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PayPal has currency conversion fee based off percentage, is it interest?

161 viewsMarch 29, 2024General (Misc)interest interest money paypal

PayPal has a currency conversion fee based off a percentage of how much money you are covering (eg CAD to USD). Is paying that fee considered paying interest?

Bismillahi Ta’ala

Walaikum Assalam Warahmatullah

Paypal is providing a tangible service to exchange the amount being given into any other currency and have it made available at the other location. This conversion fee is not considered interest and is kept within reasonable value of the service provided.

Aside from the interest aspect, the concern would be that the % amount may add an ambiguity to the service fee being charged. However such ambiguity which is is dispelled to a reasonably level when approving the transfer of any $x amount.

The transaction is valid.

Wallahu A’lam

And Allah Ta’āla Knows Best
Mufti Faisal al-Mahmudi

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