Originally Posted by
arfgoblue
I just wanted to announce that I spoke to a representative and checked with a supervisor at PayPal, and they confirmed that PayPal does charge an overseas tranaction fee with their atm card, in addition to the $1 use fee. Here is is copied from the "fee" section of their website:
Multiple Currency Transactions Exchange rate includes a 2.5% fee*
* If your transaction involves a currency conversion, it will be completed at a retail foreign exchange rate determined by PayPal, which is adjusted regularly based on market conditions. This exchange rate includes a 2.5% spread above the wholesale exchange rate at which PayPal obtains foreign currency, and the spread is retained by PayPal. The specific exchange rate that applies to your multiple currency transaction will be displayed at the time of the transaction.
as such, i have updated the wiki.
I also spoke with a PayPal representative and can confirm that the item above in their T&Cs does NOT pertain to ATM transactions. This relates to standard PayPal transactions between two PayPal members, such as auction payments. If you go to the ATM Card section of the PayPal T&Cs (click Legal Agreements at the bottom of most any PayPal page) you can scroll down to this language regarding foreign ATM transactions:
Foreign Transactions. If you use your Debit Card to obtain cash or to purchase goods or services in another currency, the amount of the charge in foreign currency will be converted to a U.S. dollar amount by the MasterCard network. In making this conversion, the network will use the procedures set forth in its operating regulations. Conversion to U.S. dollars may occur on a date other than the date of the transaction; therefore, the currency conversion rate may be different from the conversion rate in effect on the transaction date. You acknowledge that PayPal does not determine the currency conversion rate that is used. The conversion rate includes a 1% fee charged by MasterCard to PayPal, which we pass through to you without any mark-up.
Bottom line: Using a PayPal ATM to exchange foreign currency will cost 1% + $1.