With PayPal it shouldn't matter where the seller is--PayPal is American, so all USD transactions should show up as being charged by an American merchant, even if you're paying a Chinese seller for goods shipped to Europe. Likewise all my EUR transactions that I can find are listed as German even when the merchant isn't.

For non-USD transactions, PayPal's currency spread is so bad it's better either to pay Chase's FTF or--better yet--just use a different card.

ETA: I just went through a couple months of statements to double-check; all the USD charges are listed as being from Paypal in California, the one CAD charge is Canadian, and all but one EUR charge is listed as German. The exception was a payment in EUR to a Dutch software vendor that PayPal U.S. billed. Weird.