Description

Semi-hypothetical situation (based on a real transaction but with easier numbers.) A buyer was supposed to pay me $100 USD but somehow paid me $121.38 CAD instead (which is $100 USD converted to CAD by PayPal’s conversion rate). If I keep it as a PayPal balance and use it on USD purchases, I’ll be at a loss, because not only did I receive less than $100 USD originally (thanks to Paypal’s conversion rate) but I’d be losing again when converting CAD PayPal balance to USD for USD purchases. Correct? However, if I withdraw it to my bank account, then I’ll have $121.38 CAD in my bank account. If the buyer had paid me $100 USD and I deposited that to my bank account, would it have ended up being $121.38 as well? Basically, are the conversion/fees the same whether it happens when the buyer sends me CAD or whether I deposit USD as CAD, or are they different?