Originally Posted by Adraco

Paypal currency exchange always comes with an exchange fee of 2% or if it was 2.5%. Plus they also set their own currency exchange rate, so they follow the avista rates, but with their own modifications. Usually their rate is one or two cents off from the current avista rate, and that's why you are seeing those numbers.

Add to that their currency exchange fee and multiply that with the amount of transactions they do. Then you see why they are such a profitable company and why Ebay gladly bought them a few years ago.