Ok, I'll try my best to explain this as clearly as possible. My customers pay me in USD. I buy the item in USD from the source, all using my paypal which is in USD currency. But when I transfer my profits from my paypal account to my CDN bank account, it converts my USD from paypal into CDN from my bank. Lately, when my customers pay me in USD to my paypal, I have started paying the source with my Canadian Credit Card (instead of in USD with my paypal). So I accumulate a lot of USD funds fast in my paypal now since I don't use it when buying the item from the source. But my credit card racks up quickly so I have to pay it off at my bank. I always thought it was the SAME THING, whether I buy from the source with USD funds from paypal or if I buy with my CDN cc, because when I transfer USD funds from paypal to my cdn bank, it has to convert anyways. What I THINK is the problem is I'm actually getting shortchanged by doing it this way. Am I correct? Here's what I noticed. When I buy the item in USD with my cdn cc, the conversion rate on the sale was 1.376. That means something that cost $10 usd was charged into $13.76 on my cc statement. But when I transfer USD funds from Paypal to my CDN bank, the conversion rate was ONLY 1.31. That means $10 USD sent to my CDN bank turned into only $13.10. I'm not getting the 1.376 rate that I was charged when I bought something in CDN funds. So let's say the I sold it on ebay for $15 USD. I buy the item from the source in CDN funds using my cc, so I get charged ($10 usd) $13.76 cdn in my bank. When I transfer the $15 USD from paypal to cdn bank, I only get $19.65 CDN (15usd x 1.31). This method, my profit is 19.65 - 13.76 = 5.89 profit So, if I had bought that $10 item directly with my USD funds in paypal, then my net profit in paypal would be $5 USD (ignore fees for this case). Now I transfer that $5 USD from paypal to my cdn bank and they convert it at 1.31 so I get $6.55 cdn. 6.55 profit better than 5.89 profit. Conclusion: since paypal and my cdn bank both charge different currency conversion rates (1.376 when im buying, and only 1.31 when im transferring usd to cdn), I'm losing money this way. It would be best for me to ALWAYS buy in usd, then send the profits to my cdn bank, rather than to buy in cdn with cc, and then transferring my usd paypal money to cdn bank where it converts at a lower rate than purchasing conversion rate. Hope this makes sense. Am I correct? Did I forget anything? I never knew this. I always assumed conversion rate was standard and the same each day.