When you add a credit card to a newly created PayPal account, the default setting for currency conversion is set to "PayPal conversion" which isn't usually cost effective. To change the setting, go to the link below and click on Conversion Options right next to credit card and set to "Bill me in the currency listed on the seller's invoice.".
https://www.paypal.com/cgi-bin/webscr?c ... ll-funding
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