PayPal Checkout is a payment option used by many online stores and websites. When you select it, you may complete your purchase on a PayPal page or through a window embedded in the merchant’s website.
During this process, PayPal may select a currency that is different from the original purchase currency. For example, even if a product is priced in USD or CAD, the checkout may show the charge in MXN.
Why does PayPal Checkout change the currency?
PayPal Checkout may identify the country where your card was issued and automatically select that country’s local currency as the default payment option.
For example:
The product’s original price is in CAD.
The card was issued in Mexico.
PayPal Checkout selects MXN as the payment currency.
PayPal converts the amount from CAD to MXN using its own exchange rate.
This conversion takes place within PayPal Checkout before the transaction is sent to ARQ. As a result,ARQ receives and processes the purchase using the currency and amount defined during checkout.
Please note: the images and amounts shown below are simulated and provided for illustrative purposes only. They are used exclusively to demonstrate how currency selection works. The appearance, wording, amounts, and available options may vary depending on the country, device, merchant, and version of PayPal Checkout.
Example of PayPal Checkout selecting MXN even though the original purchase price was in CAD.
How can I avoid PayPal’s currency conversion?
Before confirming the payment, always review the currency selected in PayPal Checkout.
If it is different from the original purchase currency, follow these steps:
Click “See currency options”, “View currency options”, or a similar option.
If you keep MXN selected, PayPal performs the conversion using its own exchange rate, which includes PayPal’s currency conversion fee.
Select the original purchase currency, such as USD or CAD.
When you select CAD, the transaction is submitted in the original purchase currency without PayPal performing the conversion.
Review the currency and amount again before confirming the payment.
When you select the original currency, PayPal sends the transaction to the card issuer in that currency. When a conversion is necessary, it is processed by Mastercard and ARQ, generally using a more favorable exchange rate than the one offered by PayPal.
What is the difference between the two options?
If you keep the currency suggested by PayPal Checkout:
PayPal will perform the conversion.
PayPal will determine the exchange rate.
The rate may include PayPal’s own currency conversion fee.
ARQ will receive and process the transaction in the currency selected during checkout.
If you select the original purchase currency:
PayPal will submit the transaction in that currency.
When necessary, the conversion will be processed by Mastercard and ARQ.
You will avoid the currency conversion fee determined by PayPal.
Remember that the exchange rate applied by Mastercard and ARQ is generally more favorable than the rate offered by PayPal.
What if the purchase has already been processed in another currency?
The payment currency is determined by PayPal Checkout or by the merchant at the time of payment. ARQ only processes the transaction using the currency and amount it receives.
Because the conversion took place within PayPal and the purchase was processed according to the option selected during checkout, ARQ cannot reimburse differences caused by PayPal’s exchange rate or currency conversion fee.
If you would like to cancel the purchase or request a refund, contact the merchant or PayPal Support directly. If a refund is approved, it must be initiated by the merchant or PayPal.
Remember
Always review the currency before confirming a payment through PayPal Checkout, even if you started the purchase on another company’s website.
Selecting the original currency allows Mastercard and ARQ to process the conversion and helps you avoid less favorable exchange rates defined by third parties.