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I'm considering purchasing an item from Australia and the seller has requested payment in Australian dollars. This is easy enough to do in PayPal, but will designating the funds as AUD result in a foreign transaction fee being assessed?
Yes, you will be charged with FTF.
I recently purchased a WP theme online and the company is based in the UK. I didn't realize it before I made the purchase, but 1% was added to what I paid. So PayPal deducted $97.97 from my acct., even tho the software was only $97.