Saving on PayPal fees - revised version of my previous question!


It seems that PayPal want to charge a total of ~5% when using a credit OR debit card to fund purchases which involve currency conversion (I’m in the UK > buying items from in USD).

But. They only seem to charge 1% if payments are funded by a linked BANK account rather than debit or credit card.

So presumably I can link a Revolut current account to PayPal, click the setting in PayPal to use my bank to do the currency conversion and benefit from Revolut’s decent FX conversion rates?


I don’t think so :wink:

I assume that you’re thinking about setting up a SEPA direct debit? Revolut does not support that at the moment.


I just linked my PayPal account to my Revolut “current account” using what PayPal described as a “Direct Debit”. I have know idea what SEPA is… :wink:

PayPal deposited a tiny 0.01 GBP value / verification code into my Revolut account, which I then went back to PayPal and keyed in. My Revolut current account is now linked to PayPal.

So presumably if I now tick the box in PayPal that says ‘let my bank handle currency conversion’ - Revolut will be doing any USD > GBP conversion for me on my purchases, at better rates than PayPal?


Interesting, while direct debit is not supported for the personal GBP account, it seems to work for the EUR account. Since you already used the IBAN shown under “EUR” for a GPB transaction, I assume it would work with all currencies that are supported.

Hi Frank,

Just curious but where does it that direct debit isn’t supported on the GBP current account ?

The direct debit agreement / verification deposit PayPal sent (by direct debit) was on my Revolut GBP account, I don’t have any other currencies setup or balances in other currencies.


In the initial blog post when they first introduced the U.K. current account. They might have added the functionality without announcing it?

Direct debit requires a full UK bank account. Revolut offers current account functionality but is not a full UK bank account (as dual-authorised by the FCA/PRA.).

Right, that is what I thought. As far as I remember PayPal transfers a small amount to ones account for verification and does not deduct something. So verifying an account does not say anything about if direct debit deductions would work or not.