I never noticed this before, perhaps because my 
payments were to Japan, and it's been awahile... 
but made a paypal payment to Canada today and 
they totally scam you- nowhere online could I 
find a rate less than 1.19 (most places showed 
1.20), yet paypal showed 1.16 - just beware 
because their exchange rate will scam you; and 
even though they're affiliated with ebay now they 
won't use the ebay rates- they still charge 3-4% 
more.
I called them and they said "we use our own 
rates."
I wasn't going to be able to pay for an auction 
because of their rates, but they apparently 
change (whether because I was on the phone or 
because it just happens) and it dropped a bit so 
I was able to make the payment, but they still 
made more money off me than I would like- I guess 
it's back to pink money orders (*sigh*).