, adding up further transaction costs. SWIFT fees range on average from 3-5% of the transferred amount and are charged either both parties (sender and beneficiary) or just one party, depending on the type of SWIFT transaction (BEN, OUR or SHA). Further, SWIFT transactions are not instant, but may take several days, bank holidays not included.

In contrast, local payment schemes, such as the European SEPA or the American ACH are by far the cheapest alternatives to PayPal or SWIFT payments. The problem: In most cases, you need local bank accounts to access these payment schemes. In the next sections, we are going to explain how you can profit from these local payment schemes, even if you don’t have a local bank account.

How to avoid PayPal currency conversion fee

To avoid PayPal conversion fees for international transactions, businesses can connect a multi-currency or local account to receive funds in the original currency – as official PayPal partner, the amnis integration allows businesses to receive PayPal payouts in the original currency directly into their amnis multi-currency wallet.

If you conduct international money transfers in multiple currencies, multi-currency IBANs offered by amnis are a great way to save currency conversion fees. To compare: Traditional banks usually only allow you to open a foreign currency account for only one currency, so you need to manage several accounts in case you have more than one foreign currency.

If you’re looking for alternatives, you can also explore Stripe currency conversion and the options of optimising it with amnis.

Save business transaction and currency conversion fees with amnis

amnis is a digital payment platform that enables you to easily set up multi-currency IBANs and local accounts to profit from local payment schemes.

With amnis you can open a multi-currency account to pay and receive money in over 20 currencies via the SWIFT network. The options include commonly-used currencies such as EUR, USD, GBP, CNY, and JPY.

In addition, with amnis you get your own local CHF IBAN registered in your company’s name. This IBAN can easily be added to payment platforms like PayPal, allowing you to receive Swiss Francs directly into your amnis account – at minimal cost.

You also benefit from local accounts in EUR, CHF, GBP, DKK and CZK. This enables you to send and receive payments like a local business – without intermediary banks, with better exchange rates, and significantly lower fees than providers like PayPal. You eliminate unnecessary conversion charges and pay only a fraction of the usual transaction costs.

At last, amnis offers transparent flat rates (between 0.2% and 0.4%), which are completely independent of your FX volume. You know exactly what you pay without the need to scroll through long pricing lists.

With the official PayPal integration, businesses can receive PayPal payouts directly into their amnis multi-currency wallet in the original transaction currency. This prevents forced currency conversion by PayPal and gives you full control over when and how currencies are exchanged.

Pricing note: PayPal payouts in your reference currency are free of charge. For payouts in non-reference currencies, amnis applies a transparent package-based percentage fee (depending on your plan), helping you achieve significant savings. This keeps pricing predictable and avoids hidden FX markups.

*Limited availability: only 10 promo codes will be issued. Valid for new customers only and redeemable for fully onboarded accounts until 31.03.2026.

Sabrina Maly

As CMO at amnis, Sabrina brings extensive experience in international banking and business consultancy, supported by a strong background in management and customer-focused strategy. Her deep understanding of market needs and SME challenges enables her to translate complex financial topics into clear, impactful communication that helps businesses navigate global transactions with confidence.

At amnis, she specialises in foreign exchange and international business solutions, helping companies streamline global payments, reduce FX risks, and optimise their financial operations. Her expertise ensures that businesses stay informed, empowered, and equipped to succeed in an increasingly globalised environment.